Asian Glass Oct-Nov 2015 Edition by Bowhead Media Ltd

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Solutions & Know-how Bohle offers you everything you need for perfect bonding - not only the know-how from 20 years of experience in glass bonding, but also the world's largest range of products related to this technology. The advantages for your business are clear: practically unlimited design possibilities, for example in the construction of glass furniture, by invisible bonds and extremely high bonding strength, very short processing times, not to mention low investment requirements for equipment.

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GLASS PROCESSING IS OUR PASSION ARCHITECTURAL AUTOMOTIVE SOLAR DISPLAY Benteler Mechanical Engineering – Glass Processing Machinery More than 60 years of experiences More than 3500 successfully installed machines In 55 different countries From a 2 m machine up to a 150 m line For glass thicknesses from 0,5 mm up to 90 mm From standard to customized solution Your partner for every task! Benteler offers washing, drilling, grinding machines, CNC processing centers, handling systems, machinery for solar module production and for mirror production, as well as laminating lines. As standard machine or customized production line. Please find more information under: www.benteler-glass.com Benteler Maschinenbau GmbH · Germany · www.benteler-glass.com · +49 521 542 0 · glass-processing@benteler.com

Contents: October/November 2015 GLASS PROCESSING UNIT FOR SALE Asian Glass is pleased to offer to the market a state of the art expanding glass processing unit with existing customers both internally within the local market, and also within the export market. The plant has been in operation for the past 12 years and has shown significant growth in that time. In full operation this factory is offered for sale as a live business. Built on a plot of 11,000 sq metre the actual workshop is has been expanded on 2 different occasions within the last 5 years to bring it to its current 2,000 sq metre size. Full details from amurphy@bowheadmedia.com

Regulars 10 Welcome Iran’s open door…

12 Headline News

Openings, closures and industry moves from across Asia.

22 Global View

See us…where?!

Vitrum Milan, Italy

Our eye on the international arena.

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

Raw material news and views.

Jakarta, Indonesia

30 Comment & Analysis

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

28 Batch

PET gains as recycling grows. 8

Glasstech Asia

asianglass october/november 2015

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www.asianglass.com Features 34 Iran in focus: part 2

In the second part of our two-tier focus on Iran, we look at the flat and processed glass market demand and how the industry is shaping up for the future.

40 Container glass production costs AG examines how market pressures are forcing radical re-thinks of production expenditure in ASEAN’s container glass sector.

48 China float, flat and tempered

As the full analysis of 2014 comes to a conclusion as the remaining data is revealed, the China Architectural and Industrial Glass Association discusses with AG some of the lessons of last year and what this may mean for how the current year will have performed by the end of December.…

“all three flat glass producers in 54 Bangladesh: a country in expansion the country are highly backwardly Jahir Ahmed looks at how the glass industries of Bangladesh integrated”, see p.36 are bucking the sub-continent trend and continuing with aggressive expansion plans. “We are not in a hurry to start it given the state of the world economy at the moment,”, see p.40 “The flat glass industry sector needs to be dynamic with free market competition.”, see p.54

Anaylsis 64 In Focus

As the industry gears up to implement the switch from PET to glass for medicines meant for certain patient categories, the debate on the merits and demerits of both materials continues.

66 Window

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

Analysis and insight into Brazilian output data. Asian Gla

74 Looking Forward

The digest of what’s in and what’s on for the next three months.

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(0) 208 Valerie Adams w.asian asia 133 527 glasss.c nglass.co Email: vadam on, Tel: + 44 (0) m 3 208 133 om son@asiangla 5273 ss.com

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October/November 2015

OFFICIAL MAGAZIN

GLASSTECH ASIA

ell, if things keep improving, it seems that Iran could well be THE headline market maker in 2016. The potential in the country is massive of course, and with the lessening of sanctions, and the expected in-flow of investment, glass makers (and therefore those that equip them) can look forward to a bright future.

ag az Of fical M GLASSTEC

JAKARTA, IN DONESIA

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Inside:

news, views, analysis

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

ADVERTISING AND DESIGN

Container glass prod uction costs Chinese processe d glass focus Bangladesh unde r scrutiny? Iran in the spotlight , part 2

PLUS!

EDITORIAL

and

much, much more! Pharmaceutical packaging, for example, is expected to be one such boom area. To reinforce this, news has broken that Novo Nordisk is to become the first western pharmaceuticals company to build a manufacturing plant in Iran, in a sign of confidence in the country’s economy. The Danish drugmaker said it would invest €70m in a facility to make insulin pens for local use, creating 160 jobs and increasing the company’s access to the about 5m Iranians with diabetes. The agreement comes less than three months after Iran agreed to limit its nuclear programme in return for the eventual lifting of international sanctions, potentially opening the way for more foreign investment in the country. Ole Moelskov Bech, head of Novo Nordisk in the near east region, said the nuclear deal was not a “determining factor” in the investment but it had made the decision “a lot simpler”. Medicines are exempted from the sanctions for humanitarian reasons, meaning that Novo Nordisk could have built a factory even without the nuclear deal provided it did not export the products made there. But Mr Bech said sanctions had made it increasingly hard to operate in Iran, citing the difficulty of conducting financial transactions and the need to isolate IT systems from the rest of the company’s network. Novo Nordisk has been manufacturing in Iran through a local partner since 2002, but it would be the first among its “big pharma” peers to set up its own factory. Mr Bech said it would take four to five years to start production. Trade delegations from Germany and France have visited Iran in recent weeks to explore investment opportunities in a market of 77m-plus people. US companies have been more reticent as the nuclear deal has faced resistance from Republicans on Capitol Hill. Novo Nordisk, the world’s biggest maker of insulin, serves about 700,000 Iranian diabetics through its existing manufacturing partnership and Mr Bech said the new investment would cement its long-term commitment.

IT HAS BEEN VERY, VERY DIFFICULT SINCE THE CLAMPDOWN ON FINANCIAL TRANSACTIONS BUT WE DECIDED TO STAY BECAUSE WE DIDN’T WANT TO ABANDON THE PATIENTS

Happy Reading!

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

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

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

Bowhead events 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

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glass technology

RAPIDLINE Series – Complete Cutting System Solution. Hope to see you at: 6. - 9. October 2015 Milan, Italy Hall 22 • Stand N01

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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HEADLINE NEWS ASIA Green buildings prove the driver for AIGMF India The venue for Executive Committee and Annual General Meeting of The All India Glass Manufacturers' Federation (AIGMF) was Paharpur Business Centre, LEED Platinum/BEE 5 star Building. The venue was purposely chosen to introduce Green Buildings concept to its members and to also debate on use of glass in buildings as ecofriendly measure. As an Industry initiative, talk on Green Buildings was organised in collaboration with Paharpur Business Centre to brainstorm on Indian Govt., vision of smart/ solar cities including Green Building concept that could be adopted for the betterment of society. Mr. Barun Aggarwal, Director, BreatheEasy*, a division of Paharpur Business Centre (PBC)* gave a presentation on Introduction on Green Buildings. Mr. Aggarwal spoke about BreatheEasyTM that helps individuals breathe pure air and helps companies implement solutions for improving Indoor Air Quality while reducing energy consumption. His presentation covered following on glass

application in buildings: • Use of flat glass in doors and windows permits use of sun light and saves energy/power bills • Use of glass in partitions saves wood and checks felling of forests • Use of glass and glass products in Buildings is quite popular, especially with glass turning from a fragile to a sturdy material i.e. toughened, noise or bullet resistant structure • Use of Glass is generally maintenance-free for the lifetime of a building The session on green buildings was organised in addition to the presentation on GST- Challenges for the Businesses by Mr. Kabir Bogra, Partner (Indirect Tax) Khaitan & Co., coinciding with AIGMF meetings. As CSR initiative, AIGMF gifted 100 glass water bottles specially manufactured by Hindustan National Glass and Industries to Paharpur Business Centre to further strengthen green building concept. The bottles carried a logo on Act India* which aims at enabling people demand responsible and safe packaging. Mr. Arun Kumar Dukkipati, Sr. Vice President, AIGMF said,

that Glass containers made from cullet or weight reduction technology saves energy. Every ton of glass recycled saves 322KwH of energy, 246 kg of CO2 and 1.2 tonnes of virgin raw material. He also shared some of the main characteristics of glass: • Glass is 100% recyclable - It does not lead to generation of any solid waste, thus saving land fill space. This is a major advantage from environment point of view in the present times, when municipalities are finding it difficult to find space to dump urban waste • Glass is resistant to chemicals and solvent - It is used for packaging of chemicals and solvents as it does not react with them • Glass ensures hermetic seal - It provides air tight packaging for products thus providing longer shelf life. It is the most preferable product for vacuum and carbonation • Glass is transparent - The customer is afforded the facility of visually examining the content from outside the pack • Glass has best recycling performance - It is a cradle-to-

cradle packaging - meaning it can be recycled infinitely to be re-made into new bottles or jars as good as those manufactured by using fresh raw materials Mr. Dukkipati congratulated PBC for adopting use of glass bottles in its Green Building Business Centre, which is a step forward towards clean environment. Mr. Dukkipati mentioned that use of glass bottles supplements Prime Ministers’ vision of Swachh Bharat Mission (Clean India Campaign) as waste from other packaging material are usually found in streets, drains, rivers, etc., with people having the tendency to litter anywhere and everywhere. On the other hand, Glass being 100% recyclable mostly reaches junk seller for recycling and adds to clean environment. Mr. Dukkipati concluded by saying that use of glass will make smart cities look more elegant, beautiful and eye-catching. 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.

Modern Safety Glass installs tempering line India Hyderabad and surrounding cities are witnessing a boom in processed and value added glass for past few years on the back of brisk construction activities. Though, Indian construction industry in general is going through a recessionary phase there are still some pockets in the country that are defying this trend. In order to supply the glass processed glass demand Secunderabad ( termed as a twin city of Hyderabad) based Modern Safety Glass Pvt. Ltd.

has set up a tempering plant at Medak . The plant has started commercial production from second half of this year. Sadiq Kapadia, Managing Director of Modern Safety Glass says “ Processed and value added glass demand from the construction industry in and around Hyderabad is very robust. Our state of the art plant in the near vicinity of Hyderabad gives us an unparelled advantage in terms of serving the largest processed glass market of south India.”

asianglass october/november 2015

He further adds “ We have built our factory on a modular concept, so that we can expand our product portfolio with minimum hassels. There is an ample scope and demand of various value added glasses in Hyderabad and we are contemplating to add some new products in our portfolio soon.” Modern Safety Glass is contemplating to start lamination and IGU units at its Medak plant in near future. However, the company refused

to disclose the timeline of these projects. Inclusion of Hyderabad in the smart city list announced by Prime Minister Modi will also lead to brisk demand of processed glass in the city and vicinity. Bifurcation of erstwhile state of Andhra Pradesh into Telengana and Andhra Pradesh and proposed establishment of a new capital in this newly created state will further spur the construction activities and processed glass demand in these Southern states.

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NextGlass Co. to make the “smart” choice Malaysia It was the complexity in which his company was setting up a new smart glass business that excited Ken Low. His is a Kuala Lumpurbased chartered accountancy firm and the business they are now entering is manufacturing smart glass using Korean technology which will be listed in the US stock market by the end of the year. This means US money will be used to produce a Korean product in a business set up by Malaysians. If that is not global enough, there are plans to later shift the final stages of the smart glass production to other Asean countries. Mr Low, the man behind KL Management Services, says: “This is the most ambitious venture we have ever made.” He hinted that there would be a lot more coming up. He needed US$20 million as investment over five years to manufacture a type of smart glass created by a company in South Korea under the name NextGlass Co Ltd. Realising that investments such as this would be easily raised

from the more mature markets rather than the more sceptical Asian markets, Mr Low decided to list their company NextGlass Technologies Corporation in US. “It’s not a new technology. Smart glass has been around for a while, but it is the whole process that is exciting,” he told The Establishment Post. Smart glass came into the market in 1986, and it was after 2000 that it has become so highly commercialised. This is largely due to the numerous sectors that are starting to use smart glass over the last 15 years – from architectural to transportation, solar, healthcare and electronics. Smart glass is also known as switchable glass because changes its light transmission properties when light, voltage or heat is provided to it as a stimulus. Smart glass is used usually in doors, windows, partitions and skylights in houses and commercial buildings. They can be controlled manually as well as automatically. Smart glasses help in reducing cost

of heating, air conditioning and lighting. “It is also bullet-proof,” says Mr Low, with a gleam in his eye, trying to hint the potential of this technology. The global smart glass market size is expected to reach US$4.71 billion by 2022 with North America and Europe forming the bulk of the market. “In Asia Pacific, China is the major buyer of smart glass,” says Mr Low. Globally, the transportation sector is likely to continue being the largest consumer. This sector accounted for over 50 per cent of the market share in 2014, with significant demand coming from aerospace and automotive. On August 12 in Sepang, Malaysia, KL Management Services (KLM) and NextGlass Co Ltd signed a memorandum of understanding where KLM will provide the operational costs financing of US$20 million for five years to produce and sell NextGlass and related products. The event was officiated by Penang Deputy Chief Minister 1,

Dato’ Mohd Rashid Hasnon. The NextGlass showroom is presently in Penang with a view to set up a factory, likely to be located in Penang, in the near future. Presently, there is a showroom in Summerton, Persiaran Bayan Indah, Penang showcasing NextGlass products. Meanwhile, construction on NextGlass manufacturing concern at the Cheonan Industrial Complex in South Korea is underway and due to be completed next year. This will be the world’s first complete integrated production and research facility. Presently, producers of smart glass combine technology and components from various sources to create their product. Michael Yang, chief executive officer of NextGlass Co Ltd says that by April next year, NextGlass would have set-up factories for the final processing stage of their glass panels, which is the glass lamination, in Cambodia, Taiwan and Japan before eventually doing the same in Malaysia.

decades). Our past experience in glass industry will enable us to beat the competition in processed glass segment.” He further says “ City of Rajkot and neigbouring city of Surat are witnessing large sacle commercial constructions and a lot of processed glass is required for these. Keeping in mind that low e glass has become a necessity in most large scale constructions, we have gone for an equipment which can enable us to temper these technically advanced glass types.” Though R & B Industries was founded in 2014, but the current management of the company also owns a mirror production unit in

Rajkot. Chetna Mirror Industries, the mirror production venture of the management is a popular as manufacturers of “Krishna ”brand mirrors. The company claims that it produces more than15 types of different mirror including silver, grey, golden and bronze. The company later ventured into value added glass processing such as acid etching, frosting, air brushing, stain glass, carving, engraving and v-groove etc.

R&B to temper glass India Rajkot, Gujarat based R & B Glass Industries has jumped on the bandwagon of tempering glass producers in the country and has started commercial production from its newly commissioned tempering plant. R & B Glass has installed a full forced convection tempering plant from Chinese tempering technology provider Foshan, Gunagdong based Foshan Shunde Sike Glass Machine Co Ltd ( Popularly known as SIKE). The tempering line is capable to process glass in the dimensions of 2400 mm X 4200 mm and can process hard coated and soft coated low-e glass. Capable of processing 100,000 sq. m. of

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glass per annum, the tempering plant is assited by 4 Station Auto loader, cutting machine from Vetromac. SIKE claims that it sources major parts for tempering furnace production from reputed suppliers like Siemens (Germany), Schneider Electric (France), Barbieri (Italy), Omron(Japan), Vesuvius (France) and motion control from Autonics (Korea). Tejas Raval, Managing Director of R & B Glass company says “ We have been in glass business for more than three decades. We are one of the largest producer of mirrors in Gujarat ( Raval also heads Chetna Mirror Company, which is in production for last two

Asian Glass: mobiles, ipads & androids

october/november 2015 asianglass

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Jih Hsin unveils airless glass packaging Taiwan On the occasion of the latest edition of the MakeUp in New York tradeshow, Taiwanese glassmaker Jih Hsin Glass, headquartered in Hsin-Chu in central Taiwan, has recently released a new glass bottle with an airless pump, thus illustrating a new development strategy. “This new product is exactly the illustration of our approach,” explains Jane Huang, Sales Manager. “Jih Hsin Glass not only delivers high quality bottles but also does other additional processing, like silk screen printing, frosting, and coating. We can also provide caps, pumps, and other accessories for the bottles. Our goals are quality assurance, good pricing, on time delivery, quality service, and continue to improve to meet our customer’s needs.” The glass maker, created in 1973 and who has gradually specialized in manufacturing almost exclusively bottles and jars for the cosmetics industry now exports almost all its

EU Raises Anti-Dumping Duties On Chinese Solar Glass China

production to the United States, Europe (Spain and Germany) and the whole of South East Asia (Japan and China). To note also a specialty, the production of nail polish bottles. The production equipment consists of a 45 tonne furnace, which supplies five production lines. In terms of decoration the firm offers the whole array of available techniques (Glass bottle polishing, printing, coating, frosting, electro coating). It also offers a variety of pump, caps, and other accessories to fit with the bottles. “Our turnover, says Jane Huang, is mostly generated by the commercialization of our standard ranges (60%), the remainder being specific series. We decided two years ago to invest more on the segment of design and innovation. And indeed it pays off! The proof, this new airless glass bottle that we have just finished developing and filed a patent.”

The European Commission today imposed higher antidumping duties on imports of solar glass from China. The revised rate of anti-dumping duty ranges from 17.5 to 75.4 %, according to Regulation (EU) 2015/1394 published today in the Official Journal of the EU. The European Commission has decided to revise upwards the existing measures as a new investigation has confirmed that Chinese exporting producers have absorbed the anti-dumping duty in force so far. The increase of the measures will only have a limited impact on the total costs of the solar modules, in the order of magnitude of 2-3 %, the Commission's investigation said. Chinese solar glass imports have been subject to anti-dumping duties of up to 36.1% and antisubsidy levies of up to 17.1%

since May 2014, for five years. The current revision was prompted by a complaint by Solar industry association EU ProSun Glass. The latter, whose members represent more than 25 % of the total EU production of solar glass, lodged a request for reinvestigation of the original anti-dumping measures in November 2014. On reopening of its solar glass investigation, the Commission chose to sample two Chinese exporters of solar glass, Flat Solar Glass Group Co., Ltd and Xinyi PV Products (Anhui) Holdings, since the two groups represent more than 60 % of total Chinese exports to the EU. Between December 2013 and November 2014m, the export prices of Flat Solar Glass Group fell on average by 17.6 % , while prices of the Xinyi Group dropped by 30.4%.

