Editor s Note
With this issue we celebrate one year of Polymer & Packaging International. The overwhelming response we have received during the course of this year from local industry and from international quarters has energized the whole team to reach even higher milestones in 2014. We have received testimonials from industry giants such as Pak Petrochemicals and Clariant who acknowledged the fact that Polymer & Packaging International has emerged as a reputable magazine of international standards! We began this journey with the aim of being the catalyst of positive change today as Polymer and Packaging has gained recognition as the face of the country s Plastics and Packaging industry, we are thankful to those who believed in us, supported us and guided us. In its aftermath, 2013 leaves behind some strategically important developments on the globe, the most important of which is the historic interim agreement between Iran and USA and other world powers. This agreement carries unprecedented potential to change the political as well as economic scenario of the world in general and the region in particular. For real value benefits to the Pakistan Plastic Industry, much remains to be seen and in the following issues we will be following developments and opportunities closely. Another development that has the potential to significantly impact the local industry is the matter of smuggling across the Iranian border. With the option of legal trade with Iran now a real possibility, it remains to be seen how the industry will work this out with the government. On the global trade-show front, there have been some important events such as the Plasti&Pack in Lahore and K-2013 in Germany. With Sri Lanka now joining the list of hosts with PlastPack in 2014 which is believed to have the potential to enhance the trade volume between Pakistan and Sri Lanka, Polymer and Packaging International is proud to be the media partner for this maiden venture. Furthermore, we are also privileged to be media partners of PlastiVision Arabia 2014 in Sharjah as well as well as GPCA plastic conversion conference 2014 which is being organized in conjunction with this event. For us at Polymer and Packaging International it has been an engaging year, and as we move into our second year, the energy that drives our spirit becomes even more pronounced. Our endeavor, as always, is to bring you the latest analyses, developments, business to business opportunities and technical advancement studies as soon as they transpire. With your patronage, we have achieved much for a recent entrant with your continued support and guidance we can grow into the business partner we promised at the outset. In view of these developments it is realistic to believe that 2014 can prove to be a better and more productive year for the industry and those who have planned cautiously will grab more opportunities leading to greater business volumes.
Content Editor s Note
05
The Bare Essentials Representation of Pakistan s Imports of Plastic, Printing, Packaging Machinery & Materials (July 2012 June 2013)
06
NEWS
08
Plasti&Pack Post Show Report
12
Interview with Commercial Director of Nordmeccanica Spa, Italy, Mr. Renzo Bogani
14
Article: Injection Moulding Trends in Pakistan
16
High Expectations Exceeded at K 2013
20
GPCA: Creating Value Across GCC Plastics Industry
22
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
Agent in Malaysia: Al-Shams Global Sources Sdn Bhd, Suite 33, 33rd floor Menera Keck Seng, 203 Jalan Bukit Bintang, Kuala Lumpur 55100 Tel 603 21163444, Fax 603 21164445
Printed at: Quick Process Plot No: 20, Sector 24, Korangi Industrial Area, Karachi.
