Editor s Note
Welcome to the third edition of Polymer and Packaging International. It has been an exciting time for the industry, and this issue will cover the 11th edition of Plasti & Pack Pakistan, the country's oldest and most prominent B2B trade event, showcasing in Lahore the latest technology centers of the world. For the industry, and for Pakistan in particular, this is the harbinger of good news: the ongoing success of this contemporary style of business in an ever growing sector bodes well on many fronts. To add to that, the edition will also cover K 2013,another big event on the industry's horizon: it is by far the biggest international trade fair for plastics and rubber in October 2013. The event will celebrate its 40th birthday this year; it is envisaged that the impact this event has will further stimulate the growth of the market and its players. The last event had recorded more than 220,000 trade visiotrs from 100 countries; it was largely an impressive event - good news for Pakistan. Read on, while we continue to attempt to put you in touch with the world of Polymer and Packaging!!!
EDITORIAL PANEL:
DR. TAHIR SHAH
Academic Staff Member Bolton University, UK
Dr. Shah graduated from University of Salford with a BSc in Chemistry and Biochemistry and a PhD in Polymer Chemistry 1981. He carried on working at the same university as a Research Associate. He was also a Senior Research Associate with the Imperial Chemical Industries and RTZ Chemicals. He also served as a Research Advisor at SABIC R&D, Riyadh, Saudi Arabia, working on the development of infrastructure and manpower to carry out research and development programs in Polymer Science and Technology. Currently Dr. Shah is a member of the academic staff at Bolton University and his research has the underlying themes of Smart Materials and Technical Textiles. His research interests also include controlling polymer structure and morphology in order to manipulate material properties.
Content Editor s Note
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International News
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Local News
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CHINAPLAS 2013 Closed with Record Breaking Show Scale
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Cover Story: Plasti & Pack Pakistan 2013
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World Premier Trade fair for Plastic & Rubber K - 2013
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FEATURED ARTICLES: - Antimicrobial Packaging Technologies and Testing Emphases
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- The new air based system excellent opportunity for PVC-O effeciency
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- Global Industry Exhibitions
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- Plastics will benefit from reshoring initiative
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- Technology in Action
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- Gulf Petchem Industry Plans 2013 Growth Strategy
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OUR TEAM Managing Editor S.H Rizvi editor@thesis.com.pk
Business Development Manager Akbar Baseer Khan akbar@thesis.com.pk Layout & Visualization Rehan A Hashmi rehan@thesis.com.pk
ADDRESS:
64-C, 3rd Floor, 21st Commercial Street, D.H.A Phase 2 ext Phone: +92-21-3246-1722 Website: www.thesis.com.pk
PRINTED AT: Quick Process
Plot No: 20, Sector 24, Korangi Industrial Area, Karachi.
INTERNATIONAL NEWS MOLECOR to represent Spain in Europe s most competitive business awards competition Innovation, business excellence and sustainability are the core principles to be evaluated as selection criteria in the European Business Awards. Madrid, July 27th 2013.- The European Business Awards has announced today that Molecor represents Spain as a National Champion in the prestigious 2013/14 Awards programme. Molecor will now compete for Ruban d honneur status in the next round of tough competition. Final category Awards winners will be unveiled in April 2014. The European Business Awards has identified some of Europe s brightest businesses based on their ability to demonstrate the three core principles of the Awards programme. The esteemed panel of judges were looking for organisations that exhibited the highest levels of innovation, business excellence and sustainability. Adrian Tripp, CEO of the European Business awards says, Over the past years we ve received an incredibly high standard of entries from organisations that are passionate about their business. However, very few get the chance to fly the flag for their country and compete across Europe to be recognised as one of Europe s finest. It really is an exceptional accolade to be picked as a National Champion To advance in the competition, a video entry will be submitted for viewing and assessment by a judging panel. In addition, the public will also be able to vote online for their favourite National Champion. These companies become National Public Champions and one will be selected as European Public Champion . Voting begins in November 2013.
Smart launched its new DS Series of Double Station Extrusion Blow Moulding Machines Smart Machineries and Moulds Pvt. Ltd. have come up with the new DS Series Double Station Blow Moulding Machine. The DS Series blow moulding machine has 5 main variants based on the capacity of bottles / cans like 250 ml, 500 ml, 1 Liter, 2 Liters and 5 Liters. Similar to the single station machines, these machines can be used to produce a wide variety of polymers such as HDPE, PP, LDPE etc. At present, the largest capacity of the DS Series is 5 Liters; but they have design ready for 10 Liter capacity machine also. The larger platen
04 | Polymer & Packaging
area help to accommodate bigger size moulds. The machine is flexible with center distances of 80mm, 90mm, 110mm and 150mm with 2 / 3 / 4 Parison Die-Heads. The DS Series machines with Faster Dry Cycles (capability of 15 Dry Cycles/minute) result in higher outputs. The fully automatic machines are equipped with freely programmable machine controls. The SMART DS-5 and DS-10 Liter machines have proportional hydraulics to get optimum energy consumption. The Highlight of the DS Series machines are Two Station with Larger Platen Area, Freely Programmable Microprocessor Controls, Heavy Duty Helical Gear Box, Superior Quality Mixing Screws, Continuous Single or Multi Parsion DieHeads, A.C. Drive, Fast Dry Cycle, Power Saver Hydraulics and User Friendly. The new SMART DS Series is getting excellent response since it enhances the production capacity by 50 to 60 % as compared to the single station machine and saves energy.
RMD Board wins the prestigious GPCA PlastCon 2013 Award for Excellence and Ideas in Plastics Innovation The best is yet to come, with this innovative product, we will expand the Made in the UAE products to a wider global customer base that will also help boost UAE s exports and help us contribute to the UAE economy, Mr. Lunavat explained further. JRD International, adds yet another accolade by winning the annual GPCA (Gulf Petrochemicals & Chemicals Association) PlastCon 2013 Award for Excellence and Ideas in Plastic Innovation Building & Construction sector for their RMD boards - Imagineered Gennext materials for construction & interiors. The Jebel Ali-based manufacturer has invested Dhs 400 Million ($80 Million) in RMD Board composite polypropylene board manufacturing plant that will change, among other things, construction systems and the way people dressup interiors. Its RMD Board manufacturing plant is capable of producing more than 1,000 designs per year in its line of products for interior decorations that will cater to different tastes and cultures.
About Smart Machinery Smart Machineries and Moulds Pvt. Ltd. (SMMPL) is a team of young dynamic professionals with an exposure to Plastic Industry since 1991. Due to the increased demand from overseas customers, we have started our export firm since 2004. Looking into the potential growth in Atomization Plastic Industry SMMPL tied up with European Suppliers like Plastic Systems & Green Box for Dryers, Dehumidifiers, and Chillers in 2007. In the course of further expansion, SMMPL has bought over Extrusion Blow Molding Machine manufacturer MAZDA Mech Industries . Now SMMPL has its own Manufacturing Unit near Mumbai along with the Trading office in Mumbai. Since inception, SMMPL has been striving to offer the best technology to the customers worldwide at a very competitive price that is Value for Money and to become the most reliable partner for the customers worldwide with smart product line. Source: Vijay Nadar Communication Manager - SMART Machineries and Moulds Pvt. Ltd
RMD Board combines functionality and aesthetics without compromising on either one. Its features are relevant especially to the requirements of UAE and GCC markets making them the ideal construction and interior decoration choice for the savvy buyers said Anupam Lunavat, Managing Director - JRD International. RMD Board s manufacturing plant harnesses the power of this patented technology which is all the more unique for its versatility. RMD Board creates diverse range of products from those with applicability in interiors such as Wall Panels, False Ceilings, Wall Coverings and Floorings to those that are made especially for the construction industry such as Shuttering Panels and Site Fencing. The plastic conversion industry in the GCC is in a rapid growth phase in comparison to other regions around the world. Now, thanks to organizations such as JRD International, they are on the threshold to international exports. This achievement and innovation needed to be recognized and applauded to such companies. Building on this idea, GPCA has recognized the innovation, quality and durability of RMD Board products and bestowed upon them their prestigious trophy Excellence and Innovative Ideas for Plastic Products,
Processes and Their Sustainability . JRD International and RMD Board fought tough competitors and excelled in such criteria as Innovation, Creativity in Technology and Chemistry of plastics conversion, Excellent products and/or applications using raw material produced from the region, Local focus on the socio-economic development of the region and Economic impact and growth prospects to take away the prize. Source: JRD International - Mr. Kiran Apsingekar - Head Business Development
PLAST Trade Show from 5th to 9th May 2015 On 6 June 2013, at Verdellino-Zingonia, CESAP hosted the annual meeting of Assocomaplast (the Italian trade association belonging to Confindustria, which groups together some 160 manufacturers of machinery, moulds and equipment for plastics and rubber). The association s president, Giorgio Colombo, opened his presentation by confirming the dates of the upcoming PLAST trade show, which is organised by Promaplast srl, Assocomaplast s commercial company, and will be held in Milan from 5 to 9 May 2015. This means that the three-yearly international plastics and rubber industry event will be opening its doors immediately after the start of EXPO 2015, and it is hoped that this concomitance with the world exhibition will have a catalysing effect on the specialist trade show. Mr. Colombo went on to stress that Italian manufacturers of machinery, equipment and moulds for plastics and rubber must devote ever greater efforts to continually innovating and improving their products, so as to maintain their ability to supply high-tech solutions targeted primarily at the many important export markets that are increasingly investing in advanced, energy-efficient machines, also in view of the ongoing slump of the domestic market. Recalling the principal indicators that characterised the sector s results for 2012 production output at 4 billion euro, i.e., around the same as in 2011, and exports up 6% to nearly 2.6 billion Mr. Colombo emphasised how it is once again foreign sales (which account for around 65% of the total) that are sustaining the industry. This idea was also taken up by professor Marco Fortis (of Università Cattolica, and vicepresident of the Edison Foundation), who in his talk underscored how the weakness of the Italian market and of several other European countries (in marked contrast with other global economies, most notably the US), due in part to overly-stringent austerity policies adopted by governments, is heavily crippling the manufacturing sector, which instead needs an immediate and energetic impulse to thrust it out of the current recession.
