Editor s Note
These are encouraging times for the packaging sector, and Polymer and Packaging International is excited to bring you news of this exciting development. The growth in this sector has now created a demand for an official representative of the industry. You can look forward to an exclusive interview of their first elected Chairman, where current challenges and remedial plans to address these issues have been discussed. Our Magazine has received recognition and has been designated as the Sponsored Media Partner at the upcoming mega events of this sector being organized in China, UAE and Sri Lanka. Our correspondents will be covering these events exclusively and the magazine will be officially circulated at these events. Our sponsors and advertisers can take advantage of this opportunity to market themselves in a truly global environment. As we predicted in the previous issue that the landmark interim agreement between Iran and the world s six powers carries unprecedented potential for trade and investment in all major sectors including Petrochemicals; this has now been echoed by our Ministry of Commerce & Trade who recently highlighted the importance of trade between Pakistan and Iran that carry high prospects after the lifting of the international trade embargo from Iran. Those with the capability to think ahead are going to benefit from their well weighed initiatives in this regard. It is good to see that the Government is taking steps to address the energy crisis that has badly affected industry; news about foundation laying of new energy projects with various power production capacities are streaming in! Perhaps the most positive aspect of this is that the Government s intent is clearly visible to change the energy mix from furnace oil to other more economical sources like coal, hydel, nuclear and solar power. The increase in the energy production capacities and a shift to non-thermal power units is laudable. At Polymer and Packaging, we are heartened by the support from our well-wishers and customers; our endeavors for the advancement of the industry and our effort to create a forum for the industry are being recognized and appreciated. We have received testimonials from Pakistan as well as leading European Manufacturers and are indeed honored to receive these messages. We, take such testimonials as a source of inspiration for continuing our endeavors to excel and achieve even more!
Content Editor s Note
03
News
05
Interview
10
K-Group Principals on Pakistan s Market
14
Plasti&Pack The Ideal Platform to Access Pakistan s Plastic & Packaging Industry
16
Article - Twice as Fast as the Competitor
18
CHINAPLAS 2014 to Drive the Evolution of Sustainability
20
Mr Ali Morani, Chairman, Flexpac Pakistan
Cover Story
OUR TEAM Managing Editor S.H. Rizvi editor@thesis.com.pk
Editor Ahmed Qaiser qaiser@thesis.com.pk
Business Development Manager Akbar Baseer Khan akbar@thesis.com.pk
Layout & Visualization Rehan A Hashmi rehan@thesis.com.pk
Address: Room No. 706, Business Plaza Mumtaz Hassan Road, Karachi-74000, Pakistan Phone: +92-21-3246-1722 Website: www.thesis.com.pk
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NEWS
PPMA Urges Industries to Stop Faisal Akhtar Appointed New BASF Pakistan MD Energy Waste, Increase BASF has appointed Faisal Akhtar as Managing Production Pakistan Plastic Manufacturers Association (PPMA) has emphasized that all the manufacturers should concentrate on increasing the production and putting an end to the waste of energy. In an interview, Shakeel Ahmed, the Chairman, PPMA said that in view of the recent energy crisis and the price hike in raw materials on a daily basis, it has become imperative to take measures for stopping the waste of energy and ensuring maximum output. Mr. Ahmed said the industrial units should promote the use of latest technologies for saving the energy which will lead to savings in their production costs while their income will also enhance as a result of increase in production. Source: Daily Express
Engro Polymer Announces Whopping Profit Engro Polymer and Chemicals a subsidiary of Engro Corporation has announced a profit after tax of Rs 707 million for calendar year 2013 (CY13), up by a whopping 818% compared to just Rs 77 million in the previous year. Earnings per share (EPS) jumped to Rs 1.07 during CY13 against an EPS of Rs 0.12. On a quarterly basis, the company posted earnings of Rs 154 million or an EPS of Rs 0.23 during fourth quarter of CY13 (4Q CY13) compared with a loss of Rs 6 million posted during 4Q CY12. The potential increase in earnings was marred by a higher effective tax rate of 72% during 4Q CY13, Global Research reported. The company s revenues increased by 20% year-on-year (YoY) to Rs 24.78 million during CY13 because of around 10% rupee depreciation during the period. Moreover, the company also underwent a Polyvinyl Chloride (PVC) debottlenecking process, which allowed its annual capacity to increase by 6,000 tons. As a result, higher PVC off-take also contributed to the increase in the company s top-line. On a quarterly basis, company s revenues increased by 9% quarter-on-quarter (QoQ) to Rs 6.64 billion during 4Q CY13 because of around 4% rupee depreciation during the period and an increase in local caustic soda prices. The company s gross margins increased by 4.9 percentage points to 22.2% during 4Q CY13 because of a 12% YoY increase in PVC-Ethylene margins to dollar 350 metric tons during the period. On a quarterly basis, gross margins remained stable despite a decrease in its primary margins by 15% QoQ. The primary reason for stable margins was rupee depreciation and a likely increase in PVC off-take. Engro Polymer s financial costs declined by 52% QoQ to Rs 237 million during 4Q CY13 because of an absence of exchange losses during the period. During 3Q CY13, company experienced an exchange loss of Rs 200 million because of 6% rupee depreciation during the period. Source: Express Tribune
Director of BASF Pakistan (Private) Limited and Managing Director of BASF Chemicals & Polymers Pakistan (Private) Limited. He succeeds Qazi Sajid Ali, who retired effective March 31, 2014.
