DOWNSTREAM PLASTIC MARKETS IN THE GCC
GPCA, DUBAI, 3rd APRIL 2012 www.hipro-consult.com
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AGENDA
INTRODUCTION PLASTICS CONVERSION IN THE GCC EXPORT OF CONVERTED PLASTICS IMPORT OF CONVERTED PLASTICS DEMAND FOR CONVERTED PLASTICS
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HIPRO CONSULTING
We are focused and specialized in Downstream plastics industry •
HIPRO Consulting is a multidiscipline consulting firm that provides economic, financial, and business management expertise
•
Founded in 2007, with offices in Riyadh and Beirut
•
Over the past Five years, HIPRO has worked with the Top leading Petrochemical and Plastic Downstream for the Middle-East
•
Our focus is the growth of the Middle-East manufacturing base .
Beirut Riyadh
MGM BuildingTower Hygia-pro,Beirut Lebanon
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Kanoo Building Suite 202,Riyadh Saudi Arabia
GCC ECONOMIC INDICATORS - 2011 GDP, Billion $ 700
622
600
Over 1.2 trillion USD
500 400
302
GDP, Billion $
300 200
135 82
100
67
31
0 SAUDI
UAE
KUWAIT
QATAR
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OMAN
BAHRAIN 4
GCC ECONOMIC INDICATORS - 2011 GDP/CAPITA, 000$
179 180
160 140 120
84
100
GDP/CAPITA, 000$
80
50
60
27
40
25
20
SAUDI
OMAN
20 0 QATAR
KUWAIT
UAE
BAHRAIN From Minds to Matter
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GCC ECONOMIC P.E.S.T ANALYSIS
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AGENDA • Introduction
• Plastics Conversion in the GCC • Export of Converted Plastics • Import of Converted Plastics • Demand for Converted Plastics
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MARKET SEGMENTATION
Products
Sub-Market
Supply of Converted Plastic Product-Markets GCC 1. Food
Non- Food Packaging
3. Non-
2.
Packaging
Packaging
• Bags
• Stretch Wrap/Hood
• Retail Bags/Sacs
• Bakery Good
• Shrink Wrap/Hood
• Agri films/bags
• Fish/Meat/Poultry Packaging
• Heavy Duty Bags
• Furniture
• Industrial Liners & Drums
• Frozen Food
• Electrical/Electronic
• Hygiene Packaging
• Snacks
• Automotive
• Caps & Closures
• Caps & Closures
• Appliances
• Medical Packaging
• Lids & Containers
• Pipes & fittings
• Disposable Healthcare
• Cups & tubs
• Diapers & medical
• Containers & Bottles
• Cling Film
• Textile & yarns
• Coated bags/sheets
• Produce Bags
• Pallets, Crates, Boxes
• Lid & Covers
• Toys
• Beverage Packaging
• Pails
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• Wire & Cable
GCC PLASTICS CONVERSION MARKET SEGMENTATION % OF MARKET 27.6%
54.2% 18.1%
FOOD PACKAGING NON FOOD PACKAGING NON PACKAGING
TOTAL LOCAL CONVERSION OUTPUT = 3,036 KTONS From Minds to Matter
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PLASTICS CONVERSION GCC BY SECTOR KTONS 1,600 1,400
1,390
1,200 1,000
781
800
KTONS 600
445 400
294
200
126
0 PACKAGING
CONSTRUCTION
NON PACKAGING From Minds to Matter
TEXTILE
WIRE & CABLE 10
MARKET SECTOR PLASTIC CONVERSION - 2011 % TOTAL MARKET 9.7%
4.2%
14.7%
45.8% PACKAGING CONSTRUCTION NON PACKAGING
25.7%
TEXTILES WIRE&CABLE
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RESIN CONSUMPTION GCC PLASTIC CONVERSION 2011 KTONS 1,400
1,270
1,200 1,000 800
612
600
KTONS
489 369
400
243 200
53
0 PE
PP
PVC From Minds to Matter
PET
PS
ENG PLAST 12
RESIN CONSUMPTION PLASTIC CONVERSION 2011 % OF TOTAL RESIN 1.7% 8.0% 12.2%
41.8% PE
16.1%
PP PVC 20.2%
PET PS
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ENG PLAST
13
PROCESS PLASTIC CONVERSION 2011 KTONS 1,000
936
900 800 700 600
535
515
500 400 300 200
317
298 143
100
KTONS
126
79
72
15
0
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PROCESS PLASTIC CONVERSION 2011 % OF TOTAL PROCESS 4.2%
2.6% 2.4% 0.5%
FILM/FLEX PACK PIPE/PROFILE
4.7%
INJECTION MOLDING
30.8% 9.8%
YARN/WEAVING
SHEET EXT/FORM
10.4%
BLOW MOLD
17.0%
17.6%
WIRE & CABLE FOAM EXTRUSION ROTO MOLD
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EXTRUSION COAT
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AGENDA
• Introduction • Plastics Conversion in the GCC
•Export of Converted Plastics • Import of Converted Plastics • Demand for Converted Plastics From Minds to Matter
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EXPORT 2011- GCC PLASTIC CONVERTED PRODUCTS KTONS
3,036
TOTAL CONVERSION
KTONS
22.8%
692
EXPORT
0
500
1000
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1500
2000
2500
3000
3500
17
EXPORT FOOD PACKAGING KTONS 160 140
140
135
120 100
80 60
KTONS
33
40
21
22
LAMINATES
OTHERS
20 0 BOPP/BOPET
SHEET EXT/FORM
PET PREFORMS
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EXPORT NON FOOD PACKAGING KTONS 120
105 100 80 60 KTONS 40
32 25
24
20
4 0 STRETCH FILM
BOPP/BOPET FILMS
SHRINK FILM/HOOD
HEAVY DUTY SACS
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OTHERS 19
EXPORT NON PACKAGING KTONS 90 80
80
70 60 50 40 30 20 10
19
21 13
8
6
KTONS
4
0
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CONVERTED PLASTICS MAJOR EXPORTED PRODUCTS- 2011 KTONS 180 160 140 120 100 80 60 40 20 0
165 135 105 80
33
24
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19
13
KTONS
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EXPORT ORIENTATION FOR PLASTIC CONVERTERS -TARGET PRODUCTS
BOPP&BOPET FILMS SHEET EXTRUSION & FORMING
•Low Resin Costs.