To support the Italian companies in this sector, Assocomaplast has scheduled a series of promotional events trade show participations, workshops and B2B, technical seminars, buyer missions etc. intended to foster, consolidate and improve awareness of Made in Italy plastics and rubber equipment across many global markets. The next appointment will naturally be the K exhibition in Düsseldorf (from 16 to 23 October, 2013), where Italian exhibitors have traditionally been second only to those of the host country, again confirming the preeminent role of Italian equipment makers on the global stage. Source: Assocomaplast
Italian Plastics and Rubber Machinery Exports After a still-positive trend in January and February (in the wake of the +5.9% result at the end of 2012), the first quarter of 2013 instead closed with a downturn for Italian exports of plastics and rubber processing machinery, according the ISTAT figures processed by Assocomaplast (the Italian trade association belonging to CONFINDUSTRIA, which groups together some 165 manufacturers).
manufacturer Starlinger & Co. GmbH donated two Starlinger alpha 6 circular looms to Naci Topçuoðlu Vocational School, the vocational branch of Gaziantep University. Turkey is one of the world s most important suppliers of woven packaging, with many producers located in and around the city of Gaziantep. Since we have been supplying machinery to Turkey for more than 30 years, it is a logical step to give students who will later work in this industry the possibility to train on the newest equipment , says Angelika Huemer, Managing Partner and CEO of Starlinger & Co GmbH. She attended the hand-over ceremony for the two circular looms on June 5th, 2013, and cut the ribbon together with the governor of Þahinbey District Mehmet Aydýn, Gaziantep University Principal Prof. Dr. Yavuz Coþkun, Head of Naci Topçuoðlu Vocational School Prof. Dr. Cahit Baðcý, the chairman of the Gaziantep Chamber of Industry Council Mustafa Topçuoðlu, the chairman of the PP Fabric and Bag Producers Association Mahmut Köroðlu, and the president of the board of directors of Gülsan Holding Vedat Topçuoðlu, to officially hand over the looms to the students
In fact, foreign sales in this sector fell 4% compared to January-March 2012, set against a 9-point drop in imports. The result is on the whole not surprising, given that orders had already started to slow at the end of 2012, according to the periodic business climate survey conducted at the start of 2013 by Assocomaplast. That said, the same survey repeated in AprilMay of this year recorded a modest upturn in order portfolios, so it will be interesting to see to what extent this translates into a recovery for exports. Meanwhile, on the domestic front there are no signs in the near future of any increase in production output that would renew processors propensity to invest in equipment. On a more positive note, the Association hopes that the decree of doing very recently enacted by the government, which includes measures to encourage machinery investments, will give processors the boost they need to at least partially renew the installed equipment base. Assocomaplast, jointly with other mechanical trade associations belonging to Federmacchine, has been pressing Confindustria to urge upon the government the immediate need for further incentives patterned after the enduringly successful Sabatini law. Source: Assocomaplast
Technology for Education What you know better, you do better. With this motto in mind, Austrian machinery
and teachers of the Faculty for Plastics Technology.
Turkey a stronghold of the woven PP bag industry The Starlinger alpha 6 looms are designed to produce fabric out of polypropylene/polyethylene tapes which is used for woven plastic packaging production. Gaziantep is a major production center for woven PP fabric and machine-made carpets, and covers around 50 % of the total bag production volume of Turkey, which amounts to a value of USD 500 million1. Turkey is one of the most important markets for Starlinger , confirms Angelika Huemer. Not only do we have many long-time customers here; Turkish woven sack producers are always interested in innovations and many of our latest machine developments go to Turkey first. The Austrian engineering company is the leading supplier of machinery and complete lines for woven plastic bag production worldwide. In the course of the past three decades Starlinger has installed around 4,800 circular looms including the corresponding upstream and downstream machinery for woven PP bag production in Turkey. To ensure
Polymer & Packaging | 05
fast and efficient customer service, a team of well-trained Turkish service engineers based in Gaziantep provides immediate technical support for all the Starlinger machinery installed in the country. Source: Sigrid Eder - Marketing Manager Starlinger & Co. Gesellschaft m.b.H.Starlinger & Co. Ges.m.b.H.
Borouge Highlights Pioneering Polypropylene Solution for Air Intake Manifolds At Chinaplas Borouge, a leading provider of innovative, value creating plastics solutions, highlighted the introduction of its successful GB306SAFC grade, a unique short glass fibre reinforced polypropylene (PP) that contributes to enhancing the development of automotive industry in China. The demonstration of the solution was made at Chinaplas 2013, held in Guangzhou from May 20-23. Borouge s GB306SAFC PP, produced at Borouge s Compounding Manufacturing Plant in Shanghai, is being specified to replace polyamide (PA) components in air intake manifolds of the MPI 1.4L and 1.6L gasoline engines of Volkswagen s leading models, such as Golf, Polo, Jetta and Lavida. The successful application of GB306SAFC by Volkswagen, and their part supplier Roechling, paves the way for Borouge to expand its market share in the air intake manifold business in China and strengthens Borouge s position as a provider of value added, innovative plastics solutions inÊ the automotive market, said Thomas Rothmayer, Borouge s Head of Mobility Competence Centre. With the use of GB306SAFC, the mass of the automotive parts is reduced by 15% and the cost by 20%, compared to polyamide. In addition, Borouge s high performance PP compound shows excellent mechanical properties even in humid environment. Borouge has been growing rapidly in China s automotive market mainly after the inauguration of its manufacturing plant and the Application Centre in Shanghai three years ago. Today, Borouge s innovative plastics solutions are widely used in many automotive parts such as bumpers, body panels, trims and dashboards, not only in China but in the whole Asia Pacific region. Borouge s success in the market is being built on technical competence and market understanding to create value for our customers , commented Umberto Granata, Borouge s Vice President of Marketing Centre Mobility. Together with our manufacturing base and Application Centre close to our customers, Borouge is providing solutions and services tailor made for our customers needs. In March 2013, Borouge and Borealis launched an online bi-lingual marketing campaign
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entitled Driving tomorrow . The campaign aims to highlight the benefits that Borouge s innovative plastics solutions can bring to the automotive industry in terms of reducing vehicle weight for optimal performance. Information about the campaign is available through the websites: www.borougedrivingtomorrow.com or w w w. b o r e a l i s d r i v i n g t o m o r r o w. c o m Borouge was established in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Austria based Borealis, a leading provider of chemical and innovative plastics solutions. It is a groundbreaking international partnership at the forefront of the next generation of plastics innovation. Source Borouge
Calysta Energy and NatureWorks collaborate to transform methane into the lactic acid building block for bioplastics Multi-year research and development project is aimed at feedstock diversification, innovatively utilizing methane, a potent greenhouse gas. Calysta Energy and NatureWorks have entered into an exclusive, multi-year collaboration to research and develop a practical, world-scale production process for fermenting methanea potent greenhouse gas-to lactic acid, the building block for Ingeo, lactide intermediates and polymers made from renewable materials. If the collaboration results in the successful commercialization of this first-of-its-kind technology, the cost to produce Ingeo would be structurally lowered, and the wide range of Ingeo based consumer and industrial products could be produced from an even broader set of carbon-based feedstocks, complementary to what is already in use by NatureWorks. A greenhouse gas 20 times more harmful than carbon dioxide, methane is generated by the natural decomposition of plant materials and is a component of natural gas. Methane is also generated from society's organic wastes and is produced from such activities as wastewater treatment, decomposition within landfills and anaerobic digestion. If successful, the technology could directly access carbon from any of these sources. Determining the feasibility of methane as a commercially viable feedstock for lactic acid may take up to five years, according to NatureWorks. Feedstock diversification for Ingeo "If proven through this R&D collaboration, the new technology could be revolutionary because it will provide alternatives to the current reliance on agricultural feedstocks, and with the direct conversion of methane, it will greatly simplify the number of steps and operations needed to convert carbon into
performance consumer products," said Marc Verbruggen, president and CEO of NatureWorks. "This could structurally lower the cost of producing Ingeo." Currently, Ingeo relies on carbon from CO2 feedstock that has been fixed or sequestered through photosynthesis into simple plant sugars, known as "first generation materials." NatureWorks' flagship facility in Blair, Neb., uses industrially sourced corn starch, while its second facility currently in planning for a location in Southeast Asia will use cane sugar. In parallel with the collaboration, NatureWorks is continuing its broad technology assessment of "second generation" cellulosic sources of carbon. In the case of Southeast Asia, opportunities exist for harvesting cellulosic sugars from bagasse, an abundant lignocellulosic byproduct of sugarcane processing. The research and development collaboration with Calysta Energy relates to NatureWorks strategic interests in feedstock diversification and a structurally simplified, lower cost Ingeo production platform. Calysta Energy is developing its BioGTCT (biological gas-tochemicals) platform for biological conversion of methane to high value chemicals. For NatureWorks, methane could be an additional feedstock several generations removed from simple plant sugars. The project will wrap up with an evaluation of potential sources of a methane feedstock for commercial scale production of lactic acid. The evaluation will include criteria such as purity, availability, price, location to customers, GHG sequestration potential and environmental and energy impacts. Feedstock diversification supports the organization's goal of utilizing the most abundant, available and appropriate sources of carbon to produce Ingeo for the local geographic region served by a NatureWorks' production facility. We are pleased to be partnering with NatureWorks, an industry leader in renewable technology and biopolymer business development," said Alan Shaw, Ph.D., chairman, president and CEO of Calysta Energy. "Calysta's proprietary technology enables a novel route from a significant greenhouse gas to highvalue industrial chemicals such as lactic acid. This approach demonstrates the power of biology compared to chemical transformation. Specific products, such as lactic acid, would be extremely difficult to make economically from methane using traditional catalysts. "Calysta technology offers NatureWorks a competitive advantage through excellent product performance at a lower cost, and we look forward to a productive collaboration. This exclusive project validates our value proposition of converting existing, proven biological pathways to advantaged feedstocks." The companies will share commercialization rights for select products developed under the agreement.