Astrakhan to seize chance Dumping duty imposed at last for expansion Russia

India The Finance Ministry has imposed definitive anti-dumping duty on certain float glass imports from China. This follows recommendations of the Designated Authority in the Commerce Ministry in its second sunset review investigations on certain float glass imports from China and Indonesia. The Revenue Department has now imposed anti-dumping duty of $ 218 per tonne on certain float glass imports from China. This duty will be valid for five years. This anti-dumping duty has been levied on float glass of thickness 2 mm to 12 mm (both thickness inclusive) of clear as well as tinted variety (other than green glass). It however does not include reflective glass, and processed glass meant for decorative, industrial or automotive

purposes. While recommending that anti-dumping duty be continued on certain float glass imports from China for the next five years, the Designated Authority also recommended withdrawal of existing duties against Indonesia. The Designated Authority saw no credible evidence on the likelihood of continuation or recurrence of dumping from Indonesia. The petition seeking sunset review investigations was filed by Saint-Gobain Glass India Ltd, HNG Ltd, and Gold Plus Glass Industry Ltd who collectively command 66 per cent share in total production in India. There are two other known producers, Asahi India Glass Ltd and Gujarat Guardian Ltd, who have fully supported the application.

asianglass october/november 2015

Astrakhan Glass Factory (LLC "BM" Astrakhansteklo) is one of the oldest companies in the region, and indeed is Russia's only plant producing a 0.25 liter bottle. As the factory’s popularity has boomed in the last 12 months, and the number of orders have increased so rapidly, the company admits that the current facility is no longer fit for purpose and therefore extensive expansion is required. To that end, it is now intending to expand its output by 50% from 6.5m. to 9m. bottles per annum. In terms of markets, the company currently supplies high quality packaging for food, pharmaceutical and perfume makers not just in Russia, but in also in the former Soviet Republics of Kazakhstan, Turkmenistan and Azerbaijan. Indeed an increase in particular of wine bottle demand

from those countries has been partly behind the impetus to undertake the expansion. In equipment terms, this means the introduction of more glass-forming machinery, an extra annealing furnace, a fully automated batch preparation department with electronic dosing of raw materials to produce 160 bottles per minute. "There is a federal fund to support enterprises, whose activities are aimed at import substitution. However, currently there is no glass industry. In the near future we are working with the Ministry of Industry of the region to develop a plan to integrate the enterprise into the federal list and send the proposal to the Ministry of Industry of Russia ", said Konstantin Markelov of the company when asked how the expansion would be funded.

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Ghani reflects on positive H1 Pakistan Ghani Glass Limited (GHGL) is a leading glass manufacturer in Pakistan. It is a flagship company of the Ghani Group, an interest-free corporate entity. Multinational conglomerate company headquartered in Lahore operates a diverse range of businesses, including five modern glass manufacturing plants, automobiles industry, beverage company and some mining companies. Recently, Ghani Group has successfully established itself in UAE as well with RAK Ghani, a 40 KTPA greenfield container glass project at Ras Al Khaimah. A market leader in manufacturing of glass, the sale of glass containers and sheet glass of different types was started the commercial production in 1995. Main products include pharmaceuticals amber and clear glass bottles, food and beverages flint and green glass bottles, flat glass, sheet glass and float glass. Over the years, the company has achieved dominant market shares in Pakistan with four modern glass plants in Pakistan producing float glass and container glass with an annual capacity of approx. 300,000 tons. At this time, Ghani is a market leader with float glass at 73 percent, glass pharmaceutical bottles at 90 percent and Foods & Beverages glass containers at percent. As

a part of expansion strategy, Ghani Glass has successfully commissioned new project of Parma container glass having a production capacity of 500 million bottles per year in 2014. The group's glass plants were the first ones to achieve ISO 9001:2000 and 14001 certifications in Pakistan and they have now been upgraded to ISO 9001:2008 & ISO 14001:2. Ghani caters to a wide array of customers that include all multinational pharmaceutical and FMCG companies along with major distributors and dealers of float business. The company also export its products to several countries. Companies include Glaxo Smith Kline, Abbot, Sanofi, Pfizer, Novartis, Star, Coca-Cola, National Foods, Pepsi, Mitchells, Unilever, etc. Recent financial performance: Ghani has witnessed its production capacity gone up in last five years along with its sales numbers. The company has seen an impressive performance during the last five years and has given a firm double-digit growth rates in its top line on the back of high demand both by construction sector and the manufacturing sector of the country. The strong demand from FMCG and pharmaceutical sector along with construction and higher exports Ghani Glass limited witnessed its sale growth from Rs 6.5 billion in FY10 to Rs

10.2 billion in FY14. However, the sale has declined close to 2 percent in FY 14. This decrease mainly came from float glass and pharmaceutical products. But with the installation of the new facility in Karachi particularly to Pharma sectors demand where Ghani has an edge now. The margins during the last five years have seen some minor fluctuations, overall they stayed relatively healthy. By every means Ghani Glass Limited (GHGL) has seen an exceptional start of FY15. Growing demand for glass products, resilient cost control measures and recent capacity expansion have provided all the right ingredients for a decent growth. For the nine months ended March 2015, the glass company showed a solid 15 percent jump in its top line from the same period last year. Getting help from greater glass demand and better production following the commissioning of the new production line the company maintained its sale growth and reported nearly Rs 8.2 billion in revenues in 9MFY15, compared to Rs 7.1 billion in same period during FY14. The glass company reported an impressive improvement in its profitability. Making a gross profit of Rs 2,104 million and an after tax profit of Rs 883 million. Management has implemented Cost Reduction Programs (CRPs)

Glaston secures major order China Glaston has received a significant order from Yunnan Diankai Energy Saving Science & Technology Co., Ltd. for two Glaston CCS1000™ double chamber glass tempering furnaces. The deal is worth approximately EUR 2.4 million and also includes Glaston Care service agreement. The deal also includes an option for a third CCS1000™ furnace. The machines will be delivered to the customer during the last quarter

of 2015. The order is booked in Glaston’s Q3/2015 order book. Yunnan Diankai Energy Saving Technology Co., Ltd. is a new company covering new energy saving float glass technology, processing and Nano ceramic technology. The company is located in Kunming City, Yunnan province, in South West China. In addition to the markets in Yunnan, Sichuan and Guizhou the company will export to Vietnamn, Laos, Cambodia

asianglass october/november 2015

and Burma. With the patented two-stage combi-convection heating method CCS1000™ is a perfect solution for customers with pressing market demands for outstanding capacity and quality of the end product. With its unique innovations the CCS1000™ takes furnace operations to the next level offering glass processors an energy efficient, high capacity and user-friendly solution.

at various levels of operations that have been largely successful in controlling expenses. Despite a strong increase in sales, the administrative and distribution costs have declined notably. Ghani Glass Limited's gross, operating and net margins for the period were 26 percent, 16 percent and 11 percent respectively, compared to 22 percent, 12 percent and 6 percent during the nine months of FY14. The company has also seen its per-share earnings jump, from Rs 3.76 to Rs 7.16 in 9MFY15. Going forward, Ghani Glass Limited has become without a doubt one of the leading brand names in glass and glass related products both in volume and quality. Moving forward, sales of both the float glass and glass bottles will likely be substantial in the future. Notably, the demand for float glass will certainly go up mainly due to the public development under PSDP as well as growing private sector construction. Similarly, the order of glass bottle will go up after the recent performance of FMCG, and pharmaceutical industry and Ghani will also take advantage of that. The merging of Techno Glass Industries Ltd into Ghani Glass Ltd will also add the value to Ghani Glass Limited. With the current decline in fuel prices Ghani will certainly thrive under the current business environment.

NEWS IN BRIEF Glass LLC has announced that its coating lines, comprising subsidiaries Emirates Glass and Saudi American Glass, have won projects exceeding USD76.2 million in the first six months of 2015. During the first half of 2015, the new orders include multiple projects worth USD40.8 million in the UAE, USD20.4 million in the Kingdom of Saudi Arabia, and USD12.24 million in Qatar, Bahrain, Oman and Kuwait.

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Float surge proves decisive Bangladesh The country's float glass manufacturing industry is growing at 20-25 per cent annually, benefited by its duopoly market structure. The more-than-Tk 150 billion float glass market is shared by Nasir Glass and PHP Float Glass to the extent of 65 per cent and 15 per cent respectively leaving the rest of the demand to two other local sheet glass makers and importers to be met. The country's oldest glass manufacturer, state-owned Usmania Glass Factory and MEB Sheet Glass Industries are producing sheet glass having very minimum market shares. The two big market leaders-Nasir and PHP--are now planning to expand its markets further as the local demand is rising every day. Nasir Group is setting up its second manufacturing unit investing nearly Tk 120 billion while PHP Float Glass has also planned to double its production capacity from 2,500 to 5,000 tonnes monthly investing more than Tk 150 billion. "We are planning to go to the

market by the end of next year or in the beginning of 2017 with A Grade glasses which are now being imported," Prashun Talukder, Head of Marketing of PHP Float Glass. He said no A-Grade glass is now being produced in the country. They are being imported from France, the US and Japan. "Our A-Grade glass will be produced targeting posh class of consumers only," he said. But Nasir has set a goal to meet the needs of newly increasing urbanisation across the country. Shafiqul Alam, Head of Marketing of Nasir Glass said rising demand from outside Dhaka and rural areas has led us to set up a second glass factory. Before Nasir Group and PHP entered the market in 2005 and 2006 respectively, the product was imported on a small scale. The demand for float glass, mainly used in buildings, now stands at around 15,000 tonnes per month, which was just 200 tonnes ten years ago. In the next five years, the

Stewart to build new float plant Kazakhstan Stewart Engineers, Inc. (USA) announced the official project commencement to build the most modern complex for the production of float glass. Investment Fund of Kazakhstan (IFK), a subsidiary company of National Management Holding Baiterek (Baiterek), and Stewart Engineers, Inc. (SE), have completed the signing of partnership agreements, project contracts, and secured project funding with Development Bank of Kazakhstan (DBK) to build this facility, under the organization Orda Glass ltd. LLP (Orda Glass). The Orda Glass Complex in Kyzylorda, Kazakhstan aims to be the most modern industrial float glass facility in the world using the latest float glass and on-line CVD technology. It will produce 600 MTPD of value-added products including high performance pyrolytic nanotechnology coated

monthly demand is expected to rise to 30,000 tonne due to growing rural consumers, especially in thana and upazila level. Between 2005 and 2013, the demand was driven by urban consumers, but of late, it is being fuelled by rural consumers, who now prefer low-cost float glass to costly wood in their houses. For instance, 60 per cent of Nasir Group's float glass is now used outside Dhaka in rural Bangladesh. It was around 1015 per cent five years ago. Nasir Group's new factory, which will be located at Mirzapur, Tangail, will produce 800 tonnes per day once it starts commercial production in about three years' time. Its existing factory in Gazipur also saw its production capacity doubling recently to 500 tonnes per day. Both the marketing heads said they are producing world-class floating glass, but importers are ruining the market by importing glasses from China, Indonesia and Vietnam through under-invoicing.

However, Bangladesh Glass Merchant Association President Alamgir Hossain said being only two market players, PHP and Nasir are enjoying duopoly and they increase prices whimsically. He alleged the government raised total duty from 80 per cent to 134 per cent on import of glasses being influenced by the two market players. Prashun Talukder said, "Sometimes we are to incur losses as the importers import excessive quantity of glasses which are already being manufactured in the country." He also denied the allegation of traders practicing duopolistic approach. "Increasing duty on imports and protecting local industry are the government policy and the government is doing that. We have no influence on that," said Shafiqul Alam. Silica and gas, the primary needs of float glass makers, are available in the country while the secondary raw materials such as dolomite, feldspar and limestone are imported from neighbouring Bhutan, Nepal and India.

Topaz plans for medical glass Russia

glass (low-e pro, solar control, reflective, TCO) with glass thickness ranging from 2-12mm, as well as high quality architectural and automotive glass. In addition, Orda Glass will have laminating capabilities with future expansion to other value added products. “We are excited to be part of the Orda Glass project and contribute to the economic expansion in Kazakhstan,” said Andrew Stewart, President of Stewart Engineers, Inc. “It is evident that Kazakhstan views this industrial project as a priority, and collectively the teams have worked hard to streamline and fast-track this industrial project. I would particularly like to note the tremendous support provided by Baiterek and IFK, as well as the talented team of Orda Glass. The timing is right to bring about the realization of this project on time and within budget.”

asianglass october/november 2015

Vladikavkaz-based plant "Topaz" has unveiled plans to produce medical glass and glassware, according to comments by representatives of the company. "The project envisages the production of such products from the medical borosilicate glass ampoules, vials, the cartridge / cartridges /" a spokesman said. The company explained that currently the plant's management is considering options for cooperation with key suppliers of raw materials, as well as decide on the technical building permit. The plant will be equipped with a gas-electric regenerative furnaces that minimizes emissions. The project will create about 500 new jobs and in addition, will supply annual tax income

to the federal budget in the region of 1.2 billion rubles, the regional - about 1.5 billion rubles, and municipal,. 53 million rubles. The payback period will be around 4-5 years. The project is planned to produce annually 12.9 thousand tons of glass made of borosilicate glass. "This will replace similar impor ted products on the Russian market", said the representative of the Ministr y. To implement the project requires funding in the form investkapitala investkredita or $ 5.5 billion. At the same time the spokesman said that there are preliminar y agreements on the par ticipation of foreign investors in the project, but the condition for par ticipation is the provision of guarantees in the amount of 5 million euro.

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Packaging in China in review China In recent years, advances in new healthcare reform have boosted market demand from China pharmaceuticals industry and driven growth in the demand from pharmaceutical packaging industry. In 2014, the Chinese pharmaceutical packaging market reached RMB72 billion, up 10.6% from a year earlier. As a traditional form of pharmaceutical packaging bottle, pharmaceutical glass bottle took up a large proportion of the Chinese pharmaceutical packaging market in initial development stage of the packaging market. However, affected by negative factors like the substitution of new packaging materials (plastics and aluminum foil) and continuous decline in purchase prices of packaging materials quoted by

pharmaceutical companies due to reform in medical system, China pharmaceutical glass packaging industry has developed sluggishly, with its market share standing at estimated 45% or so for the time being. Due to low barrier to entry, China's pharmaceutical glass industry has been large but not strong as a whole, with low and medium-end products struggling with huge overcapacity and high-end products relying on imports. At present, developed countries around the world all use level I waterproof neutral borosilicate glass, while China still mostly adopts low borosilicate glass, soda-lime glass and almost domestically unique "semi-neutral borosilicate pharmaceutical glass" (its chemical stability cannot meet

neutral requirements; the heavy metal content in glass is not defined clearly; dimensions are not accurate). The production of neutral borosilicate glass faces dual barriers of raw materials and tube-making technology, which have been still controlled by foreign companies so far, resulting in persistently high production costs and limited applications. In 2012, German Schott AG, a world well-known pharmaceutical glass company, together with Zhejiang Xinkang Pharmaceutical Glass Co., Ltd., announced to establish a joint venture that would engage in pharmaceutical packaging, an important sign marking localization of pharmaceutical glass. But, even for the joint venture, it has to buy glass tube

produced by Schott abroad. However, the defect of low borosilicate glass easily flaking causes safety risks to health of users, so it is imperative to promote neutral borosilicate glass. Market demand for neutral borosilicate glass pharmaceutical containers has been growing by more than 20% over the past two years. More and more pharmaceutical players started to use neutral borosilicate glass, especially for high value-added products. For example, Buchang Pharma employs neutral borosilicate glass packaging materials for all its Danhong Injections, and some innovative R&D-oriented pharmaceutical companies like Jiangsu Hengrui Medicine Co., Ltd. also adopt neutral borosilicate glass.

Distribution of container glass assets by Province (%)

Growth rate of container glass assets (2013-2014) by Province (%)

Growth rate of container glass profits by Province (%)

Growth rate of sales in container glass by Province (2013-2014, %)

asianglass october/november 2015

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Duran dances to a new tune UNITED STATES A German-based company has acquired a New Jersey-based glass manufacturer, according to announcements by the company. The Duran Group and OEP Capital Advisors signed the agreement to acquire Wheaton Industries from Incline Equity Partners on Tuesday. Neither company discussed for what amount Wheaton Industries was purchased. "It's really almost an ideal fit," said Wayne Brinster, CEO of Wheaton. "It would be hard to imagine two companies that fit together better. Even the product portfolio does not have much in the way of overlap." Duran expressed interest in purchasing Wheaton 16 months ago, Brinster explained, and the sale process began last January. There were a number of parties interested in acquiring Wheaton but the Millville-based glass company's board members chose

MEXICO Duran and OEP. "It's a nice marriage," Brinster said. "The two companies are aligned to be the solution provider of choice for laboratories." Both Duran and Wheaton manufacture laboratory glass. Duran distributes mainly in Europe and Wheaton distributes in North America. Duran focuses more on reusable equipment, according to Brinster, and Wheaton focuses more on disposable equipment. Due to the different focuses, there is not a lot of overlap between the two companies. The two companies will also be able to help distribute each other's products in each other's markets. There are also plans to expand the combined market into Asia. OEP purchased Duran in February. "OEP is excited about the acquisition of Wheaton by Duran Group as it represents a

leading brand in the life science market," said Dr. Jorg Zirener, a partner at OEP, in the company's announcement. "We are looking forward to working together closely with the management of both companies, to further accelerate the growth Wheaton has enjoyed." Wheaton has been involved in glass manufacturing for 125 years. With the acquisition, Wheaton plans on continuing the tradition. "We do not see this as having an effect on employment in a negative way," Brinster said. "There's no such thing as guarantees but as the result of the transaction we're looking to expand the business. If anything we're hopeful to add jobs to the South Jersey area and not take any of them away." Another longtime Millville glass factory, Gerresheimer Glass Inc., recently closed its doors and lost 100 employees.

Glass sales grow as outlook improves CZECH REPUBLIC Sales of Czech glass and ceramics producers grew by 8.1 percent to 45.65 billion Kč last year and direct exports with 33 billion Kč sales contributed three quarters to the figure, according to data from annual report of the Association of the Glass and Ceramic Industr y. The highest share worth 17.34 billion Kč came from flat glass. This segment registered a 12.2 percent growth in sales. Companies from group AGC Flat Glass Czech with sales around 13 billion Kč contributed significantly to the volume. “The development in the flat glass segment in the coming years will be influenced in particular by the situation in construction in Central Europe and production of the automotive industr y,” the association said in the annual report. The highest growth in sales was registered by utility

Vitro to expand float ops

glass producers whose sales increased by 22.1 percent to 4.92 billion Kč. Sales of ceramics producers rose by 30 million Kč to 4.56 billion Kč and 73 percent of them came from technical and sanitar y ceramics. The positive results were reflected also in employment. At the end of last year, 22,208 people worked in the sector, 1,001 (4.7 percent) more than in 2013. Of the number, 18,532 worked in glass production and the rest in ceramics production. The average wage remained unchanged at 25,383 Kč a month. “The year-on-year wage development reflects the economic situation of companies in the glass and ceramics industr y. A growth was seen only in the group of technical and sanitar y ceramics. In the other

asianglass october/november 2015

production sectors, wages either stagnated or even fell moderately,” the association said in the annual report. The highest wages were in flat glass production, of 31,056 Kč a month on average. The glass and ceramics industr y in the Czech Republic is strongly export oriented so it is influenced by changes in the world and in particular in the EU where 70 percent of the exports are targeted. “Pro-export orientation and dependence on a high number of related industrial sectors, to which it supplies products, makes the glass and ceramics industr y ver y vulnerable,” the association warned. “Not only the development of domestic demand, but also future economic development is important, in particular in Europe which is the biggest export territor y for the Czech glass and ceramics industr y,”

Officials from Vitro, S.A.B. de C.V., the leading glass producer in Mexico, have announced the expansion of the company’s production capacity of flat glass, through the construction of a new float glass furnace in the country, which it is estimated to become operational in 2017. This furnace will be added to the current capacity of three furnaces, according to a company release. In addition to this expansion, the float glass furnace operating in Mexicali, will enter a repairing phase in mid-2016 that will also be used to expand its production capacity. Net investment for the capacity expansion will be approximately $85 million, given that the company will take advantage of some equipment in good conditions from the float glass furnace that was closed in Mexico City in 2006, according to the release. According to company officials, this expansion is projected due to good future market perspectives that the company sees in the automotive and construction industries in Mexico. “This decision will enable us to support our customers’ growth in the automotive and construction segments in the coming years and to continue generating future value for our shareholders,” said Adrian Sada Cueva, CEO of Vitro, in the release. the association said. Exporters will now have to grapple also with the loss of markets in areas hit by war conflicts. Competition of companies from third world countries, in particular the Middle East, is growing constantly. This sector has therefore never grappled with such uncertainty as in the last few years, it added. In the middle of this year, 108 companies with more than 20 employees were involved in the manufacture of glass and glass products in the Czech Republic.