STRETCH FILM STRETCH FILM
•Low Logistics Costs.
NON-WOVEN, WOVEN, YARN, CARPET
EXPORT
•Low Energy Costs
GCC PLASTIC CONVERTERS From Minds to Matter
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AGENDA • Introduction • Plastics Conversion in the GCC • Export of Converted Plastics
•Import of Converted Plastics • Demand for Converted Plastics
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IMPORT CONVERTED PLASTICS - 2011 KTONS
EXPORT
692
IMPORT
356
0
100
200
300
400
13.2% of demand in GCC
500
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600
KTONS
700
800 24
IMPORT CONVERTED PLASTICS FOOD PACKAGING KTONS 30
27 25
21 20
15
15
KTONS 10
7 4
5
0 PVC CLING
BOPP FILM
BOPET FILM
BARRIER FILMS
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OTHERS
25
IMPORT CONVERTED PLASTICS NON FOOD PACKAGING KTONS 25
22 20
15
12 KTONS 10
8 5
5
0 PROTECTIVE FILMS
MEDICAL
BOPP/BOPET FILMS
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OTHERS
26
IMPORT CONVERTED PLASTICS NON PACKAGING KTONS 80
70
70 60 50 40 30 20
38
34 23
21
18
15
12
KTONS
4
10 0
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AGENDA • • • •
Introduction Plastics Conversion in the GCC Export of Converted Plastics Import of Converted Plastics
•Demand for Converted Plastics From Minds to Matter
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GCC DEMAND CONVERTED PLASTICS 2011 KTONS
MARKET DEMAND
2,702
KTONS
LOCAL CONVERSION
2,500
3,036
2,600
2,700
2,800
2,900
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3,000
3,100
29
GCC DEMAND CONVERTED PLASTICS 2011 % OF TOTAL MARKET 20.8%
15.1%
64.0%
FOOD PACKAGING
NON FOOD PACKAGING
NON PACKAGING 30
SUPPLY/DEMAND BALANCE GCC -2011 102 126
WIRE & CABLE
204
TEXTILE
294
545
NON PACKAGING
DEMAND,KT
445
SUPPLY,KT
841 781
CONSTRUCTION
1,010
PACKAGING
1,390 0
500
1,000
1,500
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NEW RESIN PROGRAMS GCC ENGINEERING PLASTICS
EVA,
Polyols, Isocyanate,
Metallocene
PU
Polycarbonate
Higher Alpha Olefins,
PMMA
SAP
TPO’s & TPE’s SBR EPDM
POM PBR Polyamide Carbon Black
ABS 32
GROWTH OF GCC DOWNSTREAM PLASTICS INDUSTRY PETROCHEMICAL TECHNICAL SUPPORT GOVERNMENT SUPPORT SKILL CENTERS & EDUCATION
CONVERTERS
33
DRIVERS FOR GROWTH • The following are the steps that can accelerate the growth of plastics conversion in the GCC: Provide good infrastructural and logistics facilities including ports, roads, railways, etc… Since local demand in KSA would not be sufficient for global size manufacturing unit, substantial export benefits will need to be provided. Protect the investing company’s interest by helping through associations the export and promotion on the product manufactured.
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DRIVERS FOR GROWTH Tax holidays for 10 years
Land should be made available at preferential rates Provide utilities like power and water
Provide long term loans with low interest rates Provide conductive environment to attract skilled labors Set-up technical/vocational institutes to develop skilled local manpower From Minds to Matter
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GPCA – DUBAI 2012
www.hipro-consult.com
© From Minds to Matter 36