LOCAL NEWS
LCCI for barter trade with Iran to curb smuggling
material price that is very damaging for the local businessmen.
The LCCI President Farooq Iftikhar was talking to a 10-member Pakistan Plastic Manufacturers Association (PPMA) delegation that called on him under the leadership of LCCI Executive Committee Member Mahmood Gazanvi and comprising Executive Committee Member S M Tariq, President Plastic Manufacturers Association Muhammad Shoaib, Malik Munwar and others
He told the LCCI President that the Association had already sent letters to the FBR that the smuggling of polymers from Iran was not only causing a huge loss to the government but was also badly damaging the local investors who are running their businesses through clean documentation. He said that only because of these unscrupulous elements it has become almost impossible for the genuine businessmen to continue their businesses.
The LCCI President said that the government did not need to go to IMF or World Bank for funds if smuggling is controlled. He said that cross border smuggling of plastic moulding compound and finished products had pushed the plastic trade and Industry to the verge of closure.
He said that the total import of plastic raw material Polyethene and Polyproplene in 20112012 was about Rs 100 billion. The importers pay advance tax at port about 35 percent in lieu of duties and taxes and if the smuggling is not stopped, it will lead to a loss of minimum Rs 35 billion to the exchequer.
A large number of businessmen attached with plastic business were now planning to shift their businesses to other countries as repeated LCCI appeals to the government and other concerned authorities had failed to yield any results, the LCCI President added.
Recorder Report
Farooq Iftikhar said that after electricity and gas shortage, the smuggling had now started taking its toll on businesses therefore the government should bring into utilization all available resources to weed out this menace. The LCCI President suggested to the government to start barter trade system in order to eliminate smuggling. The LCCI President also sought new FBR Chairman help and urged him to bring down rate of Sales Tax to five per cent from 16 percent on Plastic moulding compound. He said that by curtailing Sales Tax rate to five per cent the government would be able to generate more revenue what it is getting through 16 per cent Sales Tax. Due to higher tax rate much of the money is going into the pocket of smugglers who are thriving at the cost of country. He said that a considerable surge in smuggling from Iran had been registered after US sanctions. Therefore, to save the plastic industry and its trade from a total collapse, the government should immediately start Barter Trade with Iran. The President Pakistan Plastic and Manufacturers Association Muhammad Shoaib said that it is very unfortunate ?that on one hand the Federal Board of Revenue (FBR) authorities were playing arm-twisting with the exiting taxpayers while on the other hand the menace of smuggling is fast spreading its tentacles under their watch and at the cost of the exchequer. He said that only because of huge smuggling, finished plastic products are available in the local market at Rs 20 per kg below the raw
Solid Waste Management Karachi Metropolitan Corporation (KMC) has singed another Memorandum of Understanding (MoU) with a foreign firm on Wednesday to bring in foreign investment in the much awaited projects like solid waste management. Administrator KMC Muhammad Hussain Syed signed the MoU with the Glasgow-based international firm during his visit to London, which is aimed at implementing the plan to dispose of nine thousand tons garbage daily in Karachi and to generate electricity from the garbage. On behalf of the British firm, Cork Private Limited, Richard Cork signed the document. A high powered Pakistani delegation comprising Sindh Governor Dr Ishrat-ul-Ebad Khan, Federal Minister for Port & Shipping Babar Khan Ghouri, Provincial Ministers Dr Saghir Ahmed, Raza Haroon, Adil Siddiqui, Faisal Sabzwari and Pir Mazhar-ul-Haq, Commissioner Karachi Roshan Ali Shaikh, High Commissioner of Pakistan Wajid Shams-ul-Hassan, British envoy to Pakistan and other were present on this occasion. According to KMC officials, Administrator Karachi praised the sanitation system including picking and transfer of garbage to landfill site in London and Glasgow, which he said, was being run on scientific basis and could prove ideal for other cities. Administrator Karachi said this MoU would be implemented soon and a clear change would be seen in this connection. With the production of electricity from garbage, not only the requirement of power would be fulfilled but it would also lead to useful disposal of a large quantity of garbage generated in the city. Syed said that they wanted to avail full advantage of the experience and skills of the experts in London and Glasgow so that the
sanitation system in Karachi could be made better. The professional excellence of the Glasgow Municipality and the immense experience of the international British firm would give KMC more facilities in Karachi. Richard Cork said his firm had huge experience in the field of solid waste management and was serving in many countries successfully. He said Karachi was an international city and they would be pleased to serve there. Solid Waste Management System in Karachi would be set up in such a way that it did not put any adverse effect on the city population and only small vehicles were used for shifting of garbage from different areas of city to landfill sites. This garbage would be later used for generating electricity. Administrator Karachi also met with the head of the medical department of Glasgow and talked with him about the agreement of purchase of ambulances for different hospitals run by the KMC. The MoU in this connection was expected to be signed on Thursday. The delegation led by Governor of Sindh Dr Ishrat-ul-Ebad Khan also signed six MoUs with the Business Groups and Scotland University which were expected to bring in multi billion dollars investment in Karachi. Last month KMC and Istanbul Metropolitan Municipality (IMM) have signed a mutual co-operation agreement aiming at enhancing technical and vocational training in both cities. The MoU in this effect was signed in Istanbul during a meeting between KMC Administrator Muhammad Hussain Syed and Deputy Mayor of Istanbul Metropolitan Municipality Ahmed Salamat in which delegation from Pakistan and high officials of IMM were also present. Source: Business Recorder
Retail boom turns packaging industryÂ’s fortunes around Over a period of time, the company specialised in quality packaging boards and decided to increase its capacity with some mega expansion. The retail sector has been flourishing in Pakistan for the past few years on the back of increased consumer spending, but it is not the only sector benefitting from the phenomenon. Allied industries, particularly the packaging industry, have also made fortunes from a rise in consumer demand in the worldÂ’s sixth-largest market by consumer size. Century Paper and Board Mills Limited, a Lakson Group company listed on the Karachi Stock Exchange, is one example demonstrating this trend. In just four years, the Karachi-based manufacturer of packaging boards tripled its revenues from Rs4.3 billion in financial year
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2007-08 to Rs13 billion in 2011-12. This growth in revenues is likely to continue in the current year as well. The company has already earned Rs10.4 billion in sales for the nine months ended March 31, 2013 a 10.4% growth over Rs9.4 billion earned in the same period in FY12. Similarly, Century Paper s after-tax profit rose to Rs581.4 million in the first nine months of FY13, up 52.6% over Rs380.8 million in the corresponding period of FY12. This growth is the result of successful sales from the capacity addition made in 2008, Chief Executive Officer Aftab Ahmad told The Express Tribune. The company, Ahmad said, had installed a state-of-the-art multilayer Coated Duplex Board Machine at its manufacturing facility, which is located on the outskirts of Lahore. That move helped it more than double its production capacity to 240,000 tons per year by 2009, much higher than the 110,000 tons per year it had been producing since 2006. Century s major customers, according to Ahmad, include printing companies that meet the packaging requirements of various multinational companies, and major national companies engaged in the fast moving consumer goods sector, pharmaceuticals, food, confectionery and tobacco businesses. Its packaging boards are its main source of revenue. The growth of packaging companies is closely tied to that of the consumer goods and retail sectors, but it is its business strategy major decisions about investments and expansion that has helped Century Paper fully capitalise on the growth opportunity. Since its inception in 1990, Century s CEO said, the company has focused on quality and has kept developing import substitutes to various paper and paperboard grades. The company raised its capacity from 30,000 tons per year to 110,000 tons per year in 2006, Ahmad said. Over a period of time, the company specialised in quality packaging boards and decided to increase its capacity in this particular product category with some mega expansion, he added. After analysing its market potential, he said, the company went for a major expansion drive and kicked off a project in 2006 a Multilayer Coated Board production machine with an annual output capacity of 130,000 tons and a 20-megawatt co-gen power plant. The added capacity has resulted in higher volumes, but, according to company Chairman Iqbal Ali Lakhani, the results for FY12 were not ideal despite a higher sales volume than the preceding year. To this, Ahmad said, international prices had decreased, and they
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could not increase their prices as planned in the budget. The company, however, seems to be continuing to invest in itself. In 2012, it installed a coalfired boiler at its manufacturing facility in energy-starved Punjab for the production of process steam. This was an excellent and timely decision and it meant we could now run our plant partially, even without gas, Ahmad said. The company is targeting a 10% growth for FY13. Since its topline has already grown over 10% in the first nine months of the year, Ahmad s expected target looks very achievable. Source: The Express Tribune
Federal Government Urged To Withdraw Duties, Taxes on Paper All Pakistan Paper Merchants Association along with Pakistan Printing Association here on Tuesday demanded the federal government to withdraw taxes and duties imposed on paper used in printing of books, for the sake of promotion of education in the country. In case the government withdraws these taxes and duties on book printing paper, the cost of text books and copies in the country would come down to at least 40 percent. The association s president Muhammad Saleem Memon while addressing a press conference at the National Press Club said that these taxes and duties that calculated, customs duty at 20 percent, general sales tax 19 percent and withholding tax at 5.0 percent with port cess and shipping charges making a total of 52 percent are badly effecting the promotion of education in the country. At the same time import of printed books are totally exempted from any such duties and taxes and badly impacting country printing services export potential. They informed that there are huge anomalies in the customs tariff and Duty and Tax Remission for Export Rules (DTRE) and these have badly impacted the local paper industry as well as printing industry of the country. He said that these taxes and duties are actually tax and duty on education of children of Pakistan, whereas in Afghanistan these taxes and duties are totally exempted as well as in India on printing paper only 2.0 to 3.0 percent are duty and taxes, resulting in availability of cheap books and copies for the children. He mentioned that a few years back Pakistan was exporter of Quran Pak and due to the anomalies of the customs tariff and misuse of DTRE Scheme, Pakistan has turned up as an importer of Quran even from India, Jabal Ali and Greece.