Prior to joining BASF, Faisal Akhtar has over 23 years of management experience with a large multinational organisation in the Chemicals sector. He managed high-profile executive roles in strategic business planning, decision-making and lead management. He is also a member of trade committees of forums which play an important role in advocacy of Pakistan s trade policy. He holds a postgraduate degree in Chemistry from the University of Karachi. PR
TDAP Being Brought Back on Track: S M Muneer Chief Executive Officer of the Trade Development Authority of Pakistan (TDAP) SM Muneer has said recent moves of the government have encouraged masses and the business community which has a very positive impact on the economy while long awaited serious reforms have been initiated to bring TDAP back on track to achieve export target of USD 50 billion, he said The CEO of TDAP SM Muneer said this while on a visit to Islamabad along with the President FPCCI Zakria Usman where he was greeted by a delegation of business community led by VP FPCCI Munawar Mughal. Former presidents of ICCI Zafar Bakhtawri, Abdul Rauf, former SVP ICCI Muzammil Sabri, Malik Sohail and others were also present on the occasion. Muneer said that the energy crisis and some other issues have been obstructing economic development and exports which would be settled soon as the government is serious about economy. Speaking on the occasion, President FPCCI Zakria Usman said that TDAP should focus on enhancing exports to China, the world s largest export market while promoting export-oriented industry and technical skills. The FPCCI Chief demanded enhanced presence of local entrepreneurs in international exhibitions, exchange of trade delegations, market research and cooperation by Pakistani missions abroad. PR
FPCCI Urges Saudi Investors to Focus on Energy, Processing Sectors The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has asked the investors from Kingdom of Saudi Arabia (KSA) to focus on Pakistan s promising processing sector. Pakistan s energy sector, especially Thar coal offers great opportunities and matchless returns, said acting President FPCCI Shaukat Ahmed, while speaking to a delegation of businessmen accompanying visiting Saudi
Crown Prince Salman Abdul Aziz Al-Saud. Our relations have grown steadily irrespective of governmental changes and we have reason to believe that our ties would follow a new trajectory , he added. Shaukat Ahmed informed that trade with KSA constitutes nine per cent of Pakistan s overseas trade while the brotherly country hosts about two million Pakistanis sending billions of dollars as remittances to reduce budget deficit. Lauding the KSA s assistance in two major hydel power projects he invited the Saudi investors to invest in different sectors including energy and processing industry. Despite leading producer of different food items, only 4 to 5 per cent milk, and a fraction of meat, dates and other items are processed, he informed adding that we need to collaborate in engineering, medical equipment, services, training sectors . Shaukat Ahmed said that bilateral trade has been increasing which hit $4.7 billion mark in 2013 with Pakistan s share at dismal 488 million dollars. Pakistan has been exporting textiles, rice, meat, fish, spices, food, vegetables etc, but trade remained heavily tilted towards the brotherly Muslim country, he said. He also drew attention of Saudi investors to the quality and price of local pharmaceutical, cement and other industries stressing on single country exhibitions and frequent exchange of delegations. All Pakistani sectors are open to foreign investment except specified industries; we ensure equal treatment to local and foreign investors; 100 per cent foreign equity and full remittance of capital, profit and dividends are allowed , he said. Speaking on the occasion, Chairman SaudiPakistani Business Council and Head of Delegation Ali Abdullah Ali Al Munajem said that they want to invest heavily in different sectors and facilitate Pakistani investors in KSA. Asking local businessmen to explore Saudi market, he said that Pakistani items are very popular in KSA. Joint Secretary Ministry of Commerce Fazal Abbas Maken, DG BoI Falak Sher and others said that Pakistan is gateway to China, Afghanistan and Central Asia, it offers around 37 per cent annual return on KSE and a 57 million labour force offers matchless opportunities. Source: Business Recorder.
PSQCA Organises Training Course Pakistan Standards and Quality Control Authority (PSQCA), under the Ministry of Science and Technology, as the National Standardization Body of Pakistan recently organized a technical training course on Good Standardization Practices. Pir Bakhsh Jamali, Director General, PSQCA in his closing remarks highlighted the importance of Good Standardization Practices and stressed the importance of international participation. Further, he said that standards developers, academia and Industry must work jointly to realize the economic benefits by following the International standards. Moreover, he asked to organize this kind of training course on regular basis particularly Polymer & Packaging | 05
energy management system and other market oriented topics. Earlier, Dr. Barkat Saeed Memon, Deputy Director General (Finance) in his opening remarks advised to all participants to actively involve in the training course. Khawja Gulam Mohiuddin, Deputy Director/ In charge, International Affairs and Training of PSQCA highlighted that this Authority has provided the platform at national level for the exchange of ideas and best practices among stakeholders and shows commitment towards sustainability on Good Standardization Practices in Pakistan. More than forty participants attended the training course. This training course is expected to ensure the implementation and use of international standards, active participation in standardization which directly impacts the growth of the national economy. PR
Denmark Focuses on Economic Ties with Pakistan: Envoy Jesper Moller Sorensen, ambassador of Denmark in Pakistan, said that Denmark is now giving much more focus to commercial activities and trade with Pakistan. Speaking at The Pakistan Institute of International Affairs (PIIA), he said Denmark s engagement in Pakistan has expanded considerably during the last years. He said most importantly, we are now giving much more focus to commercial activities and trade between two countries. We believe Pakistan should, in the long run, live by its own resources and the trade it does with its neighbours and other countries. That is also the reason why Denmark was a strong supporter of GSP+ for Pakistan , he said. Expanding economic ties is closely linked to Denmark s development goals, which is providing opportunities for every citizen to create economic growth and ultimately assist in poverty reduction . Speaking about Pakistan s role in the region, Ambassador Sorensen said he was very conscious that the people of Pakistan have been suffering more from terrorism than almost any other country. He said that Denmark considers Pakistan a key player in the fight against terrorism. We will never forget terrible losses in this country and we support Pakistan in fighting against terrorism . Source: Business Recorder