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Glass container industry undergoes expansion ETHIOPIA Addis Ababa Bottle & Glass (AAB&G) S.C. is undertaking a 1.1 billion Br expansion project to meet growing demand. The 40 year old company, now co-owned by Ethiopian and Chinese investors, is facing rising demand especially from the brewery industry. Currently its capacity stands at 30tn of glass per day or 20 million bottles per annum. With the expansion, taking place in three phases, Addis eyes a production capacity of 150tn of glass and 153 million bottles per year It is undertaking the expansion on 80,000sqm of land at its premises near Mickey Leland condominium along Ambo Road. It will finalise the first phase of the expansion in six months, with the remaining two phases expected to take one year. In addition to 360 employees it has, it will also add 328 additional workers once the project is over.

Prior to the commencement of the expansion, a feasibility study had indicated that there is a demand for 265 million bottle a year in the country. A single beer factory alone demands 14 million bottles, which the factory is not able to deliver, says Semen Bekele, plan & information service head at the factory. AAB&G used to supply for beer brands under Diageo but the company no longer supplies bottles for these brands. Now they supply bottles to BGI, brewers of St. George's Beer. It also, supplies bottles for cosmetics companies and agro processing plants. Addis is now constructing the plant that will process the raw materials and pass them to the three other plants that are yet to be constructed, Semen says. It uses raw materials such as limestone, marble, soda ash and glasses, 98pc of which is accessed locally.

Viridor launches recycling plant UNITED KINGDOM Recycling firm Viridor has launched its new £25m glass recycling plant in North Lanarkshire. The 70,000 sq ft facility at Newhouse will recycle material from 17 Scottish local authorities. It is hoped the new plant will reduce the need for industries such as Scotch whisky to import glass. A total of 30 jobs have been created at the recycling centre, which will have the capacity to recycle 200,000 tonnes of glass every year. Julie Hesketh-Laird, from the Scotch Whisky Association, said: "The opening of Newhouse assists the Scotch whisky industry by increasing the availability of high-quality recycled glass. "As glass accounts for the vast majority of the packaging of Scotch we welcome this supply chain innovation at Newhouse which advances glass recycling. "Such developments help the industry in its commitment to sustainability and delivering on

These raw materials are kept on a heap in the compound of the factory. Addis is also moving its warehouse to Sululta, 25Km north, in order to minimise the dust that affects residential areas nearby. Land is currently being processed to facilitate this move. The company was under state ownership until five years ago, when Bazeto Industries & Trading Plc bought it. Addis is the first of three glass factories in Ethiopia. There is now also Ethio Hanssam International Plc and Daylight Applied Technologies, with production capacities of 42,000tn and 20,000tn, respectively. Three new factories are also under development with completion scheduled for March 2016. Juniper Glass Industries Plc also started construction of its plant in Debre Berhan in April

2015 with a production capacity of 150 million bottles a year. Goda Glass & Bottling S.C, in Tigray, and Allied Chemical Plc are also expected to have factories with capacities of 90tn and 50tn a day each. Though the Institute for Glass Industry Development under the Ministry of Industry is collecting data in order to estimate local demand, it confirms that the demand is rising, said Director, Mengistu Getachew. "We are closely working with these projects, assisting them in different aspects, for instance training their experts," says Mengistu. Customs data indicates that Ethiopia imported 73,400tn of glass in 2014 at a cost of 1.2 billion Br, up from 65,500tn and 970 million Br in 2013; 56,400tn and 732 million Br in 2012, and 40,000tn and 517 million Br, in 2011.

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its environmental strategy." Opening the new plant, Environment Secretary Richard Lochhead said: "I welcome this significant investment in modern recycling infrastructure. "Glass packaging is important to a number of Scottish food and drinks manufacturers and glass recycling makes sense for our economy and the environment." The Newhouse plant is part of a £357m recycling and renewable energy investment package announced by Viridor in Scotland over the last 18 months.According to company officials, this expansion is projected due to good future market perspectives that the company sees in the automotive and construction industries in Mexico. “This decision will enable us to support our customers’ growth in the automotive and construction segments in the coming years and to continue generating future value for our shareholders,” said Adrian Sada Cueva, CEO of Vitro, in the release.

asianglass october/november 2015

To respond to the increasingly stringent rules regarding fire safety and fuel economy (i.e. weight savings) within the superyacht industry, Glass Deco has developed a new patented lamination method which meets the new fire requirements as laid down in the Passengers Yacht Code (PYC) & IMO res. MSC.307 (88) - (2010 FTP Code) Annex 1 Part 5. In addition, the company deploys various techniques to save weight by making use of ultrathin glass. For instance, Glass Deco can now carry out thermal tempering on two and three millimeter thick glass -something that was previously only possible on glass with a thickness of four millimeters and over-. This allows direct weight savings of 50% without compromising on strength or appearance. The popularity of glass in design has risen over the years, and so, therefore, has the need for more advanced techniques that compensate for the increased weight. Glass Deco has invented lightweight and even unbreakable

glass which is suitable for the superyacht industry. "Glass Deco has always excelled in realizing various projects involving glass. Experience and skills built up over decades are today used to produce high-end glass objects and sculptures which often form the centerpiece of a larger project," says Frans van Hapert C.E.O. of Glass Deco Corporation BV. "I am happy that Glass Deco is capable to deliver this new lamination method starting from today after years of developing and investing in this new high tech production technique. With this new invention, we prove to be still trend-setting in the world of decorated glass." Glass Deco has invested for a long period in developing unique innovations for the superyacht industry as well as in the aviation industry. Manufacturing takes place in the company’s new (opened January 2015) stateof-the-art facility in Nuenen, The Netherlands.

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People and Places

Mir Stekla proves “outstanding” success Russia The 17th edition of the Mir Stekla International Exhibition has now released its post show report. This year the exhibition welcomed 200 companies from 22 countries including Italy with a national pavilion and China with a collective exposition. The exhibition occupied more than 5,000 sq m. The Summer Session of the International Forum on Glass and Modern Technology, which covered the most relevant issues of the industry was during the exhibition period. More than 50 glass industry professionals submitted

their reports and presentations. Many Mir Stekla 2015 participants have already admitted that they reached all their goals at the exhibition, signed contracts for the next year, and applied for participation in the 2016 show. These early birds are Lazurnoe (St. Petersburg), KAMI Association (Moscow), Glass-Commerce (Ukraine), Altinаy (Turkey), Bottero (Italy), and many others. All participants noted the increased number of visitors and the much better quality of exposition. This year we noted that more companies showcased equipment.

The exhibition’s general media partner the Glass International magazine (UK) recognized the efficiency of cooperation and made the decision to prolong the cooperation next year. The ArtGlass Salon showed many creative ideas embodied in interior design items and the best works of well-known Russian and foreign craftsmen working in glass painting, stained glass, glass fusing and lampwork. Moreover, the ArtGlass Salon and the Support Foundation for Young Designers and Architects “TVORI!”(«Create») arranged a

historical art glass exhibition. Everybody could talk to Andrey Ushakov, an art glass collector and a descendant of a Supplier of His Imperial Majesty Court. He also showed his unique collection of art bottles and glass works of art. The tour around showcase “The Russian Traditions in Glassmaking” revealed a lot of history of this old craft. The total number of visitors to the exhibition was 8,000 people including 6,000 industry professionals, experts, and heads of companies.

Changes at Henry F Teichmann United States Henry F. Teichmann Inc., a global leader in glass engineering and contracting since 1947 which is headquartered in the Pittsburgh area, has announced upper management changes in the organization effective August 17, 2015. Mark F. Piedmonte has been promoted to President. Mr.

Piedmonte has over 33 years of comprehensive experience in the glass industry, including float, container, and fiberglass. He first joined Teichmann in 2001 as an Electrical Engineer and Manager of Electrical Projects, and has served on numerous regional Electrical Industry Boards and Joint Committees. Piedmonte is currently licensed in more than 20 States in the U.S. He had served as Deputy Construction Manager for about 5 years before becoming Vice President of Operations for the past two years. Kevin Yung re-joins Teichmann as Vice President of Operations. He will report directly to the President and be responsible for the Engineering, Purchasing and Construction departments. He first joined Teichmann in 2003 as

Finance. Ms. Andrews has been with Teichmann for over 28 years, serving as Accountant for the company for the last 25 years. Her vast experience will ensure continued strength and stability throughout the transition and growth of the company. Arch McIntyre remains the Chairman of the Board.

a Project Engineer. Mr. Yung is returning from the energy sector on the West Coast where he has spent the last 9 years. Yung’s 16 plus years of comprehensive experience includes qualifications in float, container and fiberglass industries. Kathleen M. Andrews has been promoted to Vice President of

Glass-wrap signs new CEO Germany Glass-wrap GmbH is pleased to announce the appointment of Mario Luettecke as its new CEO as of September 1. Mr. Luettecke has more than 18 years of international experience in the construction industry of which the last 8 years with Josef Gartner, a member of the Permasteelisa Group and large international façade cladding company.

Within Josef Gartner he quickly rose through the ranks across the globe and most recently served as the company’s General Director for Russia. Mr. Luettecke brings with him a wealth of management and leadership expertise, a proven track record of success, intimate knowledge of the industry and a passion for making a positive impact.

asianglass october/november 2015

‘I am very happy to join Glasswrap, a highly professional organization with a unique product that will make a profound impact on the way flat glass has been transported and handled for over a 100 years. I look forward to add my expertise and industry knowledge in making Glass-wrap into an international success and benchmark for the industry. Glass-wrap is the world’s first

flat glass packaging system that successfully combines substantial cost savings, safety and sustainability into one great product’, says Luettecke. The Glass-wrap Board is convinced that Mr. Luettecke will successfully use his skills as a dynamic and competitive construction and façade management professional to take Glass-wrap to the next level.

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WE ARE GLASS PEOPLE

HEYE SPEEDLINE IS-MACHINES

HIGH SPEED AT HIGH QUALITY FOR MANY YEARS TO COME High safety and high usability to protect staff and equipment Clear interfaces for fast installation and exchange of parts Clean design to fulfil HACCP requirements Flexibility through modular design Same core â&#x20AC;&#x201C; same variables

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News

Heye provides in new portal access Germany Since mid of 2014 already, the company has implemented a client login service on its website, which makes available operating manuals, software updates and spare part lists for its customers. This central point for equipment documentation offers its users several benefits: Operating manuals provide a comprehensive insight into the handling of equipment, spare

Batch

part lists significantly simplify ordering of the necessary spare parts and software updates guarantee latest data availability at any time. The customers also have the possibility to upload by themselves files and data that can then be retrieved by Heye staff. The customers appreciate very much the facilitation of daily work by this system. It has now become more and more popular

and has enjoued huge interest among its users. Furthermore, Heye has successfully tested and approved a new customer service tool for the handling of return shipments: Each return procedure gets a Heye ticket number. By this ticket number, each returned article can be related to its consignor and processing time is reduced. Here

again, Heye has set up an area on his website that customers can visit to get a ticket number. For more information contact Mark Ziegler, Marketing Manager, Heye International GmbH, Lohplatz 1, 31683 Obernkirchen, Germany: Telephone: +49 (0)5724 260. Fax: +49 (0)5724 26 539; Email: marketing@heyeinternational.com

Legislation geared to provide US soda boost United States // Soda Ash U.S. Senators Ron Wyden, D-Ore., and John Barrasso, R-Wyo., introduced bipartisan legislation to maintain competitive royalty rates on America’s natural soda ash, which is critical in manufacturing industrial products like glass. The Soda Ash Competitiveness Act will set the royalty rate on sodium compounds (and related products) produced from federal land at 2 percent for five years. “Natural soda ash produced in the United States directly supports hundreds of jobs in Oregon and across the country and was the second largest export for the Port of Portland last year,” Wyden said. “Continuing the royalty relief for domestic soda ash keeps the playing field level so American producers can stay

competitive in a global market where China is gaming the system and producing synthetic soda ash exports at the expense of U.S. producers and the environment. The current royalty rate reduction is set to expire this year, so now is the time for the Senate to act and create certainty for this thriving American industry.” “American soda ash producers are battling unfair foreign trade practices of China and other countries. The last thing Washington should do is raise costs here at home,” Barrasso said. “American soda ash production supports thousands of jobs across the country in a variety of sectors, including mineral production, shipping, and manufacturing. Our bipartisan

bill will give American soda ash producers the certainty they need to stay competitive in the global market and keep these jobs here in the United States.” Senators Mike Enzi, R-Wyo., and Jeff Merkley, D-Ore., are original co-sponsors of the Soda Ash Competitiveness Act. The United States exports approximately 57.5 percent of its natural soda ash. In 2014, the U.S. exported about $1.3 billion of soda ash, making soda ash our second-largest inorganic chemical export as measured in terms of value. For years, China has sought to capture global market share from U.S. soda ash producers through unfair trade practices. China has given its own synthetic soda ash

producers a 9 percent rebate on China’s value-added tax (VAT). In addition, China devalued its currency by 4.4 percent to boost Chinese exports. It is estimated that China’s VAT rebate and devaluation give Chinese synthetic soda ash producers a $27 permetric-ton benefit. When compared to Chinese synthetic soda ash, U.S. natural soda ash has significantly lower lifecycle emissions of carbon dioxide, sulfur dioxide, nitrogen, particulate matter, and contributors of ground-level ozone. Under current law, the royalty rate on sodium compounds (and related products) produced from federal land is 4 percent. The royalty rate will increase to 6 percent on October 2, 2015.

ICI’s net turnover for FY15 stood at Rs42.593 billion as against Rs42.698 billion last year. “This is primarily attributable to lower revenues in the polyester business, which declined 16 percent in line with a downward correction of prices across the petrochemical chain,” Khan said. “Net sales income in the soda ash business grew by 13 percent on account of higher volumes and prices, while the

life sciences business recorded a 17 percent growth in sales income. Chemical business was almost at par with last year.” The company completed the furnace oil and natural gas replacement projects at polyester and soda ash sections, thereby reducing operational reliance on expensive fuels, considerably easing the energy cost pressure. Low furnace oil and coal prices also contributed towards improved profitability.

ICI to push on with expansion Pakistan // Soda Ash ICI Pakistan Limited has said it intends to go ahead with a $90 million plan to expand its light soda ash plant in Khewra. The company, which posted full-year net profit of Rs2.276 billion, up 24 percent, for the fiscal 2015, said the phased capacity expansion will add up another 150,000 tons/annum of light soda ash at its existing 350,000 Khewra plant. The earnings per share clocked in at Rs24.65, and the

company also declared a final cash dividend of Rs6.50/share, which is in addition to Rs5.0 already paid to the shareholders. “The planned expansion will be implemented in two phases. The first phase of the project is expected to be commissioned by the end of 2017,” Saima Kamila Khan, an ICI official, said. The total installed capacity of the light soda ash will increase to 500,000 tons/annum on plant completion.

asianglass october/november 2015

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News Anaylsis

News

Recycling increases but PET gains ground R

ecycling of both glass and PET has increased across Europe, though there is still work to be done in the two sectors, according to the trade associations publishing new data. The average recycling rate for glass packaging across the European Union (EU) has hit an all-time high of 73 per cent, according to the European Container Glass Federation (FEVE), though the UK is languishing in the bottom half of performers. Data from 2013 released by the federation today shows that Denmark has the best rate in the EU-28, recycling 98 per cent of the 150,408 tonnes of glass packaging consumed in the country. Sweden, Belgium, Luxembourg and Austria all have rates above 90 per cent. The UK is the second largest consumer of glass packaging, using 2,399,000 tonnes in 2013 (behind Germany at 2,483,200 tonnes) but, according to the data, only collected the fourth most packaging (1,635,889 tonnes), a rate of 68 per cent – the 17th highest in the EU28. FEVE highlighted the progress made by Eastern European countries over the year, with several countries recording significant increases on 2012 glass recycling figures, including Estonia (60 to 72 per cent), Slovenia (82 to 87 per cent) and Croatia (49 to 57 per cent). In total, 15,465,138 tonnes of glass were consumed as packaging in the EU28 over the course of 2013, with 11,825,477 collected for recycling. FEVE says that this corresponds to over 25 billion glass containers. In 2012, more glass was collected (11,986,674 tonnes), but almost two million more tonnes were produced (17,269,089 tonnes), resulting in a collection rate of 69 per cent. Commenting on the data, FEVE President Vitaliano Torno said: “The high glass recycling rate of 73 per cent shows that the glass packaging model is the best performing closed-loop business model, but more resources need to be invested to

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improve glass recycling even further and especially in countries lagging behind.” Adeline Farrelly, FEVE Secretary General, added: “The same glass can be recycled over and over again. We call on the European Commission to acknowledge bottle-tobottle multiple recycling in the incoming Circular Economy [Package] proposal: this is key to incentivise real and sustainably sound recycling schemes in the EU and attract investments.” British Glass, the trade association for the industry in the UK, responded to the results saying: “British Glass is pleased to see an increase in recycling in 2013 in both the UK and the rest of Europe. It is unclear at this time to know how much impact budgetary cuts on Local Authorities will have on future performance. The balance between collection and quality is still an issue for the UK and with the current financial pressures it is unlikely that this will be addressed in the short term.” Other figures released by PET trade association Petcore Europe state that 1.7 million tonnes of PET bottles and containers were collected for recycling across Europe in 2014, an increase of 6.8 per cent from the 2013 rate. This represents 57 per cent of the PET packaging placed on the European market in 2014, and is, Petcore Europe says, the equivalent of 66 million 1.5 litre bottles. PET demand also increased in 2014, with 4.8 per cent more PET (by weight) entering the European market. However, the Petcore figures, compiled by PCI PET Packaging Resin & Recycling Ltd using a Europe-wide survey of agents in the collection, sorting and recycling of PET, found that the recycling industry operating rate dropped from 2013 to 2014. With an estimated installed processing capacity of 2.1 million tonnes, the 1.7 million that were recycled in Europe represents a 79 per cent operating rate, down from 83 per cent in 2013. This, suggests Petcore, ‘illustrates the challenges that the PET industry had to face in 2014, in particular the pricing throughout the recycled PET chain and

pressure from low virgin PET resin prices that occurred in the last quarter of the year’. Commenting on the PET results, Petcore Europe Executive Director Patrick Peuch said: “PET collection and recycling continue to increase and to be a success story over the last 25 years. PET is by far the most recycled plastic material in Europe. However, we can do even better and actively contribute to the European circular economy, especially as PET now penetrates new applications.” He added: “Although the collection rate increased… over the 2013 rate, it clearly illustrates the need for a twosided approach. “On one hand, our industry has to work together to align the collection processes to deliver increased recycling objectives. On the other hand, consumers have to be more engaged. Raising consumers’ awareness on the importance of collection and the value of recycling – especially in the context of the European Commission circular economy approach – and their own role in the process are key.” • Over 25 billion glass containers are being recycled in Europe to hit a 73% recycling rate. • Latest industry data published by the European Container Glass Federation (FEVE) shows that Sweden, Belgium, Luxembourg, Austria and Germany continue to be the best performers with Italy, Netherlands and Malta all showing improvement. • But Eastern European countries are growing fastest with Estonia, Slovenia, Slovak Republic and Croatia all recording promising growth rates. • FEVE president Vitaliano Torno said: “The high glass recycling rate of 73% shows that the glass packaging model is the best performing closed loop business model, but more resources need to be invested to improve glass recycling even further and especially in countries lagging behind.”