He motioned that duty on duplex, which is a raw material or basic material of printing industry is also on the higher side, which is 25 percent duty, 19 percent GST, 5.0 percent withholding tax. He demanded that SRO 863 be withdrawn and anomalies in zero rating may also be corrected so as to provide enabling environment to local school and college students, printing industry to benefit from. A representative of printing industry informed that at present 15,000 printing press are in the country and around 250,000 people are attached with this industry and due to the shifting of printing business abroad, 20 percent industry has vanished and these people have joined other professions. A few years back foreigners used to avail services of printing in Pakistan and due to huge cost of paper and allied packing materials, this business has shifted to Malaysia, Indonesia and Singapore. Even one of the major publishers got printed huge quantity of books from abroad and Pakistan s printing industry has lost Rs 23 billion tender for printing of Afghan students text books for consecutive two years and they have placed order with some other country. It was informed to the media that in case duty on printing paper falling in PCT heading 4802 be withdrawn, it would help in the revival of local printing industry and Pakistan would again attract printing business from other countries and again would become an exporter of text books. The associations hoped that the newly elected government would take sympathetic view of their demands and would help revive local industry for the best interest of the country as well as promotion of education. Source: Daily times
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book your advertisement now & avail special discounts on annual bookings. Please Contact: akbar@thesis.com.pk
With its expansion on the show scale and extension to four whole show days, CHINAPLAS 2013, closed on May 23, 2013 at China Import & Export Fair Complex, Pazhou, Guangzhou, PR China, attracted 114,103 visitors from 138countries and regions, with 26.97% coming from abroad. Compared to CHINAPLAS 2011 held in Guangzhou, the total number of visitors enjoyed an increase of 21.28% whereas number of overseas visitors jumped 61.36%, reaching a total of 30,770.The strong presence of overseas visitors indicated the show s climbing international status. Despite a gloomy economic environment in developed countries, Chinese market presents plenty of opportunities as the local manufacturing industry is undergoing structural upgrade. Chinese enterprises are in need of automation and advanced machines to cope with rising labor cost and intensified global competition. The continual increase of overseas visitors denotes the significant role of China as the global sourcing platform. The growth of CHINAPLAS has well-demonstrated the optimism in the development of plastics and rubber industries, said Stanley Chu, Chairman of Adsale Exhibition Services Ltd., organizer of CHINAPLAS.
Strong Attendance of Overseas Visitors The grand opening ceremony of CHINAPLAS 2013 was held on May 20, 2013.This year, CHINAPLAS saw a participation of 2,969 exhibitors from 38 countries and 15 country/regional pavilions, occupying an exhibition area of 220,000 sqm. The everincreasing scale further consolidates CHINAPLAS role as the second largest plastics and rubber trade fair in the world, following the triennial-held K show in Germany.
CHINAPLAS 2013 Closed with Record Breaking Show Scale
The strong attendance of overseas visitors were contributed from 137 countries and regions, with India, Hong Kong, Korea, Indonesia, Taiwan, Malaysia, Thailand, Japan, Vietnam and Turkey as the top ten origins. 67.9% of the overseas visitors came from Asia including Hong Kong, Macau and Taiwan, followed by Europe (9.37%), Middle East (8.88%), America (6.39%), Africa (5.73%) and Oceania (1.73%).Among the local visitors, majority of them came from Southern China, including Guangzhou (58.11%), followed by Eastern China (including Shanghai) (27.3%), Central, Southwestern and Northwestern China (8.11%) and Northern & Northeastern China (6.48%). Every year, numerous quality buyers attended this mega plastics and rubber show. Over 130 delegation groups including prestigious enterprises and associations which represented various application sectors like automotive, building and construction, electrical and electronics, lighting, medical, and packaging, etc. visited this year.Famous corporations Polymer & Packaging | 09
We will visit the show again next year, mentioned M. Natarajan, Manager Purchase, Nandi Group of Companies. Dr. SiripenThongpassano, Managing Director, Dai Ichi Plastic Co., Ltd., We are looking for new blow moulding machines and raw materials like PE, and especially interested in Chinese suppliers with competitive price and good quality. An order has already been made with a local moulding company. It is happy to see the Chinese technologies improving to the international level. The show is organized with useful facilities like map and app, so it is easy to find the exhibitors.
included Beauty Star, BYD, Foxconn, FSPGGoody Technology, Gree, Guangdong Decro Film, Hisense, Yutong Group, etc. Most of the overseas groups came from emerging markets, such as Brazil, India, Indonesia, Korea, Malaysia, the Philippines, Thailand, Vietnam, etc. The widespread of the countries and regions and the strong attendance of the well-known corporations demonstrated the importance and the high degree of internationalization of CHINAPLAS as the sourcing platform in the plastics and rubber industries.
differentiate our Film Extrusion Systems from other numerous products, said Jinesh Shah, Assistant General Manager Sales, Rajoo Engineers Ltd. Pauline Ning, Marketing Manager, Asia Pacific of Nature Works LLC stated, CHINAPLAS provides a broad exposure for our company by meeting buyers around the globe. It helps us to promote our new products and company image. We have met many bioplastics and packaging buyers who are our targets. Visitors were impressed by the improving high quality of the show and the exhibitors. According to organizer s on-site survey, 85.84%
Wu Wei, Manager of Packaging Engineering R&D Centre of Perfect (China) Co Ltd., visited CHINAPLAS every year and was impressed by the show s scale and quality of the exhibits. I particularly want to find out the latest trends of packaging materials, especially materials with special functions that can be applied in the FMCG industry, said Wu Wei.
Close to Market Needs Being the Key of CHINAPLAS Besides viewing innovative technologies at the show, one of the most important objectives of visitors is to source practical and costeffective solutions for upgrading production capacity and enhancing product features of their enterprises. Undoubtedly, CHINAPLAS is able to fulfill the diversified needs of buyers from China and all over the world. We will
Concurrent Events Shed Light to Show Theme Events of Archi-Light and Design Loft stood out the show theme, The Future is in Plastics and Rubber , of this year. Stanley Chu and representatives from SABIC, Italcementi Group, LESSO, Microcell, Guangdong Industry Technical College and Tongji University officiated the kick-off ceremony of ArchiLight on May 20, 2013 at the Archi-Light Concept House . Many visitors went inside the futuristic house to touch and feel the advanced, transparent and energy-saving plastic building materials. Besides, innovative chairs designed by students from the Guangzhou Academy of Fine Arts were displayed at different Design Loft resting areas in the venue.
Complimented Highly by Exhibitors and Visitors Exhibitors were satisfied with the high quality visitorsand the organized theme zones. This is the second time we exhibit at CHINAPLAS. The show attracts international as well as local buyers, which are with good quality. And, it's good to have this new Film Technology Zone this year so that we can
10 | Polymer & Packaging
of the interviewed visitors rated the whole exhibition from good to excellent. Moreover, 92.19% of the respondents concluded the exhibitors quality from good to excellent. We are a pipe manufacturer and want to explore the China market. There are many right suppliers in CHINAPLAS and it is good to discuss business with them at this platform. The theme zone classification is very clear and allows us to find targeted exhibitors easily.
continue to enrich our show content by addressing market needs in the next CHINAPLAS," said Ada Leung, Assistant General Manager of Adsale Exhibition Services Ltd. CHINAPLAS 2014 will be staged at Shanghai New International Expo Centre, Shanghai, PR China on April 23-26, 2014.The new edition is expected to attract more than 120,000 visitors.
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11th Edition of the International Plastics & Packaging Industry Trade Fair
Cover Story
5 – 7 September 2013 Expo Centre Lahore
From the OrganizerÂ’s Desk Set in the industrial & manufacturing heartland
latest technology display of Masterbatches,
2013 is the addition of PRINT PAPER & LABEL
of the country; the city of Lahore, Plasti&Pack
raw materials & petrochemicals, injection &
PAVILION. This confluence of the allied
Pakistan 2013 will showcase the leading &
blow molding, , pipes &packaging film extrusion
industries of packaging, printing, paper &
progressing players of plastic & packaging
technology, filling, sealing, capping & other
paper converting will greatly leverage the
industry of Pakistan. Plasti&Pack is the most
packaging machines & materials, PET resin &
exhibitors of both industries especially the
trusted B2B event of the close knit industries
PET products, disposable packaging, paper &
newly emerging field of self adhesive labels
of plastic processing and packaging since a
paper converting, labeling & printing
decade. The 11th Edition of Plasti&Pack will
technology, flexible packaging, packing
again be powered by the combined experience
machines, testing & analytical instruments
and expertise of Pegasus Consultancy and
etc.