The Bare Essentials:
Graphical Representation of Pakistan s Imports of Plastic, Printing, Packaging Machinery & Materials (July 2012 June 2013) IMPORT OF PRINTING MACHINERY JULY 2012 - JUNE 2013 HS # 84431200 USD 790259.3 (5%) HS # 84431600 USD 4416265.6 (27%)
56.19
HS # 84431300 USD 5910798.8 (37%)
23.30
6.63
HS # 84431700 USD 3894533.2 (24%)
HS # 84431100 USD 1062832 (7%)
06 | Polymer & Packaging
GERMANY
SWEDEN
CHINA
Major Countries of Import (%)
3.11 U.S.A
IMPORT OF PLASTIC MATERIAL JULY 2012 - JUNE 2013 HS # 39011000 USD 221181535.3 (3%) HS # 39023000 USD 95466016.6 (13%)
40.67 HS # 39072000 USD 86776639 (11%)
11.73
9.14
6.16
HS # 39012000 USD 196856898.3 (26%) SAUDI ARABIA
HS # 39021000 USD 351841027 (47%)
INDIA
QATAR
U.A.E
Major Countries of Import (%)
IMPORT OF PLASTIC & RUBBER MACHINERY JULY 2012 - JUNE 2013 HS # 84773090 USD 6590829.9 (15%)
44.73 HS # 84771000 USD 18212987.6 (40%)
HS # 84772000 USD 6388838.2 (14%) 12
11.43 6
HS # 84807100 USD 3732385.9 (8%) CHINA
JAPAN
TAIWAN PROC
E.U
Major Countries of Import (%)
HS # 84807900 USD 10284388 (23%)
IMPORT OF PACKAGING MACHINERY JULY 2012 - JUNE 2013 HS # 84224000 USD 18801825.7 (26%)
HS # 84223000 USD 39792157.7 (55%)
22.71
ITALY
20.12
GERMANY
14.20
14.09
E.U
CHINA
Major Countries of Import (%)
HS # 84229090 USD 14091690.9 (19%)
IMPORT OF PAPER & PAPER BOARD MACHINERY JULY 2012 - JUNE 2013 HS # 84411000 USD 1889429.5 (10%) HS # 84392000 USD 13105892.1 (69%)
51.13
HS # 84399900 USD 2584004.1 (13%)
16.85
HS # 84419090 USD 1519356.8 (8%)
13.10 4.78
GERMANY
U.K
CHINA
SWEDEN
Major Countries of Import (%) Polymer & Packaging | 07
NEWS
Duty raised on BOPET films In an effort to protect the local industry, the Federal Board of Revenue (FBR) has proposed an increase in customs duty on import of Bopet films, which are used by the packaging industry. The proposal was recently floated during a meeting of the Economic Coordination Committee (ECC) of the cabinet. The FBR informed the ECC that Novatex Limited and Astro Plastics (Private) Limited have made presentations, showing Bopet films classified under HS codes 3920.6200 and 3920.6900 were being produced by them locally as an import substitute. With the setting up of two plants of Bopet films since July 2012, its local production was reported to be around 49,000 tons against total demand for 16,000 to 18,000 tons. Representatives of the firms pleaded that the concession in import duty on Bopet films should be withdrawn as it was granted when the films were not being produced in the country. Now the concession is hurting the interest of the local manufacturing industry, they said. Contrary to this, the importers of Bopet films were of the opinion that withdrawal of the duty relief would create a monopolistic environment. They stressed that some varieties of the film have a particular thickness, which were not being produced locally and for which a separate PCT classification would have to be created. It was, however, argued that this assertion was not justifiable as the present classification of the film was not based on thickness. The FBR believed that instead of withdrawing the full duty concession on import of Bopet films, the existing concession should be reduced gradually. The revenue board proposed that the duty classified under HS code 3920.6900 be increased to 15% from the existing 10%. The Ministry of Commerce supported the proposal except for enhancement of customs duty on Bopet film used in the manufacture of scratch or magnetic strip. The ministry suggested that the proposed duty should be reviewed in June 2014. The National Tariff Commission may conduct a detailed study by that time and recommend appropriate customs duty considering the protection and competitiveness of the local industries. The ECC was informed that on the recommendations of the Engineering Development Board (EDB) all kinds of Bopet films transparent, chemical-coated and metalised having thickness of various microns falling under PCT headings 3920.6200 and 3920.6900 have been included in the list of locally manufactured goods. The ECC noted that the present duty structure for Bopet films has been in place since 2006. Moreover, it should be ensured that the proposed increase in customs duty on import of films is in the interest of the local industry and does not discourage foreign investment. At the end of the meeting, the ECC decided to constitute a committee to carry out a comprehensive study. Source: Business Recorder
New customs values fixed for disposable plastic articles Directorate General of Customs Valuation Karachi has issued new customs values on the import of disposable plastic boxes, cases, containers, 08 | Polymer & Packaging