Netherlands Interested in Boosting Trade Ties with Pakistan The Netherlands has shown interest in improving trade relations with Pakistan, and the Dutch Vice Minister for Trade and Commerce is to visit Pakistan. Dutch Ambassador Marcel De Vink informed Finance Minister Ishaq Dar in Islamabad that the Netherlands desires to increase the volume of bilateral trade from $800 million to $1bn. With Pakistan supporting export-led growth, Netherlands wants to be its partner in the development process. De Vink informed that the Netherlands was arranging conferences to explore areas of cooperation with Pakistan in trade, and will hold workshops to guide Pakistani exporters. Source: Dawn
06 | Polymer & Packaging
German-Pakistan Chamber to be Set Up Soon: German Envoy Ambassador of Federal Republic of Germany to Pakistan, Dr Cyrill Nunn has said that his country was seriously considering setting up German-Pakistan Chamber in Pakistan in near future. Addressing the members of Sialkot Chamber of Commerce and Industry (SCCI), he said the prime objective of establishing GermanPakistan Chamber was to further enhance trade relations between the two friendly countries. Offices of German-Pakistan Business Council were already successfully functioning in Karachi and Lahore which were helping in strengthening the mutual trade and commerce ties between Germany and Pakistan, he said. President Sialkot Chamber of Commerce and Industry (SCCI) Dr Sarfraz Bashir said it was encouraging that Foreign ministers of two countries held regular bilateral policy consultations which help to improve the relations in the future. The volume of trade between the two countries was US $2.89 billion in 2012-13 while it was US $2.32 billion in 2011-12, he said. At this juncture the exchange of business delegations between the two countries on regular basis through the platform of chambers with the cooperation of German Embassy and Pakistan mission in Germany were direly needed, he added. Meanwhile, the Consul General of Germany, Dr. Tilo Klinner while speaking at a meeting of Korangi Association of Trade and Industry (KATI), has said that efforts should be made for the increase of trade between Pakistan and Germany and for that a delegation would visit Pakistan in this year consisting of the representatives of some 80 companies. He said a plan of joint Chamber of Pakistan and Germany is also being considered. He said that status of GSP Plus would play important role to further strengthening the business relations between Pakistan and Germany. Due to status of GSP Plus given by European countries to Pakistan, exports to European countries would be increased by 27%. President KATI, Syed Farukh Mazhar hoped that representation may be given to Trade Associations in Joint Chamber to be formed. Source: Business Recorder
ENGEL Appoints New Managing Directors in Scandinavia, Mexico ENGEL has appointed a new managing director for Sweden, Denmark and Norway. Jens Thor Hansen is an experienced plastics expert for these strategically important markets. Having previously been the managing director at a plastics-processing company specialising in clean room production, Jens Thor Hansen has gained extensive experience in this area over the last six years. All told, the 49-yearold plastics technology engineer has worked in management positions for medical technology and raw material companies for 25 years. "Medical technology is one of our important growth markets in Scandinavia, and we will benefit hugely from Mr Hansen's experience", remarks Dr Christoph Steger, CSO
ENGEL Holding GmbH, Austria. "In addition to this, our continued growth in Scandinavia depends to a great extent on providing efficient solutions for innovative applications. And this is precisely ENGEL's strength, as well as that of the Scandinavian industry." Ralf Godbey, the previous managing director of ENGEL in Scandinavia left the Group at the end of 2013. "We thank Mr Godbey for his great commitment in the past few years", says Christoph Steger. Meanwhile, Hector Moreno has become ENGEL de Mexico S.A. de C.V.'s new managing director, replacing Peter Auinger, who will be filling a new role within the ENGEL Group in Asia. Hector Moreno is a qualified engineer and has many years of sales experience in the plastics industry in Mexico. Before joining ENGEL he has been in charge of another European machine builder's Mexican sales for 18 years. Dr Peter Neumann, CEO of ENGEL Holding in Austria, remarks: "We're delighted to have found a very experienced expert for this strategically important market. Mr Moreno is equally passionate about sales and engineering, and we're sure that, together with his team, he will continue the success story of ENGEL in Mexico." PR
Pakistan is Safe for Investment Mukesh Kalra, head of a visiting delegation of Federation of Indian Micro and Small and Medium Enterprises (FIMSE) has said that Pakistan is a safe place to do business and a lucrative market as well. `There are no two opinions about it,` said Mukesh while addressing the members of the Lahore Chamber of Commerce and Industry (LCCI). Delayed issuance of visas to businessmen of the two countries was the biggest hurdle to boost bilateral trade volume, said Mr Kalra while expressing the optimism that PakIndia trade would get a quantum jump as soon as the trade ties turn normal. Stressing the need for joint ventures between the two sides, Mr Kalra said that the FIMSE in consultation with stakeholders was preparing a study to identify sector-specific impediments to bilateral trade. The study would be ready by March 31 this year and it would be furnished to the quarters concerned in the Indian government for appropriate measures in that direction, he said and added that the two governments should make concerted efforts to implement Ease of Doing Business Phenomenon, a key to attract foreign businesses. LCCI Senior Vice-President Mian Tariq Misbah was of the view that the frequency of visits made by Indian delegations to Pakistan in the last couple of years showed that Indian business community was keen to study Pakistan markets. Kashif Anwar, the vice-president of LCCI, said trade data of last three years showed that success in bringing any major increase in bilateral trade volume remained a dream during this period. `It indicates that either efforts to enhance bilateral trade are not enough to produce results or we need to innovate the existing ways of business deals,` he said. Source: Dawn
Exxon Begins World s 1st Crude-cracking Petrochemical Unit ExxonMobil officially launched the world s first chemical unit that processes crude oil in Singapore, aiming to lower costs to better compete with rivals in a market saddled with excess capacity. Chemical companies typically process refined oil products such as naphtha - created by separating crude oil into lighter groups - at facilities called crackers to create petrochemicals like ethylene and propylene. These are further processed into products such as plastics, soaps or synthetic fibres. But Exxon s new cracker in Singapore allows the company to bypass the refining process by processing crude directly into petrochemicals. This is the right place to do crude cracking because it gives us an advantage over the predominant feedstock in the region, said ExxonMobil Chemical s president Stephen Pryor. The cracker we ve built is by far the most feed flexible cracker we ve ever built. It can crack anything from light gases to heavy liquids, including crude oil. The new technology helps reduce raw material costs, energy consumption and carbon emissions, Pryor said, while the cracker also produces fuel components. He declined to detail the extent