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If your hot and cold end don‘t see eye to eye...

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Tiama Hot Systems helps the hot end by providing it with information that complements or was, previously, only available at the cold end. It gives you the complete picture earlier and enables seamless communication between both ends allowing for much faster reaction times to any errors. For more information about the modular concept that helps you to make and not break glass – contact HOTsystems@tiama.eu.

tiama –advanced knowledge

ADVERTISER FEATURE

HEGLA presents new products and solutions for cost-optimization at this-year’s Vitrum.

HEGLA will exhibit at the upcoming Vitrum trade fair with a focus on new products and solutions for effecting cost-reductions and process-optimization. One product which they will be present in Italy is the linear-driven RAPIDCUT KT, a newly-developed standalone-system for cutting float glass. Producing even higher acceleration values and even more exact cutting results, the new drive technology is low-wear and requires minimal maintenance. Managing Director Manfred Vollbracht emphasizes the functionality and long-life of the construction. “Regardless of the operation time, the cutting system retains the high cutting precision.” Special features from the former version Formline KT were retained to protect the technology. Loading requires only that a segment of the table is placed in an almost vertical position. The cutting bridge remains protected in a vibration-free parking position on the edge of the RAPIDCUT KT. The electro-mechanical drive manages the tilting motion for a smooth transition to protect the material. One advantage of the standalone solution is the continuous guide rails of the linear drive which is attached to the sub-frame and is never tilted or divided. This maintains precise alignment of the drive components over the long-term according to HEGLA. As a special feature, a label applicator installed on the cutting bridge will be shown. The labels can be printed with internal processing information and then applied automatically to any position on the glass. For all those who want to expand their glass storage capacity and increase the number of glass types to which the floor and

gantry loading systems have direct access, the RAPIDSTORAGE represents an interesting new development. The glass is stored on mobile storage racks which are positioned closely together for a compact footprint. The storage racks are transported to a designated loading position by a rail-guided mobile shuttle to allow direct removal of the glass panes. The shuttle of RAPIDSTORAGE doesn’t require more space than a standard L-rack, but is able to move lateral as well as sideways. The storage location is even possible in an adjoining hall. The low installation height of the unit means that the glass can be taken from adjacent halls or areas in which the gantry loading system does not have a crane runway or does not have the necessary ceiling height. HEGLA Managing Director Manfred Vollbracht is convinced: “RAPIDSTORAGE represents the ideal solution for all glass processing companies who use a limited number of primary glass types or who are seeking to increase their range with minimal available space required.” The shuttle brings the glass required to the cutting line and moves it back when a change of glass type is required. During this time, the fixed racks are loaded from, or the returned shuttle with a new storage rack. The high-performance cutting of laminated glass and automated shape cutting in particular will be the topic of many conversations at the booth. For example, HEGLA focuses on highly automated line solutions for high throughput rates with high accuracy, where several cutting modules can be combined using a corner transfer unit or glass sheet rotating station as required. The ProLam Combi that can be used to cut float glass

Precision and reduced wear through our linear drive stand-alone system RAPIDCUT KT for float glass cutting.

With its mobile shuttle and transportable storage racks, the RAPIDSTORAGE increases the number of glass types to which the loading has direct access, thereby enabling increased storage capacity & flexibility.

asianglass october/november 2015

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ADVERTISER FEATURE

Functional reliability of an integrated system cutting line – the dynamic glass storage system RAPIDSTORAGE, the floor-loading system RAPIDLOADER and the universal cutting unit RAPIDLINE with a system breakout table.

as well as laminated glass has proven its worth as a compact cutting option. Special highlights include the Shape equipment patented by HEGLA for automated shape cutting of laminated glass. The special advantage of the patented HEGLA concept is that the motor-driven cutting wheels are guided according to the shape producing an exact scored shape even at the start and end points. The HEGLA SortJet and ReMaster are the most important solutions for reducing costs and optimizing processes. With SortJet for online production, the glass transfer between the cutting and the production of insulation glass is fully-automated, the material flow improved and greater scope for optimization releases additional potential for increasing the glass benefits. SortJet accepts the panes into the random optimized cutting sequence without the need for an operator and buffers them in the dynamic interim storage system. At the same time, the panes requested from the insulating glass production are discharged from the storage, turned if necessary and transferred in the required production sequence directly to the IG line. The flow of glass is continuous. Damage from manual handling is avoided. The HEGLA ReMaster placed above the cutting system produces significant improvements to the remnant glass handling. The usable remnants are automatically stored in multiple-lite storage shelves where they are stored until they can be put to optimal use for further cutting. The glass is then taken (no operator required) from the ReMaster and returned to the cutting operation almost without any interruption to process. Fully-automated processes enable even better use of the potential provided by the remnants. The glass benefits increase considerably in comparison to manual handling. The costs resulting from damaged panes are significantly reduced. Incorrectly placed glass which has to be disposed of later becomes a thing of the past. The sorting compressor SortJet and the remnant glass handling system ReMaster are a component part of many cutting lines, which HEGLA has developed and built in recent years.

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The SortJet for online production. Fully-automated processes mean that the glass transfer is performed in the correct orientation and required production sequence, directly to the insulating glass line. Damage from manual handling is avoided. The flow of glass is continuous.

HEGLA can use the ProLam Shape to score free forms and models made from laminated glass automatically and completely synchronously. The results are accurate and can be reproduced at any time.

They are also provided for in a number of current projects for future addition in the short-term. “Together with our customers, we are planning line solutions which are usually multi-stage, in order to provide for increasing future requirements of the system” explained Manfred Vollbracht. “The integration of the ReMaster and SortJet thus makes sense, so that they can be integrated in the system at a later point with the minimum of difficulty.” We are looking forward to your visit in hall 22, stand N01. For further details:

HEGLA GmbH & Co. KG 37688 Beverungen Tel + 49 (0) 52 73/ 905-0

october/november 2015 asianglass

ANALYSIS: Iran

Focus on Iran flat and processed on the rise

In the second part of our two-tier focus on Iran, we look at the flat and processed glass market demand and how the industry is shaping up for the future.

ontrary to what many have come to believe, U.S. sanctions on Iran have not been as crippling as they are made out to be, and of course, they could be about to come to an end. Unlike many of its neighbors who are almost entirely dependent on oil, Iran is a diversified economy with a functioning manufacturing, agricultural and service sector, albeit inefficient due to sanctions and inadequate investments. The World Bank classifies the country as “upper middle income” and despite sanctions Iran, with a GDP of $415.3 billion, is still the second largest economy in the Middle East and North Africa region. Talking about the industries, it is true that sanctions have had some adverse effects on the overall economy, but different sectors have shown different levels of fragility. While the monetary sector has been hit hard, the real sector has been more resilient due to protectionism and new trade partners, which helped the country avoid the worst outcome. Iranian Glass industry has set a sort of example of how to flourish in adverse times. Despite the sanctions and brouhaha about the slowdown in country’s economy, hyper-inflation, it has added huge capacity at regular intervals. All the three segment- flat, container and tableware has flourished in the first fifteen years of the century and have clocked more than regional glass industry growth rate. All the three segments have become big exporter of their products in the immediate neighborhood and some of the central Asian countries.

Flat glass

Dominated by three domestic flat glass producers, Iranian float glass industry is the only major glass industry globally, which doesn’t have any of the MNC float glass producer in the market. Dominated by three companies, two of which are recent entrants in float glass production, Iranian flat glass industry is a major exporter of flat glass products in the regional market. Comparatively cheaper energy costs, trained, educated and reasonably cheap

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workforce and availability of raw materials in the country needed for glass production makes Iran one of the lowest cost producers of flat glass, globally. It is interesting to note that all three flat glass producers in the country are highly backwardly integrated, giving them another key advantage over other regional flat glass in terms of cost control and quality control. No wonders that Iranian flat glass producers taking advantages of all these factors have emerged one of the largest exporters of flat glass in the regional markets. Another key advantage, which Iran enjoys is almost nil flat glass production in two of its immediate markets of Iraq and Afghanistan. Both of these countries are undergoing massive re-construction exercise, which necessitates large quantities of flat and value added glass. Due to its location and freight insensitivity of our glass industry, Iran becomes a natural choice as import destination for construction industries of these countries. In fact, these two markets have been the prime reason of setting up of three last float lines ( one of which is still under construction) in the country. In 2014, 66 % of the total exports of flat glass from Iran reached these two countries. If peace returns to these two countries, it is expected that Iranian flat glass producers will be able to significantly increase exports of flat glass to these two countries. Besides, these two markets, proximity to central Asian countries, lucrative Middle East markets and vast markets of Pakistan and India in the east, where Iranian producers are able to sell their products on the strength of their low cost production. Barring, the Middle East, Iranian producers were not chasing the markets

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ANALYSIS: Iran

n: part 2 ALL THREE FLAT GLASS PRODUCERS IN THE COUNTRY ARE HIGHLY BACKWARDLY INTEGRATED very keenly, but capacity additions in domestic float glass industry in last few years and uncertainty of Iraqi and Afghanistani markets due to violence has forced Iranian producers to look for other markets to offload the overcapacity of the domestic market. With commencement of Ardakan float glass line in May and another line coming on-stream in an year and half, these markets will play an important role for Iranian glass producers in short and medium term.

Architectural issues

Architectural glass segment in Iran has evolved in a major way in last few years. Constructions across the country have made a swift transition from use of sheet glass to much superior float and energy saving value added glasses. Though, in last three years, growth in construction due to suspension of

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country’s ambitious Mehr Housing Scheme and general state of economy, but the construction activities in the country have again started to pick up from the second half of 2014. If nuclear stalemate is concluded satisfactorily, it is expected that there would be a flurry of activities in commercial and high end residential constructions, which is expected to absorb a sizable part of current overcapacity of domestic market. The most heartening fact for the value added glass industry of the country is that there is a growing awareness towards usage of energy saving products, which provide significant advantages in the harsh climate conditions of the country as compared to plain vanilla glasses. A brisk transition to value added glass products from the basic products has spurred the growth and consumption of flat glass industry in last few years. Popularity of these products have prompted all the three major glass groups to add a dedicated coating facility to cater to huge demand of this segment.

Automotive surge

Iran has a vibrant automotive industry, which accounts for 22 % of the total domestic demand of float glass in the country. As compared to global industry average of 18 %, glass usage in automotive industry in Iran is far higher. With a lot of foreign players expressing keen interest in country’s automotive industry recently, it is expected that this figure will go up by a couple of % points in next two years. Currently, the automotive industry accounts for 10% of Iran’s GDP and 4% of its workforce, second only to the hydrocarbon industry. In fact, country’s top automotive producer Iran Khodro is the largest automobile manufacturer in the Middle East. Although Iran’s automobile output has dropped from 17th to 20th in the world since 2008 — the year sanctions were reinforced. If you are not a keen Iran observer, you would be surprised to know that the country still produces more cars than countries such as Italy, Austria, Australia, and the Netherlands.

october/november 2015 asianglass

ANALYSIS: Iran

Major players

Dominated by three major glass groups, Iranian flat glass industry has seen major activities from all the three players in terms of capacity additions and setting of value added glass processing facilities. While, country’s oldest and largest producer, Kaveh Glass Group currently dominates the flat glass industry by virtue of its five flat glass production facilities. However, a relatively new company, Sahand Industrial Group has quickly covered some grounds by establishing its second flat glass line a few months back. Another float line , which become operational a couple of years back has also limited the dominance of Kaveh Glass Group.

Kaveh Glass Group

Kaveh Glass Group is the largest flat glass producer in Iran. With its five flat glass lines ( four float and one sheet line) its has an installed capacity to produce 2560 TPD of flat and figured glass. Kaveh Glass Group consists of a host of companies, which are directly or indirectly engaged in glass industry. The group has interests in glass industry from from raw materials processing, supply to production of finished glass products. Besides flat glass, the company has a mirror production plant with an annual capacity of 4,000,000 sqm of mirrors. Group’s other companies also produces 500,000 tons per year of silica sand, dolomite and feldspar and 200,000 tons per year of soda ash to meet the raw material needs of glass producing companies of the group. Saveh Jam, the first glass production company of the group, which becoming operational in 1990’s produces clear sheet ( 250 TPD) and figured glass ( 125 TPD) with an installed capacity of 375 TPD. This unit was followed by first float glass plant of the country, Iran Float Glass in 2000. Located at Kaveh industrial City, about 120 Km far from Tehran, Iran Float Glass has an installed capacity of 500 TPD. Kaveh’s third flat glass line, Shisheh Taban was established a couple of years later. Located at Kaveh Industrial City has an installed capacity of 265 TPD of flat and figured glass ( Flat 135 TPD and Figured 130 TPD). Third Float Line Of Kaveh Glass Group by the name Kaveh Float Glass commenced operations in 2004. The 700 TPD line was the largest in Iran at the time of its installation and can produce float glass in regular and jumbo sizes for both architectural and automotive applications. The company installed an online coating machine at this facility in 2005 to produce reflective , solar control and low e glass. This line was followed by Asa Float Glass line, which commenced operations in 2009. 700 TPD line produces float glass and mirror in different colors. In 2010, a coated facility was installed to offer coated glass to Iranian and foreign customers.

New line

Kavian Float Glass, the fifth float line of Kaveh Glass Industrial Group is currently under construction. Located near Mashhad in the North-Eastern part of Iran, this plant will supply float glass to the North –Eastern part of Iran and the neighbor countries. Like Kaveh’s other float glass plants, EPC for this this project is being performed by Kaveh’s subsidiary company, Petro Kaveh. The float line is scheduled to start production on December 2016. Design and engineering phase has been completed and procurement of pre- processing machineries is underway. The line is designed to be capable of delivering maximum flexibility so that the factory will be able to produce automotive quality float glass.

Kaveh Glass- Overseas Expansion

Kaveh Glass is setting up a float glass plant in Kazakhstan. The company signed an agreement with Investment Fund of Kazakhstan (a subsidiary of National Management Holding Baiterek) in mid 2014. Coming up with an investment of USD 284 million, Kaveh Glass will have a 51 % share in the project, while Kazakhstan will have a 49 % share. Construction of the new plant started late last year in the newly created industrial zone of Kyzylorda. The float plant with an installed capacity of 197,000 tons per annum is scheduled to commence commercial operations in the third quarter of 2017. The plant will produce products that comply with the European quality standard. It will also produce

asianglass october/november 2015

tempered glass (3,700 tons per year), mirrors (3 million square meters per year), windows (7,700 tons per year) as well as energy-saving glass with magnetron sputtering (11 million square meters per year). It is expected that 70% of all the products will be sold on the Kazakhstani market. The rest will be exported, mainly to the countries of Central Asia (Uzbekistan, Kyrgyzstan, Turkmenistan and Tajikistan). Production and Exports of Flat Glass in Iran in Last Four Years 2014

2013

2012

2011

1.04 m t

886,350 t

864,180 t

745,125 t

224,125 t

113, 110 t

101,400 t

84,200 t

Production of Flat Glass Exports of Flat Glass Imports

Subsidiaries of Kaveh Glass Group Company

Description

Saveh Jam

Sheet and Figured Glass Producer

Capacity 375 TPD

Iran Float Glass

Float Glass

500 TPD

Shisheh Tabab

Flat and Figured Glass

265 TPD

Kaveh Float Glass

Float Glass

700 TPD

Asa Float Glass

Float Glass

700 TPD

Kavian Float Glass

Float Glass

Under Construction

Group companies of Sahand Industrial Group Company

Description

Capacity

Sahand Float Tabriz Company

Float Glass Plant

650 TPD

Azar Glass Industrial Company

Flat Glass

350 TPD

Sahand Mirror Tabriz Company

Mirror Glass

5000 sqm/ day

Sahand Jame Tabriz Company

Figured Glass

100 TPD

Sahand Silica Tabriz Semnan Soda Ash Company Imeni Ark Tabriz Company

Silica Sand

150,000 TPA

Soda Ash

240,000 TPA

Processed Glass

Sahand Industrial Group

With commencement of its second flat glass line in May 2015, Sahand Industrial Group has joined the big league of flat glass producers in the country and region. Inaugurated by Iranian President Hassan Rouhani in Northwestern Iran at Tabriz, Sahand Float Company in Tabriz has an installed capacity to produce 650 tons per day of float glass for architectural and automotive industries. With the newly installed float glass plant, Sahand Industrial Group has achieved an installed capacity of 1000 TPD of flat glass. Its other flat glass unit, Azar Glass has an installed capacity of 350 TPD of glass per day. Two other subsidiaries of the company are engaged in production of figured and value added glass. Another group company, Sahand Silica Tabriz mines and process silica sand needed for glass and other industries. Semnan Soda Ash, another group company is a leading soda ash producer in the country. With an installed capacity of 240 thousand tons per annum, Semnan meets the soda ash demand of group’s glassmaking companies and enable them to keep a tab on total cost of production. Sahand Group’s first float glass venture, Azar Glass industrial Company was set up in 2005. The company has gained huge market for its products

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ANALYSIS: Iran

in European countries, Russia, Turkey, middle Asia, Iraq, and Afghanistan with products that conform to international standards. About 40% of products of this Company become processed in Imeni Ark Company and Ayne Sahand Company remaining products mainly are exported and only small amount is supplied to the domestic markets. Besides two flat glass plants, Sahand Industrial Group operates three value added glass plants to meet the ever increasing demand of processed glass, mirrors and figured glass in the country.

Ardakan Float Glass Corporation

The latest entrant in Iranian float glass industry, Ardakan Float Glass Corporation was established in 2011. Located at Ardakan city of Yazd province, the company commenced commercial production of its float plant in early 2013. Inaugrated by the then President of Iran, Mahmoud Ahmadinejad, Ardakan Glass has an installed capacity of 220,000 tons of float glass per annum. Set up with an eye of the lucrative export markets, Ardakan Float Glass has many advantages over its competitors in terms of location. City of Ardakan is located at the junction and loading of four main railways of Iran ( Tehran, Isfahan, Mashhad and Bandar Abbas). The city also lies on the North- South and East- West transit road, making it at the crossroad of East, West, North and South. Currently, the company exports its products to Europe, Russia, Persian gulf countries, Pakistan and India. Much like its two other counterparts, Ardakan Glass is also a highly backward integrated flat glass producer. The company owns silica, feldspar, limestone and dolomite mines and processes these materials in the vicinity of its float glass plant. AFGC’s silica mines are located at about 85 Km Southwest of its float plant at Naein district. The ore content of the mine is unconsolidated sand with sedimentary region that is geologically a part of Iran’s top Quartzite formation. AFGC claims “ The high quality of silica ore and extremely large amount of deposits makes these mines as one of the most reliable and valuable resource in production of float glass.” AFGC’s feldspar mine is located about 80 Kms Northeast of its float plant at Anjir district, while its dolomite mines are located at about 330 Kms away from the plant in Tabas district of the country. AGFC’s Limestone mines are located about 25 Kms away from the plant. Company’s crushing and dressing plants for above mentioned raw materials is located on a 200,000 sqm of industrial plot in the immediate vicinity of its float glass plant. This facility consists of three workshops for producing silica, feldspar, dolomite and limestone powders. Installed capacity of the processing plant is 1500 TPD of washed, dressed and graded silica powder, 300 TPD of dolomite powder and 240 TPD of dolomite powder.