bowls, poly propylene jelly cups and similar articles including plastic disposable household articles for accurate assessment of duty. It is learnt that the directorate has issued a new customs valuation ruling in exercise of the powers conferred under section 25-A of the Customs Act, 1969. The customs value has been fixed at $2.35 per kg on the import of above mentioned items. If these items are imported in printed form, $ 0.1/kg shall be added to the Customs value (C&F) determined. Details of the issue revealed that upon receipt of a reference from Model Customs Collectorate Appraisement (East), Karachi, vide letter No.MCC/Misc/249/2013-R&D, dated 05-08-2013,
an exercise to determine the Customs values of disposable plastic articles including PP Jelly Cups, was undertaken under section 25-A of the Customs Act, 1969. The valuation methods given in Section 25A of the Customs Act, 1969 were followed. Transaction value method provided in Sub-Section (1) of Section 25 ibid was found inapplicable because the requisite information was not available. Identical/similar goods value methods provided in Sub-Section (5) & (6) of Section 25 ibid were also not found applicable due to unreliable and variable values. Market enquiry in terms of Sub Section (7) of Section 25 was conducted. The cost of raw material was also taken into consideration. Consequently, Sub-Section (7)
92,000 tonnes hazardous plastic scrap dumped in Pakistan Pakistan has imported over 22,149 metric tonnes of potentially hazardous plastic scrap, as the country is a big dumping ground for plastic scrap. The import made during January to October 2013 and from 2011 till date is over 92,000 tonnes of plastic scrap, most of which is from Middle Eastern and European countries. Pakistan s import policy restricts import of hospital waste of all kind, used sewerage pipes and used chemical containers, but still all kinds of potentially hazardous waste is imported and released regularly from different dry ports of Lahore. The import policy allows import of plastic scrap to industrial consumers only subject to the conditions that the importer has appropriate manufacturing facility and has been assigned an import quota from concerned federal or provincial environmental protection agency as well as inspection from technically qualified designated preshipment inspection companies (notified by the federal government) to ensure shipments are in compliance with the Basel Convention. Since we do not have any regulation in this country, even countries like UK, which is a signatory of Ban Amendment of Basel Convention and cannot export hazardous product to developing countries, is continuously dumping its scrap in Pakistan. The country has imported around 2,200 metric tonnes of plastic scrap in October 2013 out of which 34 percent was brought from UK alone. Sources said Lahore s dry ports have become the hub of releasing all kinds of potentially hazardous plastic scrap into the country, which was subsequently used by plastic goods manufacturing companies to produce plastic consumer products. The plastic scrap import data of October revealed that 45 percent of scrap imported in October was from EU countries including UK, Italy, Belgium, Holland etc which have ratified Ban Amendment and as per Basel Convention cannot export hazardous product to developing countries such as Pakistan which neither has proper recycling facilities nor strict government mechanism to control the menace of hazardous plastic scrap. Sources said the reason for release of hazardous waste was clearance based on visual inspection by one of the big pre-shipment inspection companies of Pakistan, which only checks gama radiations to identify if the product is hazardous or not. Most of the scrap imported in Pakistan is used in manufacturing of pressure pipes which is not allowed as per Pakistan Standard 3051/1991 and other international standards such as British Standard 3505/1985, ASTM D-1785-06 and ISO-4422-1:1996. This use of scrap in pipe not only possesses potential health hazard but is also damaging local plastic industry by pushing substandard product in the market. An importer and manufacturer of household plastic goods said definition of manufacturer should be elaborated and include manufacturer of plastic finished product using scrap to produce product as per designated Pakistani and international standards. Sources demanded the government to take up this issue with European countries which are Ban Amendment signatory hence it was illegal, unethical and against the Basel Convention spirit that developed countries like UK, Italy, Belgium and Holland that do not have adequate recycling facilities to process all of its plastic scrap, are dumping their scrap in country like Pakistan which neither has proper recycling facilities nor the strict implementation of rules and law hence posing serious environmental and health threats to millions of Pakistanis. Plastic scrap should strictly be handled by manufacturers having proper recycling facility including adequate water treatment facility and waste treatment facility and all employees should be equipped with personal safety equipment to avoid direct contact with hazardous material. Source: Daily Times