of Exxon s savings or specify which crude grades are processed at the cracker. Crackers in Asia typically use naphtha as a feedstock, while those in the Middle East enjoy a cost advantage as they process cheaper ethane and propane gases into petrochemicals. The multi-billion dollar complex on Singapore s Jurong Island includes the 1 million tonne per year (tpy) steam cracker as well as production of at least 1.4 million tpy of polymers and elastomers. The cracker was brought online in the middle of last year, but Exxon has not previously confirmed the use of crude as a feedstock. The project had been delayed for two years due to its complexity and a weak economic outlook which has pared the use of petrochemicals in automobile parts, electrical appliances and consumables, despite excess capacity. An improved economic outlook in the United States and better demand in China is expected to raise global chemical demand growth in coming years, according to the American Chemistry Council. The Council sees headline global petrochemicals growth of 4.1 percent in 2014 and 4.5 percent in 2015, up from 2.1 percent last year, said Thomas Kevin Swift, its chief economist and managing director. 08 | Polymer & Packaging
Polymer & Packaging | 09
Flexpac to serve needs of the industry: Ali Morani By: Ahmed Qaiser
Mr. Ali Morani, is the CEO of Continental Print & Pack (Pvt.) Limited, Karachi. He is a dynamic, ambitious and creative entrepreneur. Recently, an association has emerged in Flexible Packaging sector Flexpac and he is the founding Chairman of the association. Polymer & Packaging International has interviewed Mr. Morani for its readers.
Q: What were the circumstances which necessitated the formation of Flexpac? A: The flexible packaging sector in Pakistan at present manifests a situation where a large number of players do not have in depth knowledge of the business and its dynamics. People often enter this sector without doing any proper homework, market study and operate in a haphazard manner at times without the correct levels of investment. Due to this, it is common practice for people to set up new industries by mimicking what others are doing. According to market data that we have compiled, at times there is greater supply of a product as compared to its demand. This kind of situation compels those in business to secure orders at all costs and at times at uncompetitive rates. This at times forces manufacturers to compromise on quality of products which diminishes the image of not only their product but also the air of the business at large. Therefore, the need for a professional body was felt that could not only organize the sector but also protect the interests of existing players while providing useful guidelines to new entrants. It is the mandate of Flexpac to serve the best interests of all stakeholders including customers.
Q: How is surplus supply detrimental to the sector? A: If an industrial unit compromises on quality due to tough competition ordained because of surplus supply, it proportionately renders disservice to the society by providing low or sub standard products to consumers. If packaging is bad, it also reflects negatively on the product. If bad packaging material is put out for long enough, it will ultimately lower the image of not only the company producing bad quality material but also the entire industry at large. It is issues like these that we wish to highlight through Flexpac so as to educate all players about the danger of not conducting proper market study and ascertaining demand of a product before embarking on the business. The other thing about our industry is that although there are many players setting up new industrial units and some even developing new products, no one is trying to develop new markets. Instead, they are in a sense hijacking the market of other units. This approach is also posing problems for the industry and is negatively influencing the working environment. We believe that neither are players in the sector working towards creating new markets, nor are they exploring export potential for their products. Q: How do you propose Flexpac will address the issues faced by the sector? A: It is the mandate of Flexpac to educate entrepreneurs and spread awareness in related circles. We intend to evolve a system of data compilation which is essential for planning new business and expanding existing ones. Another issue faced by the packaging sector is the lack of academically and technically qualified work force. At present, the industry relies heavily on the gurus of industry who possess years of hands-on experience of operating machinery and supervising operations but lack formal education. Although the gurus are doing a good job but there are serious limitations to this approach. The reality is that technology is getting more and more cutting edge by the day and no matter how experienced the gurus of our industry are, lack of formal education often translates into lost opportunities. Although our formal education system does produce engineers specializing in polymer and other chemical sectors, the problem is these engineers end up seeking internships and employment in the
petrochemical and allied sectors rather than in the packaging sector. One of the main reasons why this is happening is because the potential of the packaging sector is not being highlighted enough. It is therefore the mandate of Flexpac to address this concern by spreading awareness about the potential of the packaging sector both in academic and job hunting circles. This we will do by conducting seminars, conferences and workshops to highlight the growth potential of the industry. We may also offer internships and permanent placement to budding professionals currently in university. It is through such initiatives that we hope to transform our industrial work force by attracting educated and refined talent. Q: You also mentioned the need for your industry to create new markets. Could you elaborate upon this? A: We believe that our industry has a lot of export potential. All the raw materials, films, inks and other material are produced locally while the technology is imported which is a onetime exercise. In effect, the complete supply chain is available to us. Although the sector is poised for going into exports but somehow the key players in the sector have not evaluated this potential. Under the Flexpac banner, not only do we wish to educate people but also convince them to concentrate on creating new markets and exploring export potential. Not only will this increase revenue generation but at the same time will help alleviate the surplus that we are producing. Moreover, exporting what we produce in excess will also generate precious foreign exchange for the country. Q: How did the industry take to the formation of Flexpac? A: Whenever a new association is formed, there are bound to be a handful of players who stand in opposition. Although the formation of an association often serves the best interest of the entire industry, there will always be a few who feel threatened by the development and fear it may be detrimental to their individual interest. For Flexpac, our experience has not been much different. However, the outlook of all our members remains positive. Flexpac wants all players out there to understand that we are not against any particular player or their business interest but wish to revamp the outlook of the entire sector in the best interest of all.