Processed glass

Glass processing sector in Iran has equally benifited from setting up of number of plants in its flat glass sector. As availability of float glass become easy a number of downstream glass processors have emerged in the major cities of the country. All the three major flat glass producers too have stressed heavily on the downstream processing and have set up one or more units in their float glass manufacturing premises. Standalone glass processors have added significant capacities in past couple of years to serve the varied and ever increasing of value added glass from the aware and demanding customers.

asianglass october/november 2015

Leading glass processors Company

Description

Location

Mirror and Processed Glass

Esfahan

Aegh Boloori Glass Industrial Company

Processed Glass

Tehran

Miral Glass Company

Processed Glass

Tehran

Gilan Glass Company

Processed Glass

Tehran

Behnoor Safety Glass Company

Processed Glass

Tehran

Esfahan Zarin Mirror Company

Saipa Safety Glass

Automotive Glass

Al Borz

Kabir Safety Glass

Automotive Glass

Semnan

Jam Imen Safety Glass Company

Processed Glass

Tehran

Shishe Nashkan Industrial Company

Processed Glass

Karaj

Iran Glass Technology

Processed Glass

Mashhad

Car Glass Company

Automotive Glass

Tehran

Eshfan Shahab Glass Company

Processed Glass

Segzi

Lifting sanctions to lower fuel price? Lifting sanctions related to Iran’s nuclear program will have a significant impact on the world oil market, the Iranian economy and Iran’s trading partners. Iran’s full return to the global market will eventually add about a million barrels of oil a day, lowering oil prices by US$10 per barrel next year, according to the World Bank, which also expects economic growth in the country to surge to about 5% in 2016 from 3% this year. If the agreement reached on July 14, 2015 is ratified, sanctions on Iran by the United States and the European Union will be removed in return for Iran decelerating its nuclear program. The World Bank’s Middle East North Africa (MENA) Quarterly Economic Brief, Economic Implications of Lifting Sanctions on Iran, sees Iran’s capacity to export more oil as speeding its economic recovery. But the report projects lower export earnings and revenue for MENA’s other oil exporters, such as the Gulf States and Libya, while oil importers in the region, such as Egypt and Tunisia, will benefit from lower world prices. “Just as the tightening of sanctions in 2012 led to a sharp decline in Iran’s oil exports and two years of negative growth, we expect the removal of sanctions to boost exports and revive the economy,” said Shanta Devarajan, World Bank Chief Economist for the Middle East and North Africa region. Iran’s cost of doing trade will also fall, increasing not just the volume but the value of its oil trade and non-oil trade. The Bank’s report estimates that exports from Iran will eventually increase, too, by about US$17 billion, which is about 3.5% of its GDP. Britain, China, India, Turkey and Saudi Arabia are among the countries most likely to see the largest rise in post-sanctions trade with Iran. Foreign direct investment may increase to about US$3 billion a year, double the current rate but still lower than its peak in 2003. “Since the framework agreement of April 2015, we have seen increased interest from multinational companies in investing in Iran, especially in the oil and gas sector,” said Lili Mottaghi, World Bank MENA Economist and the author of the report. ”That trend is likely to accelerate with the lifting of sanctions, providing much-needed capital and upgrading of technology to Iran’s oil sector.” The lifting of sanctions represents an economic windfall to the Iranian economy. Iran’s experience with managing previous oil windfalls is sobering. The real exchange rate appreciated undermining non-oil exports. Governments facing such economic windfalls have the opportunity to put in place a policy framework that puts the economy on a path of sustained growth.”

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ANALYSIS: Container Glass

Keeping a li container glass production cost in South East Asia

AG examines how market pressures are forcing radical re-thinks of production expenditure in ASEAN’s container glass sector.

T Kemasindo Ampuh is known as a manufacturer of small glass bottles, jars, beer mugs and other tablewares and glass articles under brand name KAEMA GLASS. The 70,000 tons a year production capacity mid-scale glass container producing plant is proud to be an efficient manufacturer in a location in Jakarta, in Asia’s most reputed glass manufacturing country of Indonesia. Recently one of its two almost equal capacity furnaces went into scheduled overhauling, while the owners were counting days to let it resume operations. But, to their surprise, now they have discovered a better option: it is more profitable to keep it waiting at this moment, just to save money, because, it is no more viable with existing price of natural gas. “We are not in a hurry to start it given the state of the world economy at the moment,” said Harris Hendraka, Operations Director at Kemasindo Ampuh. The existing price of natural gas cannot help resume the furnace profitably, explained Harris. “Indonesia has one of the highest price of natural gas in the world, despite being a natural gas producing country,” he lamented. While the Indonesians are in trouble, their cousins in South East Asia are doing good business. Thanks to the fall in oil and gas price and the ease in raw material sourcing in most of the glass producing countries of the Association of South East Asian Nations (ASEAN). The irony is that once the region’s cheapest country, Indonesia, in terms of production cost for container glass manufacturing, is now becoming expensive due to escalation of the costs of natural gas and basic raw materials in which the country is rich enough and a natural choice for investment. Indonesia is now in its bad time in global competition in cost effective production of glass containers, according to Eka Tjandranegara, President Director of PT Mulia Industrindo Tbk, owning company of Muliaglass Container Division (MGC), Indonesia’s leading container glass manufacturer with large-scale production plants. In rest of the ASEAN bloc, the glass container manufacturers are continuing to enjoy the benefit from the lower energy and raw material prices after recent decline. The glass manufacturers in Indonesia believe that the situation could return to normalcy if the state supplied natural gas price is revised by the state-run PT Perusahaan Gas Negara (PGN) from the present US$7.7-9.1 per MMbtu, highest in the region.

asianglass october/november 2015

Reduction pressures

Muliaglass is now under pressure to reduce production cost by exploring innovations in cost efficient production efforts as its existing production cost is affected by increased energy cost and weaker Indonesian currency, Rupiah, in domestic and export markets both. Its products are facing hard competition from the alien products both at domestic and export markets, despite the fact that MGC of Mulia Industrindo is already known as low-cost container glass producer for its cost-effective production efficiency. “The current government is reviewing these prices and we might see a decline in local gas price for high energy-consuming industries like glass, among others, such as, ceramics, steel, fertiliser, etc, soon,” Harris told Asian Glass, optimistically. “Local market now is picking up and I would say better than last year because a lot of glass manufacturers cutting their capacity and eventually the price went up,” he added. In Thailand, Vietnam and Philippines, which are not oil and natural gas rich like their ASEAN sisters Malaysia and Indonesia, the container glass manufacturers were benefited greatly by the decline in price of oil and natural gas in the world markets in the recent time. Production cost was highly balanced with exorbitant cost of natural gas in Indonesia and expensive labour of Malaysia. Companies like San Miguel Yamamura Packaging Corporation (SMYPC) of Philippines and its Vietnamese subsidiary, San Miguel Yamamura Haiphong Glass Co Ltd, which were previously under cost cutting pressures to remain competitive, are now comfortable in competition with other ASEAN glass container manufacturers, according to the sources in the industry. Leading packaging glass manufacturer SMYPC in recent years was relying more in upgrading production technology to stay in the Asia Pacific markets, while O-I was aggressively expanding production and marketing in Asia. Fuel and labour now account for 50-55 percent of the total cost of production in all five ASEAN container glass manufacturing countries. In all the countries fuel accounts for 30-40 percent, while labour cost accounts for about 15 percent of the total, except Malaysia, where wages and salaries cost about 25 percent of the total production cost, according to the industry source estimates. The cost of composition of minerals, chemicals and other raw materials are almost same in the regional countries. As the prices of such inputs are rising, their share in production cost is also increasing from the current stake of about 30-35 percent.

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ANALYSIS: Container Glass

id on it… The cost of packaging accounts for 10-12 percent, and other consumables including electricity, shares about 8-10 percent. An industry source in Indonesia estimates that at the moment fuel (natural gas) accounts for 35-40 percent of the total production cost. Previously gas price was competitive to that of Malaysia for which the Indonesian glass manufacturers were better competitive in the Asia-Pacific region, attracting global leader like O-I to invest in Indonesia for distribution of glass containers throughout Asia and Australia-New Zealand. The industry source estimates that the cost of composition, such as, silica, cobalt, etc, accounts for about 35 percent in Indonesia, while the stake of the labor cost is about 15 percent. Packaging accounts for 10-12 percent and others, such as, electricity, consumables, etc, about 5-8 percent in the total cost of production of glass containers in Indonesia.

Thai efficiency

South East Asia’s major packaging glass group Thailand-based Berli Jucker Public Company Limited (BJC)’s flagship manufacturing company, Thai Glass Industries Public Company Limited (TGI), and the BJC Group’s other major Thai packaging glass manufacturing subsidiary, Thai Malaya Glass Company Limited (TMG), continue to boost production performance and keep the cost of production competitive despite various adverse impacts on the consumption of soft and hard drinks in present political turmoil in the country. BJC Group’s subsidiaries, Malaysia based Malaya Glass Products Sdn Bhd, the biggest glass manufacturer in Malaysia, and Vietnam based Malaya Vietnam Glass Limited, were equally good performers in cost management in two different economies, with cost of fuel, labour and raw material accounting for about 80-85 percent, a little higher than Thailand’s around 80 percent. Since BJC increased the Group’s production capacity to 3,400 tons a day and closed glass factory in Rajaburana to open new factory in Saraburi province and some customers decided to have their own glass manufacturing factories, it is forecasted that this year the packaging glass supply will be higher than its demand raising inventory. This could result in affecting stable production cost and leading to aggressive competition in the coming months. Last year was also affected by a slowdown, which impacted the domestic

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glass packaging business, especially on drinks and beverages. Net profit was decreased due to higher cost of production following increased cost of raw materials, cullet, and energy. There was also cost of shifting to Saraburi following closure of Rajburana glass production facility. Production costs at BJC glass factories are considered to be one of the most efficient in the ASEAN region. “With overall high production capacity in three countries, Thailand, Malaysia and Vietnam, and efficient cost of production, BJC is one of the most advanced container glass manufacturers in Southeast Asia,” said BJC Group’s Chairman Charoen Sirivadhanabhakdi. When it comes to efficiency in production cost in larger packaging glass manufacturing, Thailand also has the region’s largest operator, Bangkok Glass Public Company Limited (also known as Bangkok Glass Industries or BGI). BGI Group is continuously expanding production capacity with the growth of the Thai economy and handling the production cost most efficiently, even in a volatile econo-political situation in Thailand. However, like others, BGI is a little skeptical about the current lower consumption growth and increase of glass container production by other manufacturers. It uses highly efficient technologies to minimize production cost, but the existing political situation-impacted slower consumption in its domestic market is not much related to technology for a suitable solution. The Group’s cost effective production of glass containers was the main driving force to expand continuously. BGI Chairman Vapee Bhirom Bhakdi believes that in his flourishing country, the company’s production capacity now has grown to 3,635 tons per day because of efficient production cost, and the trend will continue with implementation of future plans parallel to the consumer growth in the expanding economy. BGI is one of Asia’s most technically advanced glass container manufacturer, and is a subsidiary of Boon Rawd Brewery, known internationally for Singha Beer since 1933, with Saint Gobain Oberland (SGO) as the Group’s largest foreign shareholder.

Indonesian unviability

When the production cost continues to remain efficient, even during the volatility in demand for the packaging glass as well as in cost of energy, raw materials and continuous increase of wages and salaries of the employees, the Thais’ largest rivals in the region, the Indonesians are faced with uncertainty in staying at their once proven profit making country.

october/november 2015 asianglass

ANALYSIS: Container Glass

In an environment of accelerated energy cost in Indonesia, the latest investment of O-I in its Jakarta plant is strategically designed to minimize production cost. It involved efforts to have innovative production of cost cutting light weight and stronger packaging glass to reduce production cost at glass bottle manufacturing and provide better quality and cost reducing glass bottles to the packaging industries. Some of the glass container manufacturers are worried about inventories and thinking of hard control in utilizing production capacity, until the government come forward with its stimulus for energy-intensive industries, including glass and ceramics, by providing lower prices of the state supplied natural gas. The middlescale container glass manufacturers feel the existing energy cost is unbearable. “When the cost of natural gas accounts for 40 percent of the production cost it reduces the economic viability of a manufacturer to an unsustainable condition,” said Harris. He said gas, oil and electricity now account for almost a half of the production cost. “In a county like energy-rich Indonesia,” the gas price needs to be revised urgently,” added Harris, who is also the Chief Treasurer of Indonesia Glass Manufacturers Association. According to Muliaglass Container Division, the price of gas remains high and it is a major challenge in glass manufacturing as it intensively depends on highusage of energy. Mulia’s efficiency in production cost management is largely dependent on stable supply of energy and raw materials. “Uninterrupted supplies of raw materials and natural gas from PGN are crucial in continuity of production process,” said Mulia President Director Eka Tjandranegara. The group’s key official said increase of production cost was also as a result of weakening of Indonesian currency Rupiah against the US dollar. The production cost became expansive compared to the rival alien products in both domestic and export markets. The company is now under severe pressure to reduce production cost by exploring innovation through researches, said the company. An Indonesian source said the average price of gas in Indonesia is about US$9.1. The price varies between regions. In a factory in Jakarta, the price is lower than that of the average US$7.7 per MMbtu. The source said such prices are not competitive with other countries of the ASEAN region, where, reportedly, the Vietnamese are burdened with high rate of US$7-7.3, while the

asianglass october/november 2015

WE ARE NOT IN A HURRY TO START IT GIVEN THE STATE OF THE WORLD ECONOMY AT THE MOMENT manufacturers in Malaysia, Philippines, Singapore and Thailand have prices ranging from US$3.8 to US$5.5. The Thais have cheapest average rates, according to the estimates available with the source. The price cut so far demanded was officially proposed and being studied by the government since the economy is weak and a lot of high energy consuming industries like steel, ceramics, glass, etc, cannot sustain the price anymore. It is reported that the government is taking this measure in its attempt to strengthen the national economy and eventually bounce back. Kemasindo Ampuh’s Operations Director Harris is waiting for a positive step in this respect as his furnaces cannot be viable economically with the existing price of natural gas. “Since we are billed in US dollar and our prices keep rising due to the weakening of Indonesian Rupiah, it is unbearable in the production cost,” said Harris. “Now we are trying to shift our markets to exports since the US dollar is so strong and it would give us more advantage than selling it locally,” he said. “As we know the international market is also very weak so we are now balancing 50:50 between locals and exports,” he added.

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ANALYSIS: Container Glass ASEAN imports of container glass in quantity ASEAN importers of glass carboys, bottles, flasks, jars, pots, phials and other containers under HS Code 701090 with quantity in tons ASEAN bloc importers of HS Code 701090 products of glass carboys, bottles, flasks, jars, pots, phials and other containers World

2010

2011

2012

2013

2014

Imported quantity, Tons

No Quantity

11,996,147

11,295,489

Association of South-East Asian Nations (ASEAN) Aggregation

365,338

419,241

569,856

547,634

Philippines

129,607

143,185

111,250

123,552

120,029

Indonesia

73,806

85,278

109,300

129,280

105,364

Myanmar

17,350

42,639

39,889

56,276

83,167

Vietnam

25,445

32,184

No Quantity

36,505

78,935

Thailand

33,136

40,018

127,902

111,663

53,781

Malaysia

45,868

17,331

36,153

44,476

39,205

Singapore

26,219

32,475

No Quantity

27,769

31,303

Lao People’s Democratic Republic

6,001

16,633

No Quantity

30,255

26,914

Cambodia

7,829

9,387

13,212

10,002

8,905

111

220

Brunei Darussalam

Sources: International Trade Centre (ITC), Geneva, calculated estimates based on UN COMTRADE statistics.

ASEAN imports of container glass in value ASEAN importers of glass carboys, bottles, flasks, jars, pots, phials and other containers under HS Code 701090 with value in million US dollars. ASEAN bloc importers of HS Code 701090 products of glass carboys, bottles, flasks, jars, pots, phials and other containers

Imported value in million US$ in 2010

World

Imported value in million US$ in 2011

Imported value in million US$ in 2012

Imported value in million US$ in 2013

Imported value in million US$ in 2014

7,575.374

9,032.546

8,707.605

9,332.417

9,700.876

228.945

294.965

331.191

355.411

357.039

Vietnam

28.538

34.787

36.783

39.739

72.784

Indonesia

49.142

56.502

68.510

81.803

71.460

Philippines

52.605

69.421

60.572

65.588

60.715

Thailand

30.429

37.125

78.872

68.302

43.768

Singapore

28.987

34.807

26.185

29.534

32.071

Myanmar

9.070

12.398

12.920

20.186

30.849

Malaysia

Association of South-East Asian Nations (ASEAN) Aggregation

23.997

39.716

36.444

31.853

29.640

Lao People’s Democratic Republic

2.107

5.441

4.122

13.280

11.281

Cambodia

3.810

4.381

6.528

4.879

4.278

Brunei Darussalam

0.260

0.387

0.255

0.247

0.193

Sources: International Trade Centre (ITC), Geneva, calculated estimates based on UN COMTRADE statistics.

Leading ASEAN container plants O-I Jakarta Plant Location: Cakung, Jakarta, Timur, 13960, Indonesia Products: Glass containers for glass packaging Markets: Domestic and export markets Others: O-I Jakarta produces around 2.3 million glass bottles per day for some of Indonesia’s leading food, beverage and pharmaceutical brands. O-I covers the whole range of bottles for spirits, vodka, whisky, rum, gin, tequila, aperitifs, etc, and for glass containers for beer, wine, sparkling wine and champagne, mineral water and liquors, with various sizes, shapes and colours.  Muliaglass (Muliaglass Container Division (MGC) of PT Mulia Industrindo Tbk) Location: Lemah Abang, Cikarang-Bekasi 17550, Jawa Barat, Indonesia Products: Glass containers, including glass bottles, jars and beer mugs. Markets: Domestic and export markets Others: MGC can produce up to 185,000 tons per year of glass containers, including flint glass packaging for food and beverage products, and beer mugs, and amber and green glass bottles for beer, energy drinks, and pharmaceuticals.

asianglass october/november 2015

 PT Kemasindo Ampuh (KAEMA GLASS) Location: Gunungh Putri Bogor 16961, (Gunung Putri Cibinong 16961), Jawa Barat, Indonesia Products: Glass containers and glass tablewares, including beer mugs Markets: Domestic and export markets Others: Annual production capacity of Kemasindo Ampuh is 70,000 tons of glass containers including glass bottles for packaging and other glass containers and glass table wares.  Malaya Glass Products Sdn Bhd (MGP) Location: Johor Bahru 81200, Malaysia Products: Glass containers for glass packaging Markets: Domestic and export markets Others: MGP is a joint venture of MGP, BJC and O-I. It manufactures and sells glass containers for breweries, food companies, and soft drinks manufacturers in Malaysia, South East Asia, China, and Australia. 

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ANALYSIS: Container Glass ASEAN exports of container glass in quantity ASEAN exporters of glass carboys, bottles, flasks, jars, pots, phials and other containers under HS Code 701090 with quantity in tons ASEAN bloc exporters of HS Code 701090 products of glass carboys, bottles, flasks, jars, pots, phials and other containers World

2010

2011

2012

2013

2014

Exported quantity, Tons

No Quantity

11,874,415

12,163,687

Association of South-East Asian Nations (ASEAN) Aggregation

449,490

285,648

254,092

267,761

298,441

Thailand

135,538

105,928

73,400

108,621

116,293

Malaysia

45,850

67,579

79,628

69,748

86,721

Indonesia

83,965

76,534

85,181

48,433

53,163

Philippines

31,135

31,983

15,809

14,572

17,274

7,081

3,571

No Quantity

13,355

13,409

No Quantity

12,986

11,484

Cambodia

Brunei Darussalam

145,916

Vietnam Singapore Lao People’s Democratic Republic

Myanmar

Sources: International Trade Centre (ITC), Geneva, calculated estimates based on UN COMTRADE statistics.