Fairtrade Messe Germany.
Plasti&Pack Pakistan 2013 is supported by Board of Investment Pakistan (BOI) and Engineering Development board of Pakistan (EDB) and a wide network of sales agents in
Apart from the enthused response from local
China, Egypt, India, Italy, Portugal, Spain,
Plasti&Pack 2013 is set to propel impeccable
market, Plasti&Pack Pakistan 2013 will witness
Taiwan & Turkey
advantage to its fraternity of exhibitors, buyers
international participation from leading
& visitors seeking innovative & cost effective
companies of Germany, Turkey, UAE, China,
source & sell solutions in order to bring
Taiwan, Italy and India. Last year, 136
comprehensive merchandizing value for their
companies participated in the event
products.
representing 20 countries.
The exhibit profile of Plasti&Pack includes
The special feature of Plasti&Pack Pakistan
10th Edition of International food & beverage processing packaging Trade Fair IFTECH FOOD + BEV TEC 2013 is the concurrent event of Plasti&Pack Pakistan2013.
Polymer & Packaging | 11
Exhibitors from Plasti & Pack EXHIBITOR
BOOTH NO.
EXHIBIT CATEGORY
Pak Turk Enterprises
2-162
Disposable Packaging
Borouge
2-160
Petrochemicals
Argosy Enterprises
2-220
Industrial Lubricants
Haitian Machinery
2-130
Injection Molding
Al Abd Corporation
2-125
Food Processing & Packaging
Simpexco
2-161
Raw Material
M. Nadeem Engineering
2-193
Packaging Machines
Kasam Brothers
2-224
Chemicals & Adhesives
DE Technics
2-127
Packaging Machines
Cirrus Trading
2-200
Pipe Extrusion
Megatech International
2-185
Disposable Packaging
Guangzhou Vanta Packing Machines
2-178
Filling Lines
Universal Packaging Company
2-164
Converters
TAIZHOU CITY LIYANG PACKAGE
2-137
Heat Transfer Printing Machine
FAITH MINERALS COMPANY
2-139
Raw Material
Novatex
2-223
Pet Resin, BOPET
Global Star Hong Kong Development Limited
2-180
Dies & Molds
AKEI Holding Hong Kong
2-132
Extrusion & Blow Molding Machines
Guangdong Designer Machinery
2-133
R&D and manufacture of plastic machines, Extruder, Thermoforming machine, Biodegradable Starch Sheet Extruder, Packaging machine and Moulds
Liansu
2-165
Pipe Extrusion Machines
Suzhou Tongda Machinery Co. LTD.
2-102
Blow Molding Machines
Macchi SPA.
2-169
Extrusion Machines
Bonita International
2-201
Industrial Electronic
Shenzhen Hypet Co. Ltd.
2-199
Pipe Extrusion Machines
Polymer & Packaging Intﾂ値 Magazine
2-202
Industrial Magazine on Plastic, Packaging & Related Industries
Founded in 1985, USTUN PLASTIK has become one of the leading companies in the plastic packaging sector in Turkey. With our manufacturing facility spanning 8000 square meters closed area and 2000 square meters open area, our operations are manned by 250 dedicated employees while our production lines generate more than 6000 tons of output annually. In line with our mission statement of offering high quality products at reasonable prices while ensuring complete customer satisfaction, we lay special emphasis not only on investing in technology and focusing extensively on greater research and development but also in enhancing the learning curve of our employees. In time to come, USTUN PLASTIK also aims to become the brand of choice internationally. While our product line comprises food packaging material that is extensively used by related industries in Turkey, we also export to countries including the UK, Spain, France, Italy, Syria, Saudi Arabia, Jordan, UAE, Azerbaijan, Ukraine, Romania, Iran, Lebanon, Georgia, Bahrain, Senegal, Tanzania, Yemen, and Iraq. 12 | Polymer & Packaging
World Premier Trade fair for Plastic & Rubber
K - 2013 The Global Plastics and Rubber Market on 170,000 sqm of Net Exhibition Area at K 2013 In October in Düsseldorf At this years K trade show, the plastics and rubber industry demonstrates a dynamic, innovative and confident stance. These last months, machinery manufacturers, raw material producers and processors all over the world have been working flat out. They want to be able to impress experts visiting the industry s most important trade show from 16 until 23 October, 2013, with their latest innovations. At the K 2013 Preview in Düsseldorf, which takes place from 1 until 3 July 2013, eighty journalists with a special focus on the plastics and rubber industry from more than thirty countries will receive an update on the current state of affairs in the run up to the trade show. The organisers of K 2013 will inform their guests of the latest trends in the global plastics and rubber markets. Thirteen renowned exhibitors will provide a preview of their trade show premieres, which will be on display at the exhibition site in Düsseldorf in October. About 3,100 exhibitors from all segments of the industry will present their latest developments at K 2013. The range of companies includes global players as well as start-up companies, the products on show encompass standard polymers as well as highly specialised products such as tailor-made moulds. Among the exhibits are essentials for creating ideal production conditions such as industrial feedstock, machines and systems but also complex solutions for diverse user
industries. Thanks to this wide variety, the most proliferate topics of the industry energy, resource and material efficiency are covered as well as special segments. The economic situation in the run-up to K 2013 is not all rosy. Particularly Europe, where many countries are confronted with the Euro crisis and the resulting developments, is struggling with declining output rates in the automotive industry, the slackening construction business, rising energy and raw material prices. Despite the slightly upbeat verdict of the German Institut für Weltwirtschaft , which has currently detected a slight improvement in the global economy, the predominant market dynamic seems to be slow and easily disrupted. Despite the uncertainties, Ulrich Reifenhäuser, President of K 2013, is carefully optimistic. The present situation is very complex and hard to assess. Some global regions such as Japan show significant growth, others, like the US, are experiencing a slight recovery, and China is anticipating a 7% rise of its economic growth rate for 2013, despite the general downward trend. Meanwhile, Europe s economies remain weak. Nonetheless, the associations of the plastics and rubber industry are rather optimistic. We anticipate a stable year, at worst, a slight decline, but more likely some growth. We are convinced that K 2013, the most important trade show, will revitalize the industry. Thanks to the abundance of
innovations presented in October in Düsseldorf, we are confident that the industry will experience a new impetus! Among the companies from 60 countries, suppliers from Europe and particularly from Germany, Italy, Austria, Switzerland and France will again be out in strength. Particularly heartening is that the countries of southern Europe so strongly affected by the euro crisis such as Italy, Spain and even Greece will have a stable or even stronger presence at K 2013 than in 2010. A definite advantage for trade visitors from all over the world who do not have to miss out on the products and processes from these countries. At the same time, the situation presented at K 2013 provides a clear indication of the ongoing changes in the global market: since the last K exhibition in 2010, the number of exhibitors from Asia and the overall area booked by Asian businesses has increased significantly. The net exhibition area of the largest five Asian exhibiting nations of China, Taiwan, India, Japan and South Korea has grown by almost one third (more than 25,000 sqm in 2013 compared to 18,000 sqm in 2010). Having recovered from the industry s crisis years, US exhibitors are back in force, with an overall net exhibition area of more than 5,300 sqm (2010: 4,402 sqm). The growing plastics industry of Turkey will display its products and services on almost 4,000 sqm of net exhibition area, which is 1,000 sqm more Polymer & Packaging | 13
than three years ago. The strong German plastics and rubber industry has booked 43 % of the overall net exhibition area of 170,000 sqm. After Germany, Italy has traditionally become established as the largest non-domestic exhibiting nation, and this year, Italian businesses have reserved more than 26,000 sqm of net exhibition area for displaying their products and services. Strong contenders are: China (9,600 sqm) Austria (8,100 sqm) Switzerland (6,400 sqm) Taiwan (6,100 sqm) India (5.300 sqm) The Netherlands (4,700 sqm) France (4,500 sqm) The UK (3,100 sqm) Werner M. Dornscheidt, President and CEO of Messe Düsseldorf, is convinced: Nowhere else in the world will you receive such a comprehensive overview of the sheer variety and the complete range of raw materials, processing and application technology than at the K trade show in Düsseldorf. As always, the impressive number and international provenance of our exhibitors guarantee that all segments of the industry are represented at world market level. They stand for a wide range of products and maximum innovation density. I am sure that many good deals will be made in Düsseldorf this year and that the specialist industry will see many new developments with potential for the future! Traditionally, the machinery and equipment suppliers represent the largest exhibitor group of the K trade show. This year, they will take up 119,000 sqm, more than two thirds of the overall exhibition area and about 4,000 sqm more than in 2010. Halls 1 to 4 and 9 to 17 are reserved for exhibitors of machinery and equipment. They will show the most extensive range of trend-setting production, processing and machining technologies world-wide. The live presentations of complex production units shown in Düsseldorf s K exhibition halls are unique. Manufacturers of raw materials, semi-finished goods, and industrial components will present their products and services in halls 5 to 8a. The raw material producers will take up a net area of 37,500 sqm, almost 3,500 sqm more than in 2010 and almost one fifth of the overall exhibition area. Important subjects include the optimization of standard plastics, biopolymers, specialties and reinforced plastics as well as the latest developments in the structural plastics and functional polymers segments for the production of pioneering applications. The segment representing semi-finished goods, industrial components and reinforced plastics
14 | Polymer & Packaging