Global Industry Exhibitions GPCA 7-9 April 2014 | Sharjah, U.A.E.
Plastpol Expo 27-30 May 2014 | Kielce, Poland
InterPlas Thailand 19-22 June 2014 | Bangkok, Thailand
Plasti Vision Arabia 7-10 April 2014 | Sharjah, U.A.E.
Kenya Plast 02-04 June 2014 | Nairobi, Kenya
Plastics Fair 26-28 June 2014 | Ho Chi Minh City, Vietnam
Plastic Japan 16-18 April 2014| Tokyo, Japan
Suedtec 03-05 June 2014 | Stuttgart, Germany
Chinaplas 23-26 April 2014 | Shanghai, China
Argenplas 16-19 June 2014 | Buenos Aires, Argentina
Shanghai International Printing & Packaging Products Trading Fair 03-06 July 2014 | Shanghai, China
Ausplas 13-16 May 2014 | Sydney, Australia
FIP solution plastique 17-20 June 2014 | Lyon, France
Middle East Plastic Pipes 15-16 May 2014 | Dubai, UAE
Plastics Design & Moulding Exhibition & Conference 18-19 June 2014 | Telford, U.K.
10 | Polymer & Packaging
MSIA-PLAS 10-13 July 2014 | Kuala Lumpur, Malaysia PlastPack Sri Lanka 25-27 July 2014 | Colombo, Sri Lanka
Mr. Gerhard Schoone Regional Sales Manager WINDMÖLLER & HÖLSCHER KG Germany
Dr. Ettore Perego Sales Director Nordmeccanica Group Italy
WINDMÖLLER & HÖLSCHER KG has been in the business for more than 140 years and today we are one of the leading suppliers of machinery and systems for production and converting of flexible packaging.
Nordmeccanica is one of the largest company in the world producing state of the art Laminating Machines for almost any kind of application. We enjoy over 65 per cent share of the world s market for Laminating Machines.
We offer our customers a broad range of machinery and equipment in the field of extrusion, printing and conversion. As a company with global activities, we offer the customers everything from the single source - from the expert advice and engineering to the delivery of high quality machines and complete packaging production facilities. WINDMÖLLER & HÖLSCHER KG has been maintaining market leadership in the flexible packaging sector over many decades. Our equipment and systems are currently in operation in more than 130 countries and at more than 5,000 customer plants. Pakistan is a strong market. It is growing fast and we see good prospects for our products here. Many customers have shown their interest in our machines and I can add here that we have just sold our state of the art machines to M/S. KOMPASS PAKISTAN, one of the major converter in Karachi Pakistan and also to a new upcoming commercial producer of PE Film M/S. REHMPACK.
We have two factories in Italy, one in Latin America and one in Shanghai, China. The sales performance of Nordmeccanica can be gauged from the fact that one single factory in Shanghai sold about 80 laminating machines in just one year, 2013. The performance of Nordmeccanica is reflected in the fact that up to last year, we have sold more than 2000 machines all over the world. This confirms the statement that Nordmeccanica is the world s leader in laminating machines. Our list of satisfied customers in Pakistan is getting impressive by now. It is very easy to undertake the process of laminating but it is extremely difficult to do it with precision and at the required quality standards and Nordmeccanica is the right solution for difficult tasks.