Section 25 of the Customs Act, 1969 read with Sub-Section (9) of Section 25 ibid was adopted to determine Custom values for Disposable Plastic articles including PP Jelly Cups. Stakeholders participation in determination of Customs values: Meetings were held on 24-092013 and 09-10-2013 with stakeholders including the importers and local manufacturers, representative of FPCCI to discuss the current international values of Disposable Plastic Articles including PP Jelly Cups. The disposable Plastic Articles including PP Jelly Cups of all origins shall be assessed to duty/ taxes at the specified customs values. In cases where declared values are higher than the Customs value determined in this ruling, the assessing officer shall apply those values in terms of Sub-Section (1) of section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the differential between airfreight and sea freight while applying the Customs values determined in the ruling. The values determined vide the ruling shall be the applicable Customs values for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub Sections (1) or (3) of Section 25 of the Customs Act, 1969, sources added. Source: Business Recorder
Food bags that can stop bread from going mouldy developed The new bag may allow bread and cheese to be kept for longer to prevent mould and bacteria from growing
Denmark keen to expand commercial ties with Pakistan Plastic bags that can stop bread and cheese from going mouldy after just a Danish Ambassador Jesper Sorensen has said that his country is keen to expand commercial and trade ties with Pakistan. In an exclusive interview with Radio Pakistan, he said the Commercial Section of the Embassy in Islamabad would facilitate trade between the two countries. The Ambassador mentioned his plans of going back to Denmark to meet different companies there to apprise them of business and investment opportunities in Pakistan. In this connection, a seminar would also be held to update them on the latest economic developments and policies of the Pakistani government. The Ambassador also said that Denmark is providing economic assistance to Pakistan and is also supporting through a stabilization programme. He said the second development programme for the next three and a half years involved activities worth 50 million dollars especially in the fields of education and health. Source: Business Recorder
few days have been developed by scientists. The technology, which uses chemicals that prevent bacteria and fungi from growing, allows food to last for longer, according to Symphony Environmental. It could mean an end to throwing away supermarket bread after just a couple of days in the bread bin and cheese that remains mould free for weeks. Pharmaceutical company Janssen have spent two years developing the technology with plastics manufacturer Symphony Environmental. They are now in discussions with several food manufacturers and supermarkets to use the bags on their products. Tests have shown that the plastic can increase the shelf-life of bread and cheese without contaminating the food. Michael Stephen, director of Symphony Environmental, said the plastic also had the potential to do the same for fruit, vegetables and even meat. He said: We have come up with a way of making plastic that is antimicrobial and can be used in food wrapping. We ve done a lot of tests on food packaging and it has been shown to reduce the mould that grows on both bread and cheese. In Britain around 15 million tonnes of food is thrown away each year, much of it because it has spoiled or gone mouldy.
Iran, US to open joint chamber Bread is among the most wasted food, with households throwing away an of commerce: report Iran and the United States are to establish a joint chamber of commerce within a month, with direct flights also planned, an Iranian official said in a newspaper report. Iran-US chamber of commerce will be launched in less than one month, Abolfazl Hejazi, a member of Iran s Chamber of Commerce, Industries, Mines and Agriculture, told the Englishlanguage Iran Daily. In the wake of a historic accord between Tehran and major powers on Iran s controversial nuclear programme, Hejazi also said his country was ready to start direct flights to the United States. According to Hejazi, the project which he said had already been registered in the United States would allow the two countries to work towards restoring ties. Hejazi also said the government has authorised the private sector to launch joint activities and
estimated 4.4 million tonnes a year about a third of all the bread purchased by UK households.