product will present its products and services on a net area of 11,000 sqm, which is the same as in 2010, accounting for 7% of the overall area. Energy-efficient and environmentally-friendly product solutions will be at the centre of interest. Thanks to optimized raw material and composites selection, specialist visitors can look forward to a wide selection of novelty products and applications. The K trade show will present the industry s complete value-added chain, from raw material production right through to machine engineering, including a comprehensive overview of downstream equipment and processing systems. At the K trade show, rubber is also a firm and indispensable element. Compared to the plastics industry, the rubber segment is rather small, but it is highly innovative and plays a major role for important consumer industries. The rubber street of hall 6, a firmly established part of the K trade show in Düsseldorf, will be comprised of ten exhibiting companies. In the wake of the current trend, the rubber industry will not only exhibit traditional rubber types but will also provide an insight into developments in the thermoplastic elastomer segment. Visitors interested in elastomers will be offered a Rubber & TPE Pocket Guide for the first time. This new feature will provide specialist visitors with a comprehensive overview of the relevant exhibitors. The highly diversified product and service range presented by K exhibitors will be enhanced by a range of accompanying events, which promises additional benefits for visitors. Apart from the special show Plastics move the world , the premiere of the new Science Campus is well worth a visit. The latter event involves presentations by universities and research institutes on pioneering subjects. The shared venue of hall 7.0 provides ideal conditions for a comprehensive overview of the activities and results of scientific organisations and offers ample opportunities for a lively discourse between research and economy. Exhibits relevant to the most important area of innovation of printed electronics will be on display at many booths. Both printing technology and plastics for functionalised surfaces such as RFID solutions, flexible displays and OLEDs will be presented to specialist visitors from the processing and consumer industries. A special brochure will help visitors to find all exhibitors that are active in the printed electronics segment. A new Innovation Compass, which shows a direct way to the highlights of all exhibitors, will help visitors navigate the abundance of new developments. It is comprised of a search matrix for innovations that introduce important improvements or even groundbreaking changes. The Innovation Compass, available about six
weeks prior to the trade show at www.konline.de, will allow visitors to prepare their personalised visit to the exhibition area in Düsseldorf. Although K 2013 in Düsseldorf has not started yet, on www.k-online.de it is already well under way. In the run-up to the trade show, all visitors can access general information on K 2013 and exhibiting companies, find out which countries are represented and read all about the innovations on show in October. The preliminary list of exhibitors updated daily is only one feature of this diversified online service. News from the industry, new developments in different plastics-related research areas and links to specialist media and science institutes provide users with a leading information edge. If required, K news can be sent to users as an electronic newsletter. With its personalised services including the personal notebook My Organizer, My Calendar for online appointments and My Catalogue for compiling a personal exhibition catalogue, the K portal offers many useful features for preparing your visit to the K trade show. The exhibitors of K 2013 now also present their product range and company information in a central exhibitor database. This feature is an ideal tool for visitors strategically searching for companies, product groups or product information. If that is not enough, visitors can resort to the K Matchmaking feature. This online tool is designed for those with specific questions for exhibitors or searching for products that meet special requirements. The internet platform now offers a new ticket service, allowing users to buy their K 2013 ticket online. With www.k-online.de, the trade show ticket is only one click away and the eTicket is less expensive. Purchased online, a day ticket will cost EUR 49, the official price for tickets purchased at the counter in Düsseldorf is EUR 65. The online three-dayticket will cost EUR 108 instead of EUR 135 for tickets acquired at the counter. Another benefit of the online ticket is the fact that it doubles as a free ticket for local public transport in the Düsseldorf area. The new K-App provides users with all important information on mobile devices. About 200,000 specialists from all over the world are expected to visit K 2013 in Düsseldorf. The trade show starts on Wednesday, 16 October and ends on Wednesday, 23 October, and will be open daily from 10 a.m. until 6.30 p.m.
One material provides the answer to the present and future challenges Special show at K 2013: Plastics move the world Plastics move the world particularly in connection with the major challenges faced by our modern society. Incredibly versatile, lightweight, safe, durable, economic and impressively energy-efficient with their multitude of positive properties, polymers are indispensible in most areas of our daily lives. And the material s success story is far from over, as it moves into new areas of application all the time. Plastics move our lives in more ways then one, both in the figurative and the literal sense. About 3,100 exhibitors will document this enormous potential at the K 2013, the largest international trade show for plastics and rubber, which starts on 16 October and ends on 23 October in Düsseldorf/Germany. Selected exhibits will also be presented at a special show with the title Plastics move the world . They illustrate the many improvements already attributed to plastic products today and their potential contribution to future challenges, e.g. by protecting global resources in the future. The special show in hall 6 takes a broad approach to the meaning of the word to move . It includes not merely the direct contributions of plastics to different areas of mobility, but also emotional aspects, e.g. their effect on art and design, and their potential for solving future problems such as demographic growth, increasing energy consumption and climate change. As usual, the special show will be hosted in a special area which provides a combination of information, interaction and show elements.
The focus will be on five topical areas which represent the vast applications and properties of polymer materials. The motto Plastics move people for example focuses on personal mobility with the help of cars, trains, public transport and aircraft as well as on the mobility of the disabled, who benefit from the ongoing advancement of modern aids. The sustainability of plastic products is taken into account by all topical areas. Emotional aspects are also considered. Polymer materials often move people in sports or art in both categories the show presents surprising examples of the potential of plastics. This also concerns competitive sports, sports for the disabled and leisure sports. Without polymer materials, modern design would not be possible. These materials can be found in theatres and museums as well as in architecture. Innovations and visionary developments are presented in the Plastics move the future section of the special show. This includes energy-efficient living as well as future medical applications, water treatment and the food supply for a growing global population. Polymer materials act as versatile troubleshooters in many areas of application. In addition to presentations, the special show also features VIP lectures as well as daily discussion panels (except for Sunday and the last day of the exhibition) with experts from science and the industry. On the second day
of the trade show, the first VIP, Bertrand Piccard, renowned pioneer in the are of solarpowered aircraft, will present his project. His Solar Impulse craft is currently on its longest mission, crossing the USA from San Francisco to New York using only solar energy. In 2015, he plans to complete a non-stop flight around the globe with a solar-powered aircraft. The daily discussion panel will also deal with complex issues such as marine debris, which threatens oceans and coasts. Due to the fact that these discussions are attended by international K 2013 visitors and exhibitors, they will be conduced alternately in German and in English. The special show s traditional Youth Day will take place on Sunday, 20 October. This event will feature several panel discussions between young adults and highranking scientists and representatives of the plastics industry. The special show will provide interesting information, not just for exhibitors and specialists visiting the K 2013, but also for a wider public audience. This well-established event enhances the presentations given by exhibiting companies as it provides an insight into pioneering, innovative aspects and promotes the unique position of the K Düsseldorf as a trend indicator and innovation forum for the entire industry. The show is hosted by the German plastics industry under the aegis of PlasticsEurope Deutschland e.V. and Messe Düsseldorf.
Polymer & Packaging | 15
Antimicrobial Packaging Technologies and Testing Emphases The antimicrobial and anticorrosive requirements for food are stricter than those of pharmaceuticals, daily chemistry and electronic products; this is because food is composed of perishable components. The common antimicrobial and anticorrosive method is to add anticorrosive agent into food, yet, the safety of this method is still under dispute. The introduction of antimicrobial package has greatly relieved the dependence on food anticorrosive agent, and has become an effective means to improve food preserving quality and reduce the amount of additives. 1.
The Limitations of Anticorrosive Agent
The traditional antimicrobial and anticorrosive method for food is to add anticorrosive agent inside it. However, there exist several remarkable issues for this method. Firstly, the addition of anticorrosive agent to food would influence food safety. Though some anticorrosive agent has been applied for years, the potential safety hazard has been exposed with the deep-going researches. For example, benzoic acid, which has been widely applied, has led to the reports of several accumulating toxication. Secondly, from the viewpoint of the customers, though anticorrosive agent has been widely used, the acceptance of food with such elements is inferior to those without them. Thirdly, there would be a period of time, relating to the amount of anticorrosive agent inside, for such agent to release to the food surface and bring the antimicrobial and anticorrosive functions into full play. Therefore, even if the anticorrosive agent is added inside food, there would be a high requirement for the environment. 2.