ASEAN exports of container glass in value ASEAN exporters of glass carboys, bottles, flasks, jars, pots, phials and other containers under HS Code 701090 with value in million US dollars. ASEAN bloc exporters of HS Code 701090 products of glass carboys, bottles, flasks, jars, pots, phials and other containers World

Exported value in million US$ in 2010

Exported value in million US$ in 2011

Exported value in million US$ in 2012

Exported value in million US$ in 2013

Exported value in million US$ in 2014

7,854.226

8,864.166

8,945.798

9,644.818

9,957.600

Association of South-East Asian Nations (ASEAN) Aggregation

356.324

165.107

155.225

162.323

163.345

Thailand

246.157

43.882

34.529

50.264

50.566

Malaysia

26.301

36.861

41.220

37.342

43.514

Indonesia

47.986

49.975

55.094

39.423

39.139

Philippines

18.525

19.509

9.540

14.855

11.792

Singapore

11.432

12.244

9.168

10.174

10.036

5.883

2.584

5.651

10.245

8.247

0.003

0.018

0.034

0.001

0.016

Myanmar

0.028

0.042

0.018

0.002

0.001

Brunei Darussalam

0.012

0.010

0.001

Vietnam Lao People’s Democratic Republic Cambodia

San Miguel Yamamura Packaging Corporation (SMYPC) Location: Mandaue City, 6014, Cebu, Philippines Products: Glass containers for glass packaging Markets: Domestic and export markets Others: San Miguel Corporation and Japan’s Nihon Yamamura Glass Company Ltd joint venture, SMYPC, offer normal bottles, decorated bottles, novelty bottles, custom-designed bottles and jars and stock glass bottles in amber, green and flint.  Bangkok Glass Public Company Limited Location: Ratchadaphisek Rd., Klong Toey, Bangkok 10110, Thailand Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Bangkok Glass Public Company Limited, also known as BGI (Bangkok Glass Industry Co) Group is the largest glass container manufacturer in South East Asia, and is a subsidiary of Boon Rawd Brewery, known internationally for Singha Beer since 1933, with Saint Gobain Oberland (SGO) as the Group’s largest foreign shareholder.  Berli Jucker Public Company Limited (BJC) (Thai Glass Industries Public Company Limited (TGI) and Thai Malaya Glass Company Limited (TMG) Location: Principal production unit at new site in Saraburi, Thailand

asianglass october/november 2015

Products: Glass containers for glass packaging Markets: Domestic and export markets Others: BJC’s flagship Thai Glass Industries Public Company Limited (TGI) and its other Thai unit Thai Malaya Glass Company Limited (TMG) have daily production capacity of 1,745 tons and 990 tons, respectively, to cater BJC’s own drinks, beverage and healthcare packaging demands and to meet the customers in other packaging industries.  Malaya Vietnam Glass Limited Location: Ho Chi Minh City, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Malaya Vietnam Glass Limited manufactures and distributes glass containers serving producers of beer, beverages, and foods.  San Miguel Yamamura Haiphong Glass Co Ltd Location: Ngo Quyen District, Hai Phong, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: San Miguel Yamamura Haiphong Glass Co Ltd operates as a subsidiary of the Philippines based San Miguel Yamamura Packaging International Limited of San Miguel group.

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ANALYSIS: China

Tough time China starts to feel the pressure

s this year started, the glass industry which was suffering problems such as overcapacity, insufficient demand and downward market pressure, implemented industrial policies to ease the pressure from overcapacity, and a steady situation with some progress was maintained. However, as the structural restructuring and upgrading had just begun, adding the impact of the market, the whole industry remained relatively low in terms of economic performance and fragile in recovery.

Performance

According to preliminary statistics, there were 1,139 scaled glass enterprises (main business revenue above RMB20 million) with main business revenue of RMB260.2 billion, growing by 7.5% compared with that in last year, and a profit of RMB13.56 billion, down by 15.2%. Of those, profit from flat glass enterprises accounted for RMB1.49 billion, down by 65% year on year, and output of flat glass reached 790 million cases, up by 1.5% year on year. Based on statistics of key enterprises under survey by the Association, the economic performance is as follows.

Slowdown

By the end of December 2014, there were 91 float glass manufacturers and 320 production lines in China with a capacity of 1.158 billion cases per year. Among which 235 lines were in operation with a capacity of 917 million cases per year, 0.7% higher than that in the beginning of the year, 81 lines were in cold repair with a capacity of 241 million cases per year, 45.52% higher than that in the beginning of the year, 25 lines were newly fired with a capacity of 108 million cases, down by 21% compared with that in last year and 11 lines were re-fired. The operating capacity increased by 410,000 cases per year, roughly the same as that at the beginning of the year.

Output

According to the survey on key float glass enterprises in China by the Association, the output of float glass in 2014 reached 635.88 million cases, growing by 7.3%

asianglass october/november 2015

compared with that in last year. From the perspective of monthly output, the growth was slowing down and even more after May 2014. The immediate reason is that the spot market prices for glass continued to decline and so did the revenues. Companies adjusted production by advance cold repair and postpone firing. However, the ultimate reasons are overcapacity, sluggish demand and regional imbalances, and it is estimated that the decrease of output growth will get sharper in 2015.

Sales pressures

Due to high production base and weakening demand from real estate market, the market saw decline in float glass sales. In 2014, 626.53 million cases were sold by the key float glass manufacturers, up by 44 million cases. Nevertheless, the inventory was in the highest level of history for recent years, with 43.94 million cases by the end of the year, up by 3.82 million cases. The sales-output ratio is 98.58%, as last year. Due to the features of the glass production and uncertainties of downstream market, there will be more pressure on inventory in 2015. However, in view of mid-long term, the reduction of capacity utilization rate will force the industry to make regulation on capacity, making inventory maintain at a proper level so as to mediate the overcapacity pressure and achieve development in a coordinated way.

Price falls

As prices continued to fall in 2014, the weighted average sales price of key enterprises was only RMB56.18 per case, down by RMB9.97 per case year on year. The market showed the following characteristics. Firstly, in terms of variety, special variety and high quality float glass remained high in price, particularly high quality float glass which was roughly RMB15 per case higher than that of average float glass, and automobile windshield glass as well as high-end float glass enjoyed even higher price. Secondly, there was no obvious distinction between peak season and off season. Except that the price in January was higher than that in the same period of last year, the prices during the rest of months were lower than those in the same period of last year. Thirdly, in terms of region, prices decreased progressively from south to north with south China the highest and northeast and north China the lowest in price.

www.asianglass.com

ANALYSIS: China

es ahead? Capacity issues

The serious problem concerning overcapacity is yet to be solved. The industry is in absolute surplus and it is very hard to change the situation in a short period. At present, the total capacity is as much as 1.29 billion cases per year, far more than the market demand. Although the growth rate of the capacity has been contained, it is still increasing. 25 new production lines were fired, adding capacity of 108 million cases per year to the existing total capacity. Nevertheless the growth rate was much lower than that in 2013. 81 lines were suspended and under cold repair, reducing capacity of 241 million cases per year. Therefore, taking into all situations into account including new lines into operation and lines in cold repair, suspension and re-firing, there was still a net increase capacity of 410,000cases per year. Secondly, earnings went down significantly. Main business revenues of glass industry in 2014 were RMB260.2 billion, up by 7.5%. Among which, revenues of flat glass were RMB69.6 billion, down by 2.5% year on year. Total profit was RMB13.56 billion, down by 15.52%, of which profit of flat glass was RMB1.49 billion, down by 65%. Many enterprises still suffers losses and particularly 29.5% of flat glass enterprises were in loss. These statistics not only reveals the declined economic benefits of the industry, but also indicated difficulties for improving performance in 2015. Thirdly, structural adjustment is slow. In terms of product structure, at present ordinary float glass was overcapacity. However, there was structural shortage. For instance, Some of electronic glass, automotive glass and high grade architectural glass still have to be imported. In terms of technological structure, products manufactured under the same scale and qualities consume 10% more energy than those of foreign products. Coal tar and petroleum coke powder were used as fuel to produce medium and low grade float glass, which pollute the air. In terms of company structure within the industry, industrial concentration is low. There are 91 float glass enterprises with average capacity of 12 million cases per year, of which however merely no companies can play a leading role in international market, with no strong resistance to risks, neither do they can manage to lead the development of the industry. Fourthly, standards and regulations are not implemented strictly and unfair competition exists. â&#x20AC;&#x153;Standards on air pollution and emission of flat glass industryâ&#x20AC;? are not followed in a strict way. Some big enterprises increased production costs by using clean energy through technological upgrading and denitration and dedusting facilities, while some others never got fined although use inferior fuel and have not yet improved their environmental protection facilities, which leads to unfair competition. As to the implementation of Standards on Flat Glass, market regulations are not well in place, with manufacturing without license and producing nonstandard products. Some enterprises still enjoy favorable policies concerning land use, labor and tax reduction, which make some others disadvantaged and, causing competition disorder.

www.asianglass.com

Output of tempered glass in 2015H1 Province China total

Output (m2)

Growth rate (%)

199,075,444

5.94

Beijing

3,553,676

-3.53

Tianjin

85,210

-6.93

7,386,636

-8.70

234,067

-63.36

Hebei Shanxi Inner Mongolia

25,292

-4.94

1,510,963

-12.95

Jilin

56,086

1.68

Heilongjiang

27,146

6.21

14,367,484

11.64

Liaoning

Shanghai Jiangsu

27,757,358

3.65

Zhejiang

37,169,104

-8.69

Anhui

22,236,678

11.39

Fujian

7,941,290

-3.90

Jiangxi

3,692,971

24.07

Shandong

12,719,942

31.28

Henan

10,214,528

12.68

Hubei

5,317,932

-3.21

Hunan

4,719,856

7.25

10,697,342

1.02

Guangxi

2,807,609

-0.74

Chongqing

9,968,906

7.75

Sichuan

5,310,187

48.06

Guizhou

6,847,186

78.16

Yunnan

740,332

-0.95

Shaanxi

1,990,479

118.00

74,112

-9.11

Guangdong

Gansu Ningxia

1,594,321

6.03

Xinjiang

28,750

197.1

october/november 2015 asianglass

ANALYSIS: China

Raw materials and fuel

According to the cost structure of float glass, raw materials and fuel is the most important factor influencing production cost. Of the total cost, soda ash accounts for 20%, and fuel takes up 40%. So to some degree, the cost of fuel determines how much can be earned. Preliminary statistics show that, of the total 235 operating lines now, 88 lines use natural gas as fuel, 78 lines use petroleum coke and others use coal products or heavy oil. Since 2013, prices of raw materials and fuel have been relatively stable. Soda ash, one of basic chemical raw materials, 40-50% of which is used to produce flat glass, but it also suffered the same overcapacity problem with glass industry. So prices of sodium carbonate in 2014 continued to fall and remained at the same level as in 2010. By the end of the year the price was at RMB1, 455 per tonne. Continuously declined coal price is good news for production lines which use coal gas as fuel. International crude oil price plummeted and hence so did heavy oil. However, no more than 10 lines use heavy oil as fuel so this does not influence the overall cost much. The rise of natural gas price in May 2013 is the main cause for the increased cost. By the end of 2014, the average price for natural gas purchased by glass enterprises were RMB2.8- 3 per cubic meter and the factory price was RMB3.6 per cubic meter, 18% higher than that at the end of 2012. It is projected, however, that growth rate of natural gas consumption in 2015 will be no more than 10% as the growth rates had been well above 10% for years and began to slow down in 2014.

Sluggish demand

About 80% downstream consumption of glass goes to decoration in real estate, and about 10% goes to finished automobile accessories and parts market. As real estate market began to go down gradually in 2014 and various growth rates slumped, which dragged down the demand for upper stream flat glass. In 2014, the total investment on real estate in China was RMB9,503.6 billion, a nominal growth of 10.5% comparing to last year (real growth rate is 9.9% if price factor is taking into account), and 9.3% points lower than that in 2013. Land area purchased for real estate is 333.83 million square meters, down by 14.0%, sold area of houses is 1,206.49 million square meters, down by 7.6%, area of houses newly constructed is 1,795.92 million square meters, down by 10.7%, a decline of 1.7 percentage points. Finished area of houses is 1,074.59 million square meters, up by 5.9%, a decline of 2.2 percentage points in growth rate. Manufacture and sales of automobile kept growing. According to China Automotive Industry Association, the number of cars produced and sold in 2014 was 23.7229 million and 23.4919 million respectively, up by 7.26% and 6.86%. Auto industry now has entered a stable period and is not likely to see dramatic growth. Even if market gets any better, this would not help the glass industry much on the whole.

Tightening the grip

From the perspective of supply, No. 41 document issued by State Council introduced requirements for controlling capacity newly increased. According to Access Criterion for Flat Glass Industry (2014), construction of new flat glass capacity is forbidden before the end of 2017, but the effects of the criterion were only seen by the middle of 2015. Utilization rate of flat glass capacity ranges from 80% to 90% but the rate of float glass by the end of 2014 is only 74.31% (from NBS), the lowest since 2008. With lines newly fired and those under cold repair, it is estimated that the utilization rate will be no more than 75% in 2015, indicating that more conflicts between supply and demand will be ahead. From the medium and long term, the flat glass market will shift from quantity-oriented to quality and function oriented, from rapid growth to stable and minor growth. Market growth point will be derived from upgrading of demand structure of traditional market as well as release of potential of emerging markets concerning electronics and solar energy. However, measures for mitigating overcapacity pressure and optimizing inventory structure have just begun and there are not enough technologies to push forward R&D for emerging industries and new products so it is very slow to carry out the transformation.

asianglass october/november 2015

Flat glass output of key enterprises in 2015H1 Rank

Enterprise

Accounting for China total (%)

Key enterprise total

69.14

Shahe Glass Group Co., Ltd.

11.84

Zhuzhou Kibing Glass Group Co., Ltd.

11.74

Xinyi Glass Holdings Co., Ltd.

10.29

Jiangsu Farun Group Co., Ltd.

7.39

Shandong Glass Group

5.83

China Glass Holdings Ltd.

4.46

China Southern Glass Holdings Ltd.

2.90

Hubei Sanxia New Building Materials Co., Ltd.

2.84

Shanxi Lihu (Group) Glass Co., Ltd.

2.12

China Yaohua Glass Group Corp.

1.86

China Building Materials Group Corp.

1.78

Zhongshan Yufeng Glass Group Co., Ltd.

1.35

AVIC Hainan Special Glass Co., Ltd.

1.29

Yaohua Pilkington Glass Co., Ltd.

1.07

Intex Glass (Chengdu) Co., Ltd.

1.00

Wuhan Changli Glass Co., Ltd.

0.85

Anhui Fengyang Glass Co., Ltd.

0.80

Nanning Float Glass Co., Ltd.

0.79

Jiangmen Huafeng Special Glass Co., Ltd.

0.69

Shenmu Ruicheng Float Glass Co., Ltd

0.64

Flat glass sales of key enterprises in 2015H1 Rank

Enterprise

Accounting for China total (%)

Key enterprise total

68.37

Shahe Glass Group Co., Ltd.

11.65

Zhuzhou Kibing Glass Group Co., Ltd.

11.27

Xinyi Glass Holdings Co., Ltd.

10.31

Jiangsu Farun Group Co., Ltd.

7.42

Shandong Glass Group

6.09

China Glass Holdings Ltd.

3.30

China Southern Glass Holdings Ltd.

3.10

Hubei Sanxia New Building Materials Co., Ltd.

2.79

China Yaohua Glass Group Corp.

1.98

China Building Materials Group Corp.

1.76

Shanxi Lihu (Group) Glass Co., Ltd.

1.67

Zhongshan Yufeng Glass Group Co., Ltd.

1.45

Wuhan Changli Glass Co., Ltd.

1.23

AVIC Hainan Special Glass Co., Ltd.

1.17

Yaohua Pilkington Glass Co., Ltd.

0.99

Intex Glass (Chengdu) Co., Ltd.

0.95

Anhui Fengyang Glass Co., Ltd.

0.79

Nanning Float Glass Co., Ltd.

0.78

Fuyao Group Co., Ltd.

0.58

Chongqing Yuhu Glass Co., Ltd.

0.53

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ANALYSIS: China

All these factors determine that there will not be much change in quality of industrial operation.

Output of flat glass during 2006-2015H1 Year

China total Output (m.cases)

Profitability of float glass manufacturers

Since the market crash of the flat glass market in 2014, the industry reshuffle has been widely recognized. A lot of people in the industry have a question of how long it will take to shuffle. This is a difficult question to answer. “This is a long process,” this is for sure. Clear glass into a loss, some manufacturers began to change the production of color glass. As can be evidenced by statistics available to AG, since May 2014 the domestic float glass market began to enter a period of loss, the extent of the loss of production enterprises is increasing. Because of the excellent market in 2013, the overall of the enterprises made better profitability, the majority of enterprises owned ample funds and looked forward to the “golden September and silver October”. Part of the enterprises began to change the production of color glass with better profit. According to author’s statistics in the first half of 2014, 18 new production lines were fired, while 10 lines were in cold repair. So, total capacity is still emerging and the clear glass production capacity was not reduced.