We are working on many projects with our exclusive representative, K-Group of Companies. We are very happy working with K-Group. Together, we hope to achieve even more success in the current and in the coming years. Mr. Gerald Scharinger Director Business Development BSW Machinery Handels-GmbH Austria Mr. Mungkorn Kriengwatana President Quality Minerals Public Company Limited Thailand We are the manufacturer of Calcium Carbonate Powder, Calcium Masterbatch and Polyethylene Wax. Quality Minerals Public Company Limited was established in 1995 while in Pakistan we have been doing business for the last 9 years, and with our exclusive representative K-Group of Companies we are very successful so far. Most of our customers are WPP Bag producers, however, we hope that we can also diversify our business with Blow molding, blow film, Injection molding producers, PVC Cable and PVC Pipe manufacturers as well. We intend to develop more customers in Pakistan and we are optimistic that we can increase our sales in Pakistani market. Pakistani market is not an easy market and our representative, KGroup has got all the capabilities to cater the local market. They are professional people and we are satisfied with their performance and believe that they are performing quite well to promote our products in Pakistan. 14 | Polymer & Packaging
Our experience from interaction with Pakistani industry is very good. We have been working here with our exclusive representative, KGroup of Companies since 2010 and we are very successful together to cater WPP bags manufacturers in Pakistan. Our main products are PP Tape Extrusion Lines, Circular Looms, Printing Machines, Coating Machines and Conversion Machines for Raffia Bags and Cement Bags. We already have completed major projects in Pakistan and customers are taking keen interest in our products and therefore we already have many new enquiries for the next years. At the moment we are working on several projects for the local industry to be supplied in 2014. We have strong competition in the market here from Europe and Asia. However our machines are focused on high Quality, high Speed and high Output, as main advantages against our competitors. Local companies which are concentrating on exports as well, are more conscious about quality and they are convinced to purchase our products. As for future we see strong prospects for next two years and we are very optimistic in long-term.
Plasti&Pack The Ideal Platform to Access Pakistan s Plastic & Packaging Industry By: Ahmed Qaiser
Pakistan s plastic and packaging industry has been registering exceptional growth at a rate as high as 20 per cent per annum and the European and local experts believe it has the potential to witness even higher growth rate. Besides, Pakistan is the largest plastic and packaging market of South East Asia, second only to India. Per capita use of plastics is fast increasing, but still has got immense potential to rise further. According to data made available by State Bank of Pakistan and Federal Bureau of Statistics, the imports of plastic materials were recorded as USD 1130 million in the fiscal year 2008-09. And, in just fifth year the last fiscal year 2012-13 - these imports jumped to USD 1534.96 million, thus recording an increase of 35.80 per cent. The situation in imports of plastic and packaging machinery is almost the same. For those doing the business with or willing to explore new opportunities in Pakistan s fast growing market, Plasti&Pack Pakistan, for the past 11 years, has proven itself as the only ideal B2B exhibition platform which provides most convenient access to Pakistan plastic and packaging industry. 12th Edition of International Plastic Processing Packaging Exhibition Plasti&Pack Pakistan 2014 is set to open doors to wonderful new opportunities where potential buyers negotiate decisions for sourcing innovative plastic processing and packaging applications, as required by growing industries of plastics, packaging films, automotive parts and building materials. This year, Plasti&Pack Pakistan has attracted greater enthusiasm from exhibitors, as more than 250 Local and International Companies are expected to showcase their products, coming from Austria, Belgium, China, Germany, Greece, Hong Kong, Italy, Japan, Pakistan, Saudi Arabia, Turkey, UAE, UK and USA. Great potential for exhibitors and visitors is already there as many pavilions have been booked in advance. They include an exclusive pavilion booked by PEIAC - Printing and Printing Equipment Industries Association of China; an exclusive pavilion booked by Flexpac the Association of Flexible Packaging Converters of Pakistan; and an exclusive pavilion booked by CMEC International Exhibition Co. Ltd, China. Moreover, top converting companies and world s top printing and converting machinery and equipment manufacturers and suppliers have also booked their space and are ready to make impressive appearance. As a result, a wonderful variety and vast range of technology is going to be displayed at Plasti&Pack Pakistan 2014, Lahore. These technologies include Petrochemicals and Raw Materials, Masterbatches, Injection, Blow and Compression Molding Machines, Extrusion Line, Molds, Gravure, Flexo and Offset Printing and Converting Machinery and
Equipment, Pre Press and Post Press Equipment, Packaging Films, Bag Making Machines, Packing Machines and Materials, Inks and Consumables, Lab Equipment, and the rest, all under one roof! Importance granted to Plasti&Pack Pakistan 2014 by the related circles is confirmed by the fact that it is fully supported by Board of Investment, (BOI) Pakistan, Engineering Development Board, (EDB) Pakistan, Pakistan Council of Scientific & Industrial Research, (PCSIR), Flexible Packaging Association of Converters of Pakistan, (FLEXPAC), Printing & Printing Equipment Industries Association of China, (PEIAC) and CMEC International Exhibition Co. Ltd, China. IFTECH food + bev tec Pakistan 2014; The 11th Edition of International Trade Fair of Food Processing and Packaging Industry is scheduled to take place from 4 to 6 September at Expo Center Lahore. IFTECH Pakistan is an ideal platform for industry professionals and brand owners where they can exchange business proposals and experiment with ideas to gauge the shift in consumer preferences towards technologically advanced yet intelligently convenient solutions. Food + Hospitality Pakistan is an integral part of IFTECH food + bev tec, which completes the total outlook of Food & Beverage Industry at the exhibition floor starting from process and packaging to the preparation, presentation and serving the delightfully delicious food in the most desirable atmosphere. Food + Hospitality Pakistan will host exhibitors with kitchen and bakery equipment, foodservice, catering, hospitality and guest facilitation and information systems, flavors, fragrances, ingredients and chemicals etc.