Antimicrobial Package
The principle of antimicrobial package is different from anticorrosive agent. The antimicrobial function is realized through adding antimicrobial agents inside or on the surface of the packaging materials. Those antimicrobial agents would scarcely permeate the antimicrobial elements into the food, and thus, the food is safer. In this way, antimicrobial package provides a way for the reduction of a n t i c o r r o s i v e a g e n t s a m o u n t . T h e antimicrobial package can be used individually, or with anticorrosive agent(s). The antimicrobial package is not required to instantly kill hazardous microbes, but required to restrain the growth and reproduction of those microbes in the long term so as to protect the food. To achieve this aim, controlledrelease technology should be applied in antimicrobial package designing, so as to release the antimicrobial agent in the proper speed that matches with the growth kinetics. Antimicrobial agent is the core of antimicrobial packaging system. Such agent has its specific antimicrobial activity, and the suitable agent should be chosen according to the activity of the target microbe. Antimicrobial chemical elements fit for food packaging include organic acid and salt, sulphurous acid, nitrous acid, antibiotics and ethanol, etc. Those elements are categorized into three states: solid state, solute state and gaseous state. Comparing with solid and solute antimicrobial agents, gaseous antimicrobial agent has remarkable advantages. They can evaporate and permeate into the places where the non-gaseous agents
16 | Polymer & Packaging
can not reach. Meanwhile, gaseous antimicrobial agent is in the headspace and has no direct contact with food. It s not easy for such antimicrobial agent to permeate into the food so that the food safety is guaranteed. The inner environment of the package is directly influenced by the antimicrobial materials and their characteristics, and thus, the antimicrobial effects would be influenced. The hydrophilic property of the antimicrobial agent is usually better than the film materials. At the same time, the pores inside the materials would be filled with antimicrobial agents. So, the adding of antimicrobial agent would lead to slight changes to materials mechanical and processing properties as tensile strength and burst strength, etc., as well as gas and water vapor permeability, hygroscopic property, oil resistivity and glossiness, etc. The functioning of some antimicrobial agents has close relationship with the characteristics of the packaging materials. For example, utilizing anti-oxidant to create a non-oxygen environment to limit the mildew growth and the subsequent deterioration brings high requirements for the permeability of the packaging materials. When using gaseous antimicrobial agents, the oxygen and water vapor barrier properties of packaging materials, and the permeability of gaseous antimicrobial agent itself against the packaging materials should be considered. For example, ethanol s permeability against the packaging materials needs to be considered for gaseous ethanol antimicrobial packages, and ethanol permeability test against the packaging materials is a necessity to avoid failure of the antimicrobial packaging system. 3. Permeability Testing Demands for Antimicrobial Packages The influence of antimicrobial agent to materials relates to additive amount and type of the antimicrobial agent. Therefore, a complete and comprehensive performance testing for antimicrobial packaging material is a must, so as to avoid losses caused by the decreasing material strength. As to antimicrobial packages with gaseous antimicrobial agents, the permeability of such agent should be especially noticed. The gas permeability of flammable, explosive or poisonous gases like chlorine dioxide or ozone, etc., can be tested by differentialpressure method, a method for common gas permeability testing. However, such instruments should be customized, and structural adjustment should be made according to characteristics of the corresponding testing gases. Labthink has
provided customers with several customized differential-pressure method permeability instruments for specialty gas testing. There have been great differences between the testing methods for organic gases and inorganic gases. Organic vapors, such as ethanol, may lead to swelling of the film, and subsequently, remarkable changes to the permeability. Globally, the research of this field is still at the developing stage. Now, Labthink has newly introduced PERMETM 2/410 Organic Gas Transmission Rate Test System, which applies the balancing-method to test the organic gas permeability. This instrument has patent structural design, and is composed of permeability cell, organic gas generating device, timed sampling valve, separation chamber and FID (fire ionized device), etc. It s easy to control, and it s the most automatic organic gas permeability testing instruments in the market. Now, Labthink Lab has accomplished organic gas permeability testing against several common flexible packaging films. Those organic gases include ethanol, acetone and toluene, etc. Some of the data can be seen in Chart 1. Comparing the ethanol transmission/permeability rate with oxygen and water vapor transmission/permeability rate through the above-mentioned packaging materials, it s easy to find out that there is no rule of coincidence or similarity between the transmission rates of organic gases and oxygen as well as water vapor. Though the permeability the packaging materials is the determinant factor for organic gas transmission, types of the organic matter and the characteristics of the materials would influence the final data. Therefore, it would be an important cause of failure, if the organic gas permeability is inferred by the common gas transmission/permeability rate (GTR) or water vapor transmission/permeability rate (WVTR) with inevitable errors. With the growing packaging requirements and increasing focus on food safety, antimicrobial package has been widely used in food packaging. Yet, antimicrobial package is not simply a combination of antimicrobial agent and package; the two sides are interacted and mutually restricted. The most appropriate balancing point between the two sides is to be achieved with the help of material testing. More and more testing items has evaluated from qualitative testing to quantitative testing with the progress of testing technologies. The development of those testing technologies would eventually promote the progress and development of antimicrobial packages.
The new air based system excellent opportunity for PVC-O effeciency
to conditioning the plastic. A novel project was started with the only purpose of gathering the best advantages from both systems: a highly stable process allowing the highest orientation and thus reporting important savings in raw material, being efficient at the same time, easy to use, and fully compatible with any lay-outs. After a thorough research and taking into consideration all the improvements that needed to be implemented the conclusion was that water could not be anymore the means of orientation and the use of air would be the key for success. A NEW AIR BASED SYSTEM FOR PVC-O
Nowadays when the world is in crisis the manufacturers have to juggle to make their business profitable. The new air based system developed for bi-oriented PVC pipes brings excellent opportunities for PVC-O, improving performances and savings in raw material, becoming the key for competing in the market. The molecular orientation is known since the 50´s, the systems for PVC-O piping to this day are clearly define in two; in batch and in line systems, both having their own advantages and disadvantages. In batch systems where orientation is produced by means of the expansion of a feedstock pipe against the wall of a tubular mold which provides the final diameter to the pipe. On other hand we have in line systems, where the orientation is produced expanding the pipe by means of a rigid mandrel, a flexible device or others, during the own extrusion process.
· Lay-outs in a linear shape, easy to adapt to standard factories. In spite of these evident advantages, in batch system were inefficient mainly because of their low output per mold and the high manufacturing costs due to labor and a high consumption of energy. During the process of orientation the plastic has to be heated up and cooled down 80 ºC, at the same time the mold and the water involved needs to be heated and cooled and this is the reason behind its high energy consumption. Considering the specific heat for 3 materials (water 1 Kcal/Kg ºC, Steel 0,11 Kcal/Kg ºC, PVC 0,26 Kcal/Kg ºC) we consider the following formula.
Q = á · m · ÄT Where: Q: Heat; Energy consume
In batch systems advantages:
Á: Specific Heat
· Maximum degree of orientation recognize by the standards.
ÄT: Variation in Temperature m: mass
· High stability because the conditioning of the pipe is carried out piece by piece.
At this point there were still important issues to be accomplished from a technical point of view. The pipe conditioning was one of them. The pipe had to be heated up homogeneously with extreme accuracy in the three cylinders coordinates: axial, hoop and radial. Other kind of heating methods like radiation or contact were discarded because they were not able to guarantee these specifications. A special oven was designed for that purpose, with high internal air movement speed, allowing close to a hundred renovations per minute. Isolation was very carefully designed to prevent heat looses and noise. Up to this point the prospects of output and homogeneity were fulfilled. The speed of expansion is very important in orientation. This was another important challenge to deal with. Whereas the speed of expansion is quite easy to control using water with air this aspect is more sophisticated The expansion is executed by communicating tanks of compressed air at higher pressure than the one needed to expand. In the first place, the pipe to expand is at atmospheric pressure, and the tanks are at high pressure. The graphic bellow represents the flow that is able to pass through a hole of certain diameters depending on gradient of pressure between two different pressures.
· Big range of products, this kind of systems allows most of the geometries and large wall thickness and diameters, making possible to design pipes of any pressure or diameter. In line systems brought a clear improvement with regards to the disadvantages of the in batch systems mainly in: · Orientation integrated in the line drastically reduces the cost of manufacturing PVC-O pipes.
From the beginning the system to improve was the in batch system, mainly because of the stability and the target class 500. The main points to be improved were: Speed and reduction of energy, of needed space and labor. The use of air brings many advantages: the process is clean, safe and leakages do not pose a problem anymore. The process with air spares the use of expensive stainless steel or anticorrosive material. The process is faster because the conditioners of air in this case, are much faster than the water ones.
From this, we know that only 0,7% of the energy applied in the process is really used
As show in the experimental graph, in order to maintain constant, for example, a certain flow of 3000 liters per minute, from a deposit
Polymer & Packaging | 17
of 9 bars to the pipe at atmospheric pressure, the passing orifice has to change from a certain diameter to a diameter 4 times bigger. Thanks to the electronic regulation and fast answer pressure detector and servo valves, this required flow can be maintained during the main part of expansion stage, and a constant sped of expansion in guarantee. Air chilling was another drastic change in the PVC-O conception. It consists in freezing the pipe from orientation temperature to a temperature below Vicat doing it without water.
GLOBAL INDUSTRY EXHIBITIONS
After a research project just for freezing was started. Aspects such as speed of flow, geometry of pipes or even air humidity were considered and the results obtained, as shown in graph 2 were used to design the final equipment, optimizing energy consumption and output. A real machine was built to produce pipes from 160Ø to 400Ø mm and tested in regular production with an extrusion line based on a Cincinnati Argos 93. The mixed used was based on PVC resin from Solvin and Naftosafe from Chemson. The following results were obtained:
These huge savings resulted from maintaining constant the mold temperature and avoiding the use of water as fluid for the process. The energy for conditioning is only applied to the plastic to be processed. The equipment is so compact that the length of the whole line for manufacturing up to 400 Ø mm can be of 45 m and the width is less than 4 meters. The line is fully automatic, so no extra labor is needed. Other positive features were also implemented such as swiftness in mold changing, an operation that now takes less than 1 hour for 2 people. All the technical developments were implemented in a recipe system, in this way the manufacturer only has to choose the pipe he wants to produce and all the parameters change automatically to the new conditions. The global situation with ever increasing prices of raw materials and the standardization activities in many countries are making of PVC-O one of the most attractive investment in the plastic industry. The superb quality of the product, in addition to the important raw material savings that can reach 50% in many cases, and the access to more profitable markets for high pressure applications, forecasts a brilliant future for this material.