2006

465.75

7.48

295.29

3.62

531.92

12.50

335.48

10.81

2008

574.23

5.06

335.52

1.11

2009

576.85

-2.80

303.21

-7.02

2010

630.25

10.09

512.28

21.61

2011

785.10

15.84

620.11

20.61

2012

760.11

-3.2

580.00

-6.21

2013

778.98

11.21

613.53

5.56

2014

792.6156

1.09

711.6491

4.10

2015H

397.7791

-4.18

275.0121

-7.75

Output of flat glass on region in 2015H1 Region

-33.35

1.20

-48.59 -8.17

85,939.0

21.60

-0.08

8,956.5

2.25

89.44

3,806.3

0.96

-24.09

183

Colour glass operating line

Southwest

10/1

3/2

Northwest

250

237

230

South China

Output of insulated glass in 2015H1

Output of laminated glass in 2015H1 Province

17.08

26.05

198

Province Growth rate (%)

67,924.3 4,769.2

Clear glass operating line

Output (m2)

Growth rate (%)

103,616.8

Jul 2015

Total

Percentage (%)

East China

Dec 2014

Ultra clear/High clear glass line

Output (000’case)

Northeast

Jun 2014

Date

Growth rate (%)

2007

North China Number of operating float glass lines from June 2014 to July 2015

Key enterprise total

Growth rate (%) Output (m.cases)

Growth rate (%)

54,343,741

0.71

41,225,762

5.99

Beijing

669,488

-21.48

Beijing

1,406,386

1.72

Tianjin

1,145,897

-8.26

Tianjin

1,326,210

180.30

Hebei

1,808,911

-6.17

219,763

-66.34

China total

Shanxi Jilin Shanghai Jiangsu

China total

Output (m2)

1,390,102

3.01

Jilin

16,140

8.61

Heilongjiang

21,889

29.34

108,042

-23.77

882,981

-15.08

4,761,893

-6.01

Jiangsu

5,798,121

16.77

711,705

23.09

Zhejiang

2,330,241

0.66 23.74

Shanghai

Zhejiang

505,736

-28.75

Anhui

3,152,072

Anhui

880,727

-5.71

Fujian

1,971,896

13.66

Fujian

7,177,059

12.23

Jiangxi

7,875,427

-36.66

2,983,614

19.55

Jiangxi

28,811

-13.41

Shandong

652,322

-10.69

Henan

686,014

-0.71

2,160,155

23.87

Hubei

11,440,159

-14.04

Hubei

437,532

-1.77

Hunan

2,183,604

30.51

Hunan

292,260

3.87

Guangdong

2,230,574

15.69

12,661,778

-1.73

5,474

-69.01 77.52

Shandong Henan

Guangdong Guangxi Chongqing Sichuan

Guangxi

617,450

-14.67

Chongqing

3,765,917

3,734,315

13.52

Sichuan

3,404,153

69.76

591,789

272.23

Guizhou

523,731

41.30

Guizhou

52,139

131.22

Yunnan

227,902

70.64

Yunnan

53,596

-14.12

Shaanxi

1,551,660

166.59

Shaanxi

1,022,322

300.34

Gansu

43,318

-19.25

Xinjiang

6,642

71.87

Xinjiang

24,778

-60.88

asianglass october/november 2015

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ANALYSIS: Bangladesh

Hotting up Bangladesh looks for uplift

Jahir Ahmed looks at how the glass industries of are bucking the subcontinent trend and continuing with aggressive expansion plans.

he first ever building boom in Asia’s new emerging economy, Bangladesh, has revolutionised the country’s housing and construction sector since the beginning of the current century, boosting up consumption of flat glass. The development has marked a rapid urbanization all over the country pushing ahead the glass demand. One would wonder, the rural Bangladesh villages are now dotted with homes having two new things, glass windows and glass solar panels, with a theme of looking across the world using the sun’s endless smiles for green living at day and night. Once unknown to the common people, the spiraling high rises with colourful facades and fashionably designed glass-clad buildings have changed the landscapes of the cities and towns only in two decades. “Flat glass is now part of life all over Bangladesh,” observed a senior architectural designer, Mustafa Ameen, chief of DOMAS, a Dhaka-based consulting engineering firm for architectural and interior designs. In 2015, Bangladesh’s GDP size has expanded by (its continuous) six percent to US$205.3 billion, according to IMF.

asianglass october/november 2015

The change has naturally attracted investments in float glass plants. The higher growth in demand for building glass has offered opportunities for further investment in access of over US$100 million in the coming years. Besides expansion programmes of the existing factories, the new investors are thinking of setting up a float plant, as the country has a deficit market of at least 100,000 tons of quality float glass a year. The market has robust and stable double digit growth in consumption of float glass. Currently Bangladesh has two float glass plants, Nasir Glass Industries Limited (NGIL) near Dhaka capital city and PHP Float Glass Industries Ltd near the port city of Chittagong. There also exist two sheet glass factories, Usmania Glass Sheet Factory Limited in Chittagong and MEB Sheet Glass Industries Ltd in Dhaka. At the initial stage a decade ago, the installed production capacities of the two existing float glass factories were: Nasir Glass, 73,000 tons per year, and PHP Float Glass, 41,000 tons a year. Together they had a total 114,000 tons per year. In the past couple of years, Nasir expanded its daily production capacity to 400 tons from 250 tons. Now Nasir alone has an annual production capacity of 110,000-120,000 tons

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ANALYSIS: Bangladesh

THE FLAT GLASS INDUSTRY SECTOR NEEDS TO BE DYNAMIC WITH FREE MARKET COMPETITION Glass imports and exports of Bangladesh Bangladesh’s glass imports in value under 2-digit HS Code HS Code

Bangladesh’s glass imports

Imported value in million US$ in 2010

Imported value in million US$ in 2011

Imported value in million US$ in 2012

61.153

91.153

Product label 70

Glass and glassware

47.253

Imported value in million US$ in 2013

Imported value in million US$ in 2014

113.244

126.109

Bangladesh’s glass exports in value under 2-digit HS Code HS Code

Bangladesh’s glass imports

Exported value in million US$ in 2010

Exported value in million US$ in 2011

Exported value in million US$ in 2012

Exported value in million US$ in 2013

Exported value in million US$ in 2014

Product label

Glass and glassware

3.249

0.208

1.376

2.055

6.886

Sources: International Trade Centre (ITC), Geneva, and UN COMTRADE statistics.

Glass exports of Bangladesh in value Bangladesh’s glass exports in value under 4-digit HS Code

HS Code

Bangladesh’s exports of glass and glass wares

Exported value in thousand US$ in 2010

Exported value in thousand US$ in 2011

Exported value in thousand US$ in 2012

Exported value in thousand US$ in 2013

Exported value in thousand US$ in 2014

Product label 7019

Glass fibres (incl glass wool) and articles thereof

118

133

1,480

6,474

7013

Glassware used for table, kitchen, toilet office, etc

235

149

7018

Glass bead, imitation pearl, glass eye, etc

7020

Articles of glass, nes

7005

Float glass & surf grd/polished glass in sheet

1,384

7007

Safety glass, consisting of toughened or laminated glass

7009

Glass mirrors

7010

Carboy, bottle & other container of glass

7004

Drawn or blown glass, in sheets

7002

Glass in balls, unworked

7011

Glass env, open & pts, for electric lamps, cathode-ray tubes etc

1,778

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october/november 2015 asianglass

ANALYSIS: Bangladesh

Glass exports of Bangladesh i Bangladesh’s glass exports in quantity under 4-digit HS Code HS Code

Bangladesh’s exports of glass and glass wares Product label

2010

2011

2012

2013

2014

Exported quantity

7019

Glass fibres (incl glass wool) and articles thereof

41 Tons

No quantity

2,957 Tons

7018

Glass bead, imitation pearl, glass eye, etc

20 Tons

4 Tons

No quantity

95 Tons

7005

Float glass & surf grd/polishd glass in sheet

6,245,000 sq metres

34,000 sq metres

31,000 sq metres

23,000 sq metres

18,000 sq metres

7010

Carboy, bottle & other container of glass

44 Tons

8 Tons

18 Tons

9 Tons

142 Tons

3 Tons

7 Tons

1 Tons

14 Tons

No quantity

1,730 Tons

18 Tons

7009

Glass mirrors

7004

Drawn or blown glass, in sheets

7020

Articles of glass, nes

7011

Glass env, open & pts, for electric lamps, cathode-ray tubes etc

7013

Glassware used for table, kitchen, toilet office, etc

35 Tons

3 Tons

12 Tons

No quantity

7016

Glass paving block for building/ const, glass cube, etc

96 Tons

7007

Safety glass, consisting of toughened or laminated glass

1 Tons

No quantity

Sheet glass capacities of the two existing sheet glass factories are: Usmania Glass Industries, 25,550 tons a year, and MEB Sheet Glass, 11,680 tons, per year. Together their total capacity is 37,230 tons per year. Despite obsoleteness of sheet glass, it is still doing good business due to protection of the glass market. All four flat glass factories now have a total annual production capacity of 180,000-200,000 tons.

Demand shift

The demand for flat glass in Bangladesh has grown substantially in the last decade due to a steady economic growth of some six percent per year on average and resultant building boom. The demand is likely to have picked up this year to around 300,000 tons. The local manufacturers instead of promoting the markets became excessive greedy to exploit the market potential with monopoly profit-taking in collaboration with the government which also has its own sheet glass unit, Usmania Glass Industries, alleged the building glass user housing and construction industry developers. In a restricted import-environment and absence of anti-monopoly laws, the manufacturers seemed to have forced the customers buy low quality products at sky-high prices, because of stronger negative impact of the import restriction and the cartel of the manufacturers. Building sector glass consumers apprehend that the production of low quality glass will rise further within a couple of years as the country’s production capacity is due to be doubled to around 400,000 tons, with implementation of Nasir Glass’ new project of setting up of a new plant with production capacity of 600 tons a day. “The flat glass industry sector needs to be dynamic with free market competition for expansion of the domestic markets by installing cost-effective, efficient and latest float glass factories and specialized high quality glass processing industries to meet the consumer demands most affectively,” suggested Ameen, who is a prominent building glass specifier at DOMAS. “Bangladesh is emerging as a modern builder and consumer of high-tech building glasses but the glass markets lack presence of mechanism for dynamic competition by introducing world class products which are available in the neighbouring,” added Ameen. Due to restricted imports and cartels of the flat glass manufacturers, the markets of the primary flat glass is badly suppressed, complained the importers, wholesalers and retailers of raw flat glasses and processed glass products. They said the market’s yearly shortage of all types of primary flat glasses will exceed 100,000 tons soon. The high duty imports and absence of local manufacturers

asianglass october/november 2015

Nasir Glass Industries Limited (NGIL) Location: Nagor Hawla, Joina Bazar, Sreepur, Gazipur, Bangladesh Products: Float glass and processed glass, including mirror glass Markets: Domestic and export markets Others: Nasir Glass Industries has an installed annual production capacity of some 73,000 tons of clear and tinted float glass with a thickness of 3mm to 12mm. The manufacturer claims its capacity has now expanded to some 100,000 tons. Its tempered glass included clear, tinted and coated glass. Mirror glass’ thicknesses are 3mm to 12mm. Its coated and reflective glasses include various shades on clear and tinted glass by sputtering and CVD on-line process. PHP Float Glass Industries Ltd Location: Barabkunda, Sitakunda, Chittagong, Bangladesh Products: Float glass and processed glass, including mirror glass Markets: Domestic and export markets Others: PHP Float Glass has annual production capacity of 41,000 tons or 4 million sq metres of float glass with an average thickness of 4 mm. Its clear and colour float glass thickness ranges from 2mm to 12mm with width of 2,130mm-3,600mm. Mirror glass thickness ranges 3mm-8mm. Tempered glass thickness ranges 4mm-19mm. Usmania Glass Sheet Factory Limited Location: Kalurghat Heavy Industrial Area, Chandgaon, Chittagong-4212, Bangladesh Products: Sheet glass and processed glass Markets: Domestic and export markets Others: State owned Usmania Glass produces 2mm-6mm clear, frosted and designed sheet glass. It has an annual production capacity of 25,550 tons. MEB Sheet Glass Industries Ltd Location: Karnagap, Rupagonj,Narayangonj, Bangladesh Products: Sheet glass Markets: Domestic markets Others: Manufactures 3mm-5mm sheet glass. It has an annual production capacity of 11,680 tons.

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ANALYSIS: Bangladesh

in producing quality products efficiently have artificially made the consumers dependent on the monopoly manufacturers. Only a small part of the shortage is met by imports mainly by the glass processors and wholesalers, who also import several thousand tons of processed glass every year. Compared to the present production capacity, the total market demand for flat glass is about 300,000 tons, of which the demand for float glass is estimated to be over 270,000 tons. The market demand is critically suppressed by the protection of the markets by the government import policies, according to the importers and major retail glass merchants. There are only a few number of secondary glass processors who do not manufacture primary flat glass. The largest of them, Euro Bangla Glass Ltd, said there is a substantial market for high quality raw float glass to manufacture processed glass for catering the demand of building glass and other industrial companies which need safety glass for manufacturing furniture, automobilebody, pre-fabricated window, and others. Glass processing industries like Euro Bangla, which imports quality float glass, pay (all inclusive) 131.33 percent import duties on raw float glass and 37.07 import duties on processed glass. Besides manufacturing customized and readyto-use processed glass for building, furniture, automobile-body and security sectors, Euro Bangla also produces insulating glass units (IGUs). In project sector, it serves large building and construction projects with customized products, and the projects include commercial and residential buildings, hospitals, universities, hotels, shopping malls and others. “Our customers always want us to source raw glass from the established sources or global brands which have world class standards, tested by the globally reputed standard institutions of West Europe and USA,” said the Euro Bangla Managing Director M.M. Rahman. However, PHP Float Glass has planned to install a fresh float line for manufacturing quality float glass for Bangladesh’s building industry sector.

New on the block

PHP Float Glass said they have plans to go high-tech to manufacture quality products at globally competitive prices. The company said it is going to expand annual production capacity in its float plant to about 80,000 tons by 2017. Currently, it already has some expansion projects for quality processed glass. In Nasir Glass’ expansion drive, it has recently signed a contract with China Triumph International Engineering Company (CTIEC) to construct the 600 tons a day production capacity float line at a new location, near Dhaka, and expected the production to go into stream by 2018. Bangladesh’s indigenous natural gas is the main contributing factor in development of glass industry locally. Bangladesh also has good reserve of Silica sand to feed the glass plants. Raw materials, such as, soda ash and other chemicals, cullet, dolomite, feldspar and limestone are imported mainly from neighbouring India, Bhutan and Nepal. To meet the domestic demand of quality float glass, Euro Bangla Glass is considering plans to set up a 500 tons a day production capacity flint float glass plant for manufacturing 3mm-19mm glass of various sizes, Asian Glass was told by the Euro Bangla Managing Director Rahman. Euro Bangla has access to quality glass technology for its link with global glass major Pilkington of UK as its ‘official agent’ in Bangladesh. Euro Bangla is popularizing Pilkington brand in Bangladesh and learning a lot about the techniques in manufacturing. Pilkington’s Mumbai (India) based warehouse handles supplies to Bangladesh. In 2014, Bangladesh imported more than 66,000 tons of various glasses, including 13,660 tons of container glass and excluding any flat glass. However, currently, float glass is a major import item in glass sector, although, its import details could not be available. The suppressed imports have also restricted use of glass containers in the packaging industries which require high quality packaging bottles and jars. Bangladesh’s lone automated glass container manufacturer, Bengal Glass Works

asianglass october/november 2015

Euro Bangla Glass Ltd Location: Ashulia, Savar, Dhaka, Bangladesh Products: Quality processed glass, including architectural and industrial safety glass, IGU, etc. Markets: Domestic and export markets Others: Euro Bangla uses quality float glass imported from established global sources, including it trade partner Pilkington of UK, for manufacturing various processed glasses, including safety glass, laminated glass, insulating glass, bullet proof glass, and tempered glasses for building and industrial uses. The company has plans for substantial investment in new float glass manufacturing and processed glass sectors. The Bengal Glass Works Limited Location: Sandira, Demra, Dhaka, Bangladesh Products: Glass containers for packaging industries Markets: Domestic and export markets Others: The Bengal Glass Works Limited is Bangladesh's largest glass bottle manufacturer and supplier, operating the country's only fully automatic container glass plant with annual capacity of some 56,000 tons, producing light weight amber and clear glass bottles and jars for the packaging of liquid pharmaceutical, food and beverage products, and glass lamp shells for manufacturing incandescent light bulbs. J.M.S. Glass Industries Limited Location: Shimrail, Siddhirgonj, Narayangonj, Bangladesh Products: Glass containers for packaging industries Markets: Domestic markets Others: J.M.S. produces various types and sizes of amber and flint bottles for beverages, cosmetics and perfumes, liquors, processed food, and pharmaceuticals. It also produces tumblers, tablewares, bulb shells of electric fancy fittings, etc. Nasir Glassware & Tube Industries Limited (NGTIL) Location: Gorai, Mirzapur, Tangail, Bangladesh Products: Glass tablewares and glass tubing for fluorescent tube lamps and CFL lamps Markets: Domestic markets Others: Production capacity for tablewares is 100 tons per day, and tubing 20 tons daily. Nasir Energy Saving Lamp Industries Ltd (NESLIL) Location: Gorai, Mirzapur, Tangail, Bangladesh Products: Energy-saving compact fluorescent lamps (CFL) Markets: Domestic and export markets Others: Nasir Energy Saving Lamp Industries Ltd (NESLIL) has a daily production 40,000 pieces of 5W-65W spiral, lotus and U type energy-saving CFL lamps. Padma Glass Ltd/Padma Blowing Ltd Location: Barisal, Bangladesh Products: Pharmaceutical packaging glass, and glass ampoules and vials Markets: Domestic and export markets Others: Padma meets a significant demand of the small packaging industries.

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ANALYSIS: Bangladesh

Glass imports of Bangladesh Bangladesh’s glass exports in value under 4-digit HS Code HS Code

Bangladesh’s imports of glass and glass wares

Imported value in thousand US$ in 2010

Imported value in thousand US$ in 2011

Imported value in thousand US$ in 2012

Imported value in thousand US$ in 2013

Imported value in thousand US$ in 2014

Product label 7013

Glassware used for table, kitchen, toilet office, etc

12,366

17,079

30,009

32,600

39,941

7005

Float glass & surf grd/polished glass in sheet

7,550

10,281

12,266

16,010

15,877

7010

Carboy, bottle & other container of glass

11,132

12,121

11,019

13,194

13,095

7018

Glass bead, imitation pearl, glass eye, etc

1,829

1,449

6,391

8,187

10,654

7019

Glass fibres (incl glass wool) and articles thereof

2,474

4,239

6,264

9,584

9,450

7009

Glass mirrors

1,670

3,132

5,788

9,304

9,214

7007

Safety glass, consisting of toughened or laminated glass

2,602

4,245

3,769

6,907

6,895

7014

Signalling glassware & optical elements of glass nes, not optically work

3,641

3,627

4,515

7020

Articles of glass, nes

7002

Glass in balls, unworked

7016

Glass paving block for building/ const, glass cube, etc

7003

896

1,186

1,943

2,655

3,764

3,567

3,465

2,297

2,341

3,651

177

883

2,131

2,314

Cast & rolled glass, sheets/ profiles

975

1,155

2,114

1,393

1,475

7006

Glass of 70.03, 70.04, 70.05 bent, edgeworked etc not framed etc

247

283

336

227

1,306

7008

Multiple-walled insulating units of glass

170

548

431

899

1,217

7017

Glassware for laboratory, hygenic/pharm.

868

668

1,195

985

1,165

7004

Drawn or blown glass, in sheets

272

572

323

642

781

7011

Glass env, open & pts, for electric lamps, cathode-ray tubes etc

349

418

2,236

2,216

546

7001

Cullet & other waste and scrap of glass

124

173

7015

Clock/watch glass for non-correc/correc spect, etc

Ltd (BG), currently has a production capacity of some 56,000 tons for producing glass container and some non-container glass. The other packaging glass manufacturer J.M.S. Glass Industries Limited caters some packaging industries including processed food and pharmaceutical manufacturers.

Emerging areas

Bengal Glass and J.M.S. Glass have plans to upgrade further to meet the growing domestic demands. However, they are looking for exploiting other emerging markets too and those sectors include a massive markets of lamps, tablewares, etc, because of Bangladesh’s huge population of 160 million. Bangladesh’s domestic market is growing steadily. It is now a lower middle income country with massive cash generating households following expansion of export manufacturing, service industry, industrial farming and rise in remittances received by the dependent families from over 10 million expatriate workers employed all over the world. J.M.S. claims to have plans to produce value added glass products like glass blocks, ampoules, vials and test tubes, and other downstream glass products, like

asianglass october/november 2015

fluorescent lamps, compact fluorescent lamps, glass wool, glass fibers, optical glass fibers, USP type I pharma vials for intravenous medicines, etc. Bangladesh is a deficit market for container glass. Currently the market demand is estimated to be about 100,000 tons of new glass bottles per year, except returning glass bottles. But only two thirds of the market is served by the local manufacturers. Most of the packaging glass market is covered by BG. With rise of the market, BG developed its production capacity. The company is now watching market trends for possible expansion in some segments, said an official. BG said its plant in Demra is currently the single largest installed facility for amber glass in Bangladesh. It has a capacity of 155 tons per day and manufactures USP Type III amber bottles for the pharmaceutical industry. Also it manufactures lamp shells for the lighting industry. With the two amber glass furnaces, the company has the capacity to produce 400 million USP Type III amber bottles per year of sizes from 15ml to 750ml for pharmaceutical packaging, personal care, agricultural chemicals and veterinarian products. The third furnace produces 133 million glass lamp shells per year of various designs with sizes from 45mm to 75mm diameter for the incandescent lighting industry.