Print Paper & Label The Exciting Addition PRINT PAPER & LABLEL: This new and exciting addition to the show will greatly leverage Pakistan s Plastic and Paper, Printing, Converting and Graphic Art Industry and its sub sectors including printing for FMCG packaging, newspapers, books and magazines printing, publishing, digital & desktop publishing and display production. PRINT PAPER & LABLEL exhibitors will gain benefit of an unprecedented reach to a wide variety of buyers and visitors belonging to Plastic Packaging, Food & Beverage industries. It is the ideal platform to market key solutions ranging from day to day printing needs to specialized printing for all kinds of substrates, which could add comprehensive face value to a range of non food and food items. Print Paper & Label will be the most preferred meeting place for the converting and flexible packaging industry, the show is supported by a strong mandate of local and international industry stakeholders; Printing and Printing Equipment Industries Association of China (PEIAC) and Flexible Packaging Association of Converters of Pakistan (FLEXPAC). 16 | Polymer & Packaging
Optimum use of tie-bar-less benefits for 2-component packaging part
Twice as Fast as the Competitor En route to even shorter cycle times in the production of coffee capsules for espresso machines, the tie-bar-less design of the ENGEL victory injection moulding machine inspired O.C.S.A. to create a totally new cooling concept. This not only secured the mould maker and injection moulding specialist from Northern Italy the ENGEL HL-Award 2012 in Silver, but also follow-up orders from its customer illycafè. "The coffee capsules are not just packaging, but an important functional element of the espresso machine", emphasises Marco Milan, General Manager of O.C.S.A. in Creazzo near Vicenza. The company produces 150 million coffee capsules per year, each comprising four individual parts, which are assembled at illycafè immediately before filling the coffee powder: the coffee holder, the baseplate, the filter disc and the lid, which is later automatically penetrated in the espresso machine to scald the coffee. "You need a high brewing pressure to release the full aroma , Milan continues. This is why the illycafè espresso machines force the hot water through the capsule at a pressure of 16 bar. The requirements on the plastic parts are correspondingly high, both in terms of the materials used, and their precision and fit. The biggest challenge in manufacturing the capsules is, however, that of continuing to increase production efficiency. In the packaging field, it is all about volume and achieving it at low unit prices. To remain competitive as order volumes rise, O.C.S.A. launched an inhouse project in 2010 with the objective of reducing the cycle time in the manufacturing of the largest of the four components, the coffee holder.
Automotive efficiency as role model The creative mould concept, combined with the plastics processor's economic success that quickly followed suit, convinced the jury of the HL Award 2012. In the scope of the ENGEL Symposium in Austria in June 2012, Marco Milan accepted the award, accompanied by his sister, Sabrina Milan. The siblings dedicated the award to their father, who passed away this January. For O.C.S.A., his legacy means a contribution towards safeguarding the future; after all, it took a high degree of manufacturing efficiency to substantially expand business in the packaging division. "Two years ago, 89 percent of our customers came from the automotive industry", says Marco Milan. "Now we have reached 66 percent and that makes us far more resilient to crises." Of course, decades of experience with customers from the automotive industry provide an optimum basis for success in the packaging industry. "The pressure to be efficient is far greater in the automotive sector", Milan reports. "The automotive industry has always been technologydriven to a great degree; multiple component applications have been standard here for a long time, while they are just slowly becoming more important in packaging right now." Large moulds on small machines ENGEL's tie-bar-less technology leverages its benefits to the full in multiple component technology in particular. Moulds are usually relatively large, whereas clamping forces are comparatively low on account of the comparatively small projected part surfaces. Since the clamping unit in the ENGEL victory machines operates without tiebars, the mould can project beyond the edges of the mould fixing platens. This means that large moulds fit on relatively small machines. "Without tie-bar-less technology we would need to invest in larger injection moulding machines for our multiple component applications", says Milan, "although we try to keep the machine footprints as small as possible. Each square metre of floor space in production is valuable." The victory machines' solid frames and the 3-point platen guidance system with precision guides on both sides and a central clamping cylinder achieve excellent platen parallelism despite the tie-bar-less design. The stationary platen's extremely stable mounting to the frame ensures that it does not stray out of its vertical position even for fast movements; this is gentle on the mould and extends the maintenance intervals.
Pipes instead of hoses for greater cooling water volumes. The coffee powder containers are two-component parts. The body of crystal clear polypropylene is provided with a membrane and a seal of TPE on the underside. The membrane is perforated to allow the scalded coffee to enter the cup. The containers are produced on an ENGEL victory 1350H/200W/220 combi injection moulding machine in a 32+32x rotary plate mould. First, the polypropylene is processed in the lower mould position, and then the TPE is injected on top after rotating the mould. The finished containers are ejected during the mould's opening movement. "The only key to further cycle time reductions was cooling the PP components", says Milan. "For packaging parts in general, there is a need for fast cooling. Based on our experience, the cooling water volume is more important here than its temperature." Initially, wider cooling water hoses were mounted. "We immediately noticed a positive effect", Marco Milan reports, "however, the hoses turned out not to be tough enough for the fast rotary platen movements." Finally, it was company founder, Tarcisio Milan, Marco's father who commissioned in-house mould making with creating fixed pipes to the cooling water supply totally decoupled from traditional concepts of mould and cooling. "The barrier-free clamping unit on the tie-bar-less victory machines and the huge amount of free space this creates gave my father this ingenious idea", Marco Milan says. "Today, we achieve extremely short cycle times of 9.2 seconds with this design, and thus produce twice as quickly as our competitor. This put us in a position to substantially improve our supplier rating at illycafè, so that we have now already been commissioned with further projects. In March 2011, the first mould with the new cooling concept went into serial production. Now, two identical moulds are working on two victory machines in a parallel layout. The water pipes that are directly connected to the cooling unit jut out upward through the clamping unit. Because there are no tie-bars in the way, the pipes can easily follow the motion of the rotary plate. 18 | Polymer & Packaging
Tie-bar-less machines also offer benefits in terms of automation. Because robots and automation equipment have free access to the mould area, parts can be removed faster, thus reducing the overall cycle time. Although not in coffee capsule production, this aspect is important in other O.C.S.A. applications. "The level of automation is increasing", Marco Milan emphasises. "To secure contracts in Europe, we need to work with the best technologies available on the market. The key factors here are automation and a high level of process stability." Award-winning tie-bar-less applications 2012 ENGEL HL Awards 2012 The HL Awards are ENGEL's acknowledgement of excellent applications with ENGEL tiebar-less injection moulding machines. 25 contributions from 15 countries made the independent jury's job very difficult this year; they thus strictly scrutinised the deployed technologies, the progressiveness of the applications, and the economic benefits compared with legacy machines. Besides O.C.S.A. (HL Award in Silver) the award winners were Volkswagen in Wolfsburg/Germany (Gold), Anton in Zalaegerszeg/Hungary (Bronze), Schneegans in Emmerich/Germany (4th place), Doctor Zeta in Moscow/Russia (5th place) and Okartek in Kaarina/Finland along with Fiskars in Billnäs/Finland (6th place).