18 | Polymer & Packaging
VIETNAM PLAS Sept 03 - Sept 06 2013 Vietnam
PACKTECH EXPO BALKAN Sept 25 - Sept 28 2013 Serbia
PLASTEX CENTRAL ASIA Sept 03 - Sept 09 2013 Kazakhstan
SAURASHTRA PLAST Sept 26 - Oct 2 2013 India
APPLAS Sept 03 - Sept 06 2013 China
TECHNO PHARM Sept 26 - Oct 2 2013 Germany
CPM-CHINA PLASTICS MATERIAL Sept 03 - Sept 06 2013 China
MERCOPAR Oct 01 - Oct 4 2013 Brazil
PLASTEC Sept 03 - Sept 05 2013 Finland
PLASTICS PRINTING PACKAGING Oct 04 - Oct 6 2013 Kenya
INTERPLAS VIETNAM Sept 04 - Sept 06 2013 Vietnam
K SHOW Oct 16 - Oct 23 2013 Germany
PLASTI & PACK Sept 05 - Sept 07 2013 Pakistan
SIANE Oct 22 - Oct 24 2013 France
PLASTEC MIDWEST Sept 10 - Sept 12 2013 USA
SASO Oct 23 - Oct 27 2013 Croatia
PET POINT Sept 16 - Sept 21 2013 Germany
INDIA COMPOSITES SHOW Oct 24 - Oct 26 2013 India
TUBE SOUTHEAST ASIA Sept 17 - Sept 19 2013 Thailand
IPF Oct 28 - Nov 1 2013 Japan
UZCHEMPLAST ESPO Sept 18 - Sept 20 2013 Uzbekistan
PLASTEX SIBERIA Oct 29 - Nov 11 2013 Russian Federation
ALIHANKINTA SUBCONTRACTING Sept 24 - Sept 26 2013 Finland
PLASTEX UKRAINE Oct 31 - Nov 1 2013 Ukraine
Plastics will benefit from reshoring initiative The migration of manufacturing from North America to China began 20 years ago when companies expected to reduce production costs 30 to 40% through cheap labor and other incentives. The savings never matched expectations. Now that labor costs, tariffs and related production expenses in China are rising, manufacturing is moving again this time to North America in a trend called reshoring. With K 2013, the world s largest trade fair for plastics and rubber, coming up in Düsseldorf, Germany, from 16 to 23 October, it seems appropriate to review how things have developed over the years. Reshoring, identified in 2012, is the transfer of manufacturing from China back to the U.S. and Canada. It is happening because China is becoming too expensive in labor and other costs to sustain the margins North American companies want. Costs between the U.S. and China are heading toward equilibrium, says David Sievers, principal, strategy and operations practice at The Hackett Group, a global consulting firm in Miami, Florida. When expenses are counted, Sievers says it costs a U.S. manufacturer ¢84 on the dollar to make and ship products back to North America from China. At this level it s a toss-up as to whether any economic benefit is realized from manufacturing in China. A key driver is labor. Wages in China are rising at an annual rate of 15 to 18%. There are rising costs in other areas. Tax incentives are expiring, energy is expensive and shipping costs are increasing. Sievers refers to all such expenses as total landed cost (TLC). Others include: capital investments; production costs; handling and inventory; transit, tariffs and other taxes; receiving and distribution in North America;
product inspections; correcting quality problems; and labor.
an aggressive 1.5% reduction in cost of goods (COG) sold for 2013 to drive margin growth.
The 16% differential between TLC and U.S. production expenses, Sievers says, happened this year. He expects it will result in many companies reshoring to North America. Hackett Group hasn t looked at plastics opportunities, says Michel Janssen, chief research officer, but it s reasonable to expect that plastics will benefit from primary manufacturers bringing work back.
A major factor behind this is gains in internal manufacturing productivity, which could account for 50% of cost reductions. Hackett Group reports that outsourcing was aggressively used through 2011 by companies to reduce manufacturing costs. In 2011, the average COG reduction by companies was 0.3%. The shift away from outsourcing as a cost-cutting strategy and toward internal productivity began in 2012, when companies increased total cost-reduction efforts to 1.5% that year. If they are successful in reducing total COG by 1.5% in 2013, companies will have cut these costs tenfold since 2011.
Another analyst, Boston Consulting Group of Boston, Massachusetts, identifies seven manufacturing sectors as near a tipping point when it comes to reshoring. One is plastics and rubber products. But others include areas of high plastics use transportation, appliances, electrical equipment, computers and electronics. Some say the impact of reshoring on jobs in North America will be considerable. Harry Moser, who founded the Reshoring Initiative in Kildeer, Illinois, believes reshoring has generated 50,000 U.S. manufacturing jobs across all industries in the past three years, and could result in 500,000 new manufacturing jobs by 2015. Moser developed cost-analysis software called Total Cost of Ownership (TCO), which is free to registered users at his website (www.reshorenow.org). This lets decisionmakers evaluate the real price of manufacturing in China by comparing cost factors. He believes that if companies analyze offshore manufacturing with TCO, they will see savings based on product price evaporate. One aspect of operations in North America that is influencing reshoring is the growing productivity of workers and efforts by companies to reduce costs. In March 2013, The Hackett Group released a study that states U.S. manufacturers in all sectors are targeting
Greater productivity, cost reductions and reshoring are also expected to increase export activity and add 2.5 million to 5 million U.S. jobs by the end of the decade, says Boston Consulting Group. In a study last year, the company stated that cost reductions and comparatively low prices for electricity and natural gas, could by 2015 give the U.S. an export cost advantage of 5 to 25% over Germany, Italy, France and the U.K., as well as Japan. This would result in the U.S. taking an export share of 2 to 4% from the European countries and 3 to 7% from Japan by the end of the decade. This could increase U.S. export revenue from these countries by $90 billion ( 69 billion), and globally by $130 billion ( 99 billion). For almost 20 years China was touted as the future of manufacturing Goliath on an unstoppable global juggernaut. Reshoring shows that a commitment to productivity and cost cutting, product quality and customer service is a better model for sustainable growth than a strategy based almost entirely on price. Source: Ms. Eva Rugenstein / Desislava Angelova K Show 2013
Polymer & Packaging | 19
TECHNOLOGY IN ACTION Launching Ceremony of Ad Convertex SL 100
Special Feature: Capable of producing 100 block bottom Cement bags in one minute Venue: Manufacturing and testing facility of BSW and W & H Location: Prostejov, Czech Republic Representative in Pakistan: K-Group
20 | Polymer & Packaging
Gulf Petchem Industry Plans 2013 Growth Strategy
Gulf petrochemical producers are exploring opportunities to expand capacity, diversify production and realize the region s full potential to meet oncoming challenges and opportunities, said an expert. The petrochemicals industry is bracing to sustain competitiveness keeping in mind the new market realities, remarked Dr Abdulwahab Al-Sadoun, the secretary general of the Gulf Petrochemicals and Chemicals Association (GPCA). His remarks come following the success of the 7th annual GPCA forum organized in Dubai in the month of April. The theme of the forum, Sustaining competitiveness in a rapidly changing world, reflected the scale of the challenges and opportunities facing the regional petrochemicals industry, he stated. According to him, the petrochemicals capacity was continuing to expand in the GCC with the regional capacity surging 10 per cent in 2011 to reach 121 million tons per annum. Between 2007 and 2011 regional petrochemicals capacity expanded at 13 per cent compounded annual growth rate, said Al-Sadoun, citing the latest GPCA data. At the same time, wage inflation and rising raw materials costs, incurred as the global economy edges out of recession, are having a knock-on effect on the bottom line of the GCC petrochemicals sector, he added. The success of GPCA Forum highlights the Gulf petrochemicals industry s remarkable growth over the years. The industry has come so far by making optimum use of the opportunities available. No doubt, the regional
22 | Polymer & Packaging
industry is facing uncertainties but we have managed to demonstrate strong growth in spite of the challenging market conditions, said Al-Sadoun. The GPCA chief urged the regional industry to continue working together, more closely than ever, to sustain competitiveness in the face of the new market realities. "We are optimistic about the future and aim to achieve growth focusing on technology, innovation and long-term partnerships," he noted. GCC currently accounts for 20 per cent of the world s proven natural gas reserves. Despite the cost competitiveness of Gulf-based petrochemicals producers built on such strategic assets, experts at the forum urged the industry to prepare themselves for new challenges, especially because a cooling Chinese economy will lead to reduced demand for Gulf exports. Randy Woelfel, the CEO of Nova Chemicals, said shale gas discoveries in North America were adding significant volumes to global energy supplies, which is another area of concern for Gulf producers. While the shale gas boom in North America promises to provide fresh impetus to petrochemicals producers there, options are getting limited before Gulf producers, as the Eurozone offers limited growth opportunities amidst the current financial crisis, he pointed out. However, the most worrying problem of all, the expert pointed out, was that the region appears to running short of natural gas despite its massive reserves.
According to the latest BP Statistical Review of World Energy, the region is sitting on an estimated 1,496.2 trillion cubic feet of natural gas. However, this is not enough to sustain the growing demand for gas. More and more industries besides petrochemicals are now competing for natural gas. The Gulf s rapidly growing population is also placing ever increasing demands on gas for electricity generation and water desalination. Moreover, price controls are deterring further production of existing reserves, to the extent that Gulf countries may account for 20 per cent of proven global gas reserves but only 11 per cent of total output, the expert added. While global consumption plateaued over the last 12 months, gas use in Saudi Arabia jumped more than 13 per cent, the highest annual increase after China. Against the backdrop of weakening global growth, Sustaining Competitiveness by producers and exporters will remain a priority for all in the hydrocarbon sector in the days ahead. In his keynote address, Chad Holliday, the chairman of Bank of America, stressed that sustainability within the petrochemical industry was critical to the industry s long-term competitiveness. The forum also highlighted encouraging developments for the industry. Beside the expansion of the indigenous petrochemical production capability, the Gulf producers from Saudi, Kuwait, Qatar and Abu Dhabi are embarking on an aggressive growth strategy through the acquisition of assets in major markets.