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ANALYSIS: Bangladesh

Glass imports of Bangladesh Bangladesh’s glass imports in quantity under 4-digit HS Code HS Code

Bangladesh’s imports of glass and glass wares

2010

2011

2012

2013

2014

Imported quantity

Product label 7013

Glassware used for table, kitchen, toilet office, etc

29,492 Tons

37,286 Tons

No quantity

19,995 Tons

20,424 Tons

7010

Carboy, bottle & other container of glass

16,316 Tons

15,054 Tons

No quantity

12,743 Tons

13,659 Tons

7009

Glass mirrors

3,140 Tons

5,878 Tons

6,160 Tons

6,772 Tons

11,090 Tons

7019

Glass fibres (incl glass wool) and articles thereof

1,373 Tons

2,410 Tons

2,914 Tons

4,013 Tons

4,459 Tons

7007

Safety glass, consisting of toughened or laminated glass

2,308 Tons

3,333 Tons

No quantity

3,982 Tons

7001

Cullet & other waste and scrap of glass

148 Tons

75 Tons

420 Tons

1,787 Tons

2,986 Tons

7018

Glass bead, imitation pearl, glass eye, etc

2,762 Tons

2,029 Tons

2,117 Tons

No quantity

2,949 Tons

7002

Glass in balls, unworked

No quantity

2,186 Tons

1,594 Tons

1,753 Tons

2,446 Tons

7006

Glass of 70.03, 70.04, 70.05 bent, edgeworked etc not framed etc

631Tons

756 Tons

673 Tons

No quantity

1,687 Tons

7016

Glass paving block for building/ const, glass cube, etc

134 Tons

284 Tons

No quantity

1,277 Tons

7008

Multiple-walled insulating units of glass

305 Tons

576 Tons

349 Tons

449 Tons

850 Tons

7011

Glass env, open & pts, for electric lamps, cathode-ray tubes etc

513 Tons

577 Tons

1,105 Tons

745 Tons

351 Tons

7014

Signalling glassware & optical elements of glass nes, not optically work

41 Tons

23 Tons

64 Tons

92 Tons

136 Tons

7015

Clock/watch glass for noncorrec/correc spect, etc

49 Tons

64 Tons

No quantity

108 Tons

No quantity

7017

Glassware for laboratory, hygenic/pharm.

234 Tons

115 Tons

No quantity

7020

Articles of glass, nes

623 Tons

624 Tons

780 Tons

916 Tons

No quantity

7003

Cast & rolled glass, sheets/ profiles

3,737,000 sq metres

4,504,000 sq metres

No quantity

7004

Drawn or blown glass, in sheets

1,078,000 sq metres

1,976,000 sq metres

1,194 Tons

2,172 Tons

No quantity

7005

Float glass & surf grd/polished glass in sheet

23,006,000 sq metres

29,063,000 sq metres

No quantity

BG also started development for producing flint glass bottles for packaging of food and beverage products and started production in full swing recently. The plant has the latest machines and equipment sourced from reputed suppliers. The Furnaces are designed by SORG, batch house from Zippe, IS machines from Emhart, rotary blowing machines from Olivotto, and lehrs from Pennekamp. All of its furnaces are equipped with control rooms, which are used to manufacture bottles all around the year with 94 percent pack-to-melt efficiency. BG said the furnaces run on natural gas with diesel oil as backup. A captive power plant provides uninterrupted power supply to the facility. The facility is supported by mould design and manufacturing workshops. The mould design unit consists of designers who work on CAD-CAM software for product drawings and the mould workshops are equipped with latest CNC machines and Bevelloni glass edging machines procured fronm Italy. The daily operations are controlled through SAP ERP and employees are connected through local area network as well as wide area network with

asianglass october/november 2015

high-speed radio-link, said the company.

Bend and tempered

In its bid to expand glass processing and manufacturing capacity, Euro Bangla Glass is going with its ongoing bend tempered glass (curved tempered glass) production line and an automatic double glazing line at a cost of US$2 million. Euro Bangla is the leading player in the glass tempering market of Bangladesh since it was established in 2003 with Tamglass glass tempering line sourced from Finland. The company claims its market share in Bangladesh glass tempering is around 65 percent, while its growth is around 25 percent per annum. In Bangladesh, it is pioneer in the production of tempered glass and is also specialized in production of insulated glass units (IGUs). Recently, it has introduced laminated glass. It is the first automated laminated glass producer in Bangladesh for architectural and interior use. This product is known as ‘LamiSafe.’

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In focus

Anaylsis

THE COSTS OF CUTTING BACK… In the USA, earlier manufacturing cutbacks are now creating delays, and adding to price tags as construction rebounds. A report in the Wall Street Journal wonders how will the US glass industry respond to keep pace, and is the door now more open for extra Asian imports? A shortage of glass is taking a toll on the nation’s commercial building boom, adding millions of dollars to the cost of new skyscrapers and halting some projects midway through construction. Demand is soaring for the metal-framed glass panels, or curtain wall, used to sheath skyscrapers. Those buildings need a lot of glass—hundreds of thousands of square feet for a typical high-rise office tower. Glass manufacturers and fabricators can’t keep up. Many glass makers mothballed their operations or went out of business in 2008 and 2009, during the recession, which hit the construction industry hard. Now, however, apartment buildings are sprouting up at their briskest pace in decades, and new office towers are rising in major markets like Manhattan at the fastest rate since the early 1990s. Restarting idled glass factories is a costly and timeconsuming process, so property developers say the current shortage could last well into next year, if not longer. In the meantime, builders are reporting that curtain-wall prices, which have risen more than 30% in the past 18 months, are setting records. Glass accounts for roughly one-quarter of a construction project’s budget, so the extra expense can add tens of millions of dollars to a building’s cost, according to Brett Atkinson, executive vice president of Moss & Associates, a Florida-based company with 30 buildings under construction that require curtain wall. Delays are also a problem: Several towers in San Francisco’s trendy Rincon Hill neighborhood, home to some of the city’s most expensive apartments, are standing bare while their builders wait for glass. “Nowadays, the glass guys are dictating the timetables of a project to us, instead of the other way around,” said Ralph Esposito, who oversees commercial construction by the New York office of Lend Lease Corp. , one of the country’s largest building contractors, with nearly 30 high-rise towers under way. “I don’t think people had the leap of faith that the [real-estate] industry would be as strong as the run we’re currently on.”

asianglass october/november 2015

The glass that ends up on the outside of an office building is manufactured in giant tanks in which sand is melted at temperatures north of 2,000 degrees Fahrenheit. Long ribbons of raw glass are floated down a river of molten metal. This “float glass” is then cut into pieces, customized to order, and the panels are sent to contractors who fit them into metal frames to produce panels that meet the builder’s specifications. A contractor typically installs the curtain wall on the side of a building. Producers shut 11 out of 47 float-glass manufacturing plants in North America between 2007 and 2014, according to PPG Industries Inc., a Pittsburgh-based glass maker, as demand for glass of all kind—from building facades to auto windshields—sagged during the downturn. Building a new plant can cost hundreds of millions of dollars, PPG says, and restarting an idled line can take months because workers have to jackhammer thousands of pounds of hardened glass to remove it from melting tanks. “Once you take one of those tanks out of commission, you can’t just turn it back on,” said Glenn Miner, director of construction for PPG’s flat-glass division. The downturn “affected all the suppliers in the marketplace. None of them were unscathed.”

In-house developments

As the glass shortage worsens, some developers are taking matters into their own hands. This summer, Related Cos., a large New York real-estate firm, got into the glass-panel manufacturing business. Teaming up with M. Cohen & Sons, a specialty-metal manufacturer, the developer, opened a $16 million, 180,000-square-foot factory in a wooded industrial park in Linwood, Pa., near the Delaware border. Related, which is known for glitzy properties like Manhattan’s Time Warner Center, decided to open its own curtain-wall factory after waiting months for delivery of window panels intended for new apartments last year in the New York borough of Queens.

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Anaylsis

ELECTROGLASS “Once you take one of those tanks out of commission, you can’t just turn it back on”

The developer needs more than 3,000 panels of architectural glass for an apartment tower it is building on Manhattan’s West Side, said Bruce Beal Jr. , Related’s president. The new glass company, dubbed New Hudson Façades, is producing mockups for those panels. It predicts that by next year its factory will be at full capacity, producing two million square feet of curtain wall annually. “With the logistical issues, small number of producers and growing costs, we’d rather bet on our ability to domestically produce and control the supply” of glass, Mr. Beal said. The glass industry is gearing back up, but progress is slow because some parts of the supply chain still haven’t recovered from the recession, said Troy Hansen, director of materials at Viracon Inc., a division of Minneapolis-based Apogee Enterprises Inc. and one of the largest fabricators of the glass panes that go into curtain wall. “As these [float glass] plants have shut down, glass has to travel farther and farther from the raw manufacturer to our facilities,” Mr. Hansen said. “There’s definitely a future of shortage of raw glass coming.” Viracon closed one of its three manufacturing plants, in St. George, Utah, in early 2013 amid flagging demand. In late 2014, as construction picked up, the company rushed to bring the plant back online. Even so, Viracon told customers in July that prices would rise by as much as 12% due to shortages of float glass, a once-unusual price increase that is becoming commonplace, Mr. Hansen said. Scott Kinter, a senior vice president in Boston with AvalonBay Communities Inc., one of the largest U.S. apartment-builders, said his team began hearing about glass-related delays about a month ago, and he expects a significant curtain-wall shortage in the fourth quarter of 2015 and into early 2016. Prices are up between 35% and 45% from 2013, he said. “Everyone is so busy and they can’t keep up with the demand,” he said. “If I were starting a new highrise anywhere on the East Coast today, the first thing I’d try to lock down is the glass. Then I’d pray nothing goes wrong.”

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TURKEY Total float glass exports (sq metres)

Total float glass imports (sq metres)

Leading float glass export destinations (sq metres)

Leading float glass import sources (sq metres)

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Total container glass exports (Kg)

Total container glass imports (Kg)

Leading container glass export destinations (Kg)

Leading container glass import sources (Kg)

Total safety glass exports (Kg)

Total safety glass imports (Kg)

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ADVERTISER FEATURE

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Recognized Expertise for Customized ProvidingSolutions Customized Recognized Expertise for Providing Solutions Vesuvius G&I G&Iuses uses its technical knowledge and expertise to provide Vesuvius its technical knowledge and expertise to provide tailored solutions and reliable services. Vesuvius G&I product tailored solutions and reliable services. Vesuvius G&I product range offers offers the best in terms of design, composition and dimensions range thesolution best solution in terms of design, composition and dimensions to applications. match your applications. weadvantage provide theof local to match your Moreover, weMoreover, provide the advantage of local by support performed by our worldwide available teams support performed our worldwide available sales and technical sales and technical teams to best respond to your expectations. to best respond to your expectations. • We apply our analytical expertise to understand your needs • • We We apply analytical to understandcapabilities your needs utilizeourour designexpertise and manufacturing • We utilize our design and manufacturing capabilities to to customize your solutions customize solutions • We use our your pilot line facilities for new prototype manufacturing anduse testing • We our pilot line facilities for new prototype manufacturing and testing

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own under its ZYAROCK® and SOLAR® brand name. suvius G&I products are applied in various markets such as glass 72 asianglass october/november 2015 anufacturing, glass heat treatment, metal heat treatment, photovoltaic d others.

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With four manufacturing platforms and sales offices on every continent, Vesuvius G&I platforms provides and a global of sales With four manufacturing sales service offices on every and continent, technical support. Local manufacturing in facilities with ISO 9001 Vesuvius G&I provides a global service of sales and technical support. quality management ensures our customers receive the best Local manufacturing in facilities with ISO 9001 quality management quality and service in the shortest amount of time. ensures our customers receive the best quality and service in the Our global presence and technical expertise enables us to provide shortest amountwith of time. our customers reliable local services in any languages and Ourany global at time.presence and technical expertise enables us to provide our

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ADVERTISER FEATURE

Marrose the Global Name in Glass Polishing Wheel Manufacture &Technology Marrose Abrasives based in the United Kingdom, was established in 1976, initially producing abrasive wheels for Rolls Royce Aero Engines for polishing turbine blades. 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. From its early beginning, Marrose Abrasives has been built on a strong family value structure; developing into one of the most recognised, reliable and trustworthy brands within the glass industry; committed to delivering high quality product and service through our network of worldwide dedicated distributors.

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Marrose Abrasives are currently looking for new distributors in Northern China and other countries. New Product Development At China Glass 2015 a new range of POLYURETHANE cup wheels for straight line and double edge grinding machines were on show for the first time, this long awaited addition to our range of polishing wheels gives the glass processor a large choice of polishing wheels to achieve the best finish and lowest possible polishing cost on any grinding machine. Working on all thicknesses of glass, the new range of wheels comes complete with a rigid, moulded back plate giving stability in all conditions, ensuring maximum lifetime and ease of use from start to finish. This new product range comes after many years of product development and testing â&#x20AC;&#x201C; including in house testing on our own 9 spindle upright edger. Marrose Abrasives are active members of the British Abrasives Federation (BAF) and FEPA (Federation of European Producers of Abrasives), working on EN safety standards, FEPA safety codes and ISO dimensional standards for abrasives. Contact details: John Day â&#x20AC;&#x201C; Sales Manager Marrose Abrasives North Beck Mills, Becks Road, Keighley, BD21 1SD, U.K. Tel: +44 1535 60263 fax +44 1535 610095 e-mail : sales@marrose.com Web : http://www.marrose.com

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Anaylsis

Refractory Zone REFMON aims for a new horizon Asian Glass talks to Mr. Szabolcs Zoltán, Sales & QM Director at REFMON Co. Ltd regarding his thoughts on 2015 and how the coming 12 months are likely to unfold… REFMON Co.Ltd. is member of a German refractory manufacturer Groups KALENBORN International GmbH & Co.KG and CONRAD LIPHARD & Söhne GmbH., having altogether 6 manufacturing subsidiaries in Europe. Having been considered production and sales especially to the glass industry the Hungarian plant is the leader one by mainly producing vibrocast items upto a range of 500-600 MT yearly. Standard refractories either by pressing or using other type of technologies, as well as monolithics, insulation, wide range of products are being produced in Germany upto 4500 MT annual Both plants are running with full capacity in 2015 including second yearhalf and considering global forecast of the industry for the next year that capacity might be slightly increased, especially depending the variety of the precast shapes that defines the total capacity strongly. AG: What are the principal products being manufactured at your current factories? (main type and tonnage by average capacity) REFMON: The Hungarian plant is producing based on the highest standard upto 450 MT mullite and zircon-mullite refractories, additionally Fusedsilica, corundum, zircon-corundum, zircon-silicate and also sillimanitebased refractories are produced already upto a 100 MT annually. German subsidiary may produce fireclay, sillimanite, mullit, zircon-mullite, high-alumina brands upto a range of 3500 MT annual. AG: With more companies putting new factories into China and the Asian region in general, what does this mean for companies such as yourselves? How do you react to new companies entering the market from outside? REFMON: REFMON is located in Hungary, Central-Europe, major competitors know the meaning of it. Having been considered far higher labour cost either in West of Europe or oversea producers our competitiveness is definitely influenced by that factor as well as using only European sources for raw materials that guarantees our top qualities combined with flexibilities. Currently REFMON does not feel strong Asian presence with our existing customers even we know they are everywhere. Contradiction to that REFMON products are more and more sold in Asia and we do expect increase of our sales in that region having been known local high quality producers that have been financially stable are more open for EU-made QUALITY products than local, sometimes far cheaper items. AG: The slowdown in China has caused much concern recently, but also, many consider the panic has been too great. What is your view and how will it affect your business? REFMON: Difficult to be answered, generally speaking concern is there in every major sectors, not only glass. But, REFMON is still on the way of expansion, products that have been produced by are sold out in numerous industries including glass. Growth in glass is expected upto 30 % this year, which we assume is a great figure, even that growth is thanks to REFMON entering to the Asian market, too. AG: Is there an option to produce refractories through other manufacturers (OEM)? Is this a plan you could pursue to make yourselves more competitive?

asianglass october/november 2015

Mr. Szabolcs Zoltán REFMON: We do not thinking about it as an option, but the main target is the package-offer with the refractories we are producing in the Group, that might be definitely advantageous to our Customers mainly from purchasing and service point of view. REFMON has been entering plenty of new articles that may pursue our Group competitiveness definitely. AG: What are your most important Asian markets? If the latter, where do you see your most promising markets so far and what plans do you have for 2016? What types of product will you be developing and how will they make a difference? REFMON: China, India, South-Korea, Indonesia, Philippines as well as Middle-East countries are definitely very important target countries for REFMON. Previously we have already mentioned by entering new products, evenmore in package is the major plan for 2016 and the forthcoming years. REFMON R&D itself with association of local and independent institutes are working on either with new products or developing existing products in order to expand its refractories portfolio meeting with more Customers’ needs. High-alumina as well as higher ZrO2-content refractories are being entered very soon, additionally castables as well as ramming mixes, furthermore new manufacturing technology like slip casting. AG: What do you consider the most important part of development for refractory companies in terms of the glass furnace? Where are you concentrating most of your research? REFMON: We assume all major refractory producers’ target should be to improve refractory resistance against glass corrosion that makes relative longer lifetime of the lines and finally cost savings to the Customers. By REFMON his own R&D staff with plenty of Customers that are open and ready for new developed products free of charge trial we may also have more and more technical information about the operational conditions at the glass manufacturing stage. Target still it is to eliminate glass defects as much as possible by improving the refractories quality having less corrosion even it is also related to the furnace design and operation and many other sectors.

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Anaylsis

AG: Do you consider the ongoing tensions with Russia as a handicap in international refractory markets at present, or does it not affect your business? This is a good question and very real. Yes, definitely. Intension by the glass manufacturers in Russia is still there, but due to that “ongoing tension” – you mentioned- the business is very limited. AG: Where do you see your major growth sectors in the next 12-24 months in terms of product usage? For example geographically, and end-use? REFMON: We have already mentioned REFMON market share is improving, even we have relative low market share in global, but West of European- as well as Asian markets’ shares we do consider a strong improvement in the following years. AG: In general terms, has Asia’s refractory industry become oversupplied in the last 2-3 years, and if that’s the case, how can new entrants make an impact? REFMON: You are definitely right, probable oversupply already lasting for more years, not only 2-3. REFMON policy is the Flexibility and Quality that might be the chance for any new entrants. AG: Is the increased use of Chinesebased glassmaking technology making a difference to refractory suppliers, or does it have no effect? Do your refractories work just as well with FIC NASA ad 2010/2 a-w

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Chinese technology partners, for example, as the traditional Europeans? REFMON: Currently we are not associating any Chinese technological partners, so cannot comment any effect. AG: Many have complained that raw material prices (and energy costs) have risen considerably in the last 12 months. With this in mind, are your materials secured on longer-term contracts that get round basic spot price problems? REFMON: REFMON does fix the raw material prices on yearly basis that is one of the key points of our logistic & purchasing responsible. We do not consider as a major problem right now, with such a partners that cooperate on long-term contracts. AG: Finally, does Refmon have any other plans for plants/expansion in the region? REFMON: Regionally we are sure our central location in Europe is very advantageous. Based on this as well as the major shareholders long-term intention and investment policy is to keep going on increasing our manufacturing capacity, the very first step has already been done by installation of a brand new sintering furnace, including 2 new drying equipment. The plan of the new, second manufacturing hall has also been ready and authorized.

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