CHINAPLAS 2014 to Drive the Evolution of Sustainability Many enterprises have well-recognized the importance of building a sustainable future through resources management, recycling and energy saving. With its durable, lightweight and versatile features, plastic products make a significant contribution to the global sustainability. Lightweight vehicles reduce fossil fuel energy consumption and reduce carbon emissions, whereas innovative plastic
sustainability concept in four aspects, namely Green and Alternative Raw Materials, Energyefficient Machinery, Plastics and Rubber Applications, and Recycling. Visitors can explore the latest green messages and trends from manufacturing till the end of the life of the products through interactive displays and game booths in a fun and relaxing manner. Green Conference, another remarkable event
format, has invited international brand names and global market leaders across various sectors to share their experiences and insights, making it an unmissable event in CHINAPLAS 2014. For more details on the concurrent events, please visit: www.ChinaplasOnline.com/Event CHINAPLAS 2014, Asia s no. 1 and world s no. 2 plastics and rubber trade fair, will gather more than 2,900 exhibitors, occupying an exhibition area of over 220,000 sqm, with 14 international pavilions and more than 3,200 sets of machineries. For more information about CHINAPLAS 2014, please visit the official website at www.ChinaplasOnline.com. For media enquiry, please contact: Ms. Helen Chan Marketing Communications Department Adsale Exhibition Services Ltd. Tel: +852 2516 3395 Email: publicity@adsale.com.hk
About CHINAPLAS 2014 CHINAPLAS 2014 is organized by Adsale Exhibition Services Ltd., and co-organized by the China National Light Industry Council China Plastics Processing Industry Association, China Plastics Machinery Industry Association, Messe Düsseldorf China Ltd., The Plastic Trade Association of Shanghai and Beijing Yazhan Exhibition Services Ltd. The event is also supported by various plastics and rubber associations in China and abroad. The conference will provide a unique platform to put together international professionals and decision makers to exchange ideas and contribute to green evolution of the industries.
packaging protects food in shipment and keeps it fresher and longer. High-tech plastic insulation reduces energy consumption in buildings. Energy and resources efficiencies have drawn plastics and rubber practitioner s attention as it becomes ever more pressing issues for many enterprises to stay competitive in the world with scarcity of resources. Green technologies and industrial processes have become the promising ways leading the world to a more sustainable future. Echoing the increasing demand for more sustainable business practices, CHINAPLAS 2014, to be held at Shanghai New International Expo Centre, PR China from April 23 26, 2014, will promote sustainability under the theme of Greenovation Solution to Sustainability , with The City of Tomorrow and Green Conference as two featured events. The City of Tomorrow will feature a circular shape structure at Central Square of the exhibition centre to showcase a comprehensive sustainability model which covers the 20 | Polymer & Packaging
of CHINAPLAS 2014, is a 2-day conference cohosted by Adsale Exhibition Services Ltd, Plastics Information Europe (PIE) and Association of Green Molding Solutions (AGMS). It will be held on the second and third day of the event (April 24-25), covering the sessions of Innovative Solutions for Plastic Recycling and Green Molding to Halve the Cost and Double the Wealth respectively. The conference will highlight a range of forward thinking topics such as green molding, 3D printing, plastics recycling as well as various solutions for end-of-life plastic wastes, etc. The Organizer expected that the conference will attract experts and decision makers in plastics and rubber industries from manufacturers, converters, end users, institutes, machinery suppliers and media to grasp the latest developments of green technologies, inventions and practices from manufacturing methods, to waste management and renewable resources in the plastics and rubber industries. The conference, presented in technical presentations and case sharing
Plastics and rubber have been widely used in automotive industry to reduce weight, increase strength and enhance fuel and energy efficiencies.
First introduced in 1983, CHINAPLAS is China's only plastics and rubber trade show approved by UFI (The Global Association of the Exhibition Industry). CHINAPLAS has been exclusively sponsored by the Europe's Association for Plastics and Rubber Machinery Manufacturers (EUROMAP) in China for the 25th time. CHINAPLAS is currently Asia's No.1 and world's No.2 plastics and rubber trade fair.