The technology developed by Janssen and Symphony, which they have called D2P, fixes antibacterial and antifungal chemicals into the plastic. They have found it can control bacteria such as E. coli, Salmonella, Listeria, which can cause food poisoning. It can also control the growth of fungus that grow on breads and others such as Mucor piriformis, which causes soft fruits to rot, and Penicillium roqueforti, which is found on cheese. Mr Stephen added: Initially we anticipate it being used in pipes, door handles and hand rails on the tube, for example, to help reduce the spread of bacteria. It can also be put into man-made fibres so we are running some trials putting it into clothes and trainers to stop the bacteria that can cause them to smell. Courtesy: Sunday Telegraph, U.K. Polymer & Packaging | 09
that Iran was ready to establish direct flights to the United States. Flights would connect Kish Island in southwest Iran with New York, he said. This is because Kish Island is a free trade zone and Iranian passengers who have US citizenship will not need to obtain visas to enter it, he said. Hejazi said direct flights would enable us to export domestic products to the US and import high-tech products and raw materials from the country. Source: Business Recorder
KCCI nominates Makda for WCF body polls The Karachi Chamber of Commerce and Industry (KCCI) has nominated Junaid Esmail Makda as its representative in the World Chambers Federation (WCF) General Council 2014-16 election. International Chambers of Commerce-Pakistan (ICC-Pakistan) represents the International Chamber of Commerce that includes WCF, which is ICCs worldwide network of chambers of commerce. ICC national committees work with their members such as the KCCI to facilitate and address their concerns both nationally and internationally. To enhance international interaction, that KCCIs affiliation with ICCs world chambers federation, had resulted in its former President, Abdul Majeed Haji Mohammad, election to the WCF general council 2010-2013. Talking to Business Recorder, Junaid Esmail Makda thanked KCCI for sending his nomination as its representative in WCF General Council 2014-16 He said that KCCI is the first chamber of Pakistan which was affiliated with the ICC and WCF. It is also a distinction that KCCI holds representation in the General Council of WCF. He said that the new government has committed to restore peace and resolve energy crisis to attract the local and foreign investments. Source: Business Recorder
Zikarya elected president FPCCI unopposed Zikarya Usman, of Businessmen Panel, has been elected unopposed as president, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for the year 2014. According to Shahzad Aalam, election commissioner FPCCI election, Dec 9, 2013 was the last date for the submission of nomination papers for the slot of president, senior vice president and 10 vice presidents. However, only one nomination of Zikarya Usman was received for the post of president, hence he has been declared president FPCCI for the year 2014. Following the directives of the DTO for the first time in the history of FPCCI a new post of senior vice president has been created and Shaukat Ahmed nominated by All Pakistan Textile Mills Association (APTMA) has also been elected unopposed for the post of senior vice president. Shaukat is a former president of KCCI. Shakeel Ahmed Mukhtar of Sukhar Chamber of Commerce and Industry, Sheikh Imtiaz Ahmed from Jehlam Chamber of Commerce and Industry, Munawar Mughal of Islamabad Chamber of Commerce and Industry and Adnan Jalil of Khyber Pakhtunkhwa have also been elected unopposed vice presidents FPPCCI. According to election commissioner Khurram Saeed of Pakistan Tyre Association, S. M. Naseer of Pakistan Tanners Association, Mian Mehmood Ahmed of Pakistan Cotton Ginners Association and Mazhar A. Nasir of Pakistan Cotton and Fashion Apparel Association are also elected unopposed for the slot of vice presidents. There is more than one nomination for vice president seats of Balochistan and special seat for women, therefore, the polling is likely to be held for these seats. Source: Business Recorder
ENGEL Korea wins National Quality Award Engel Machinery Korea has won South Korea s National Quality Award. The award was given in the field of production innovation. The Korea National Quality Award is one of Korea's most prestigious business awards and one of the most
important quality distinctions in the world. Furthermore, ENGEL is the first foreign company ever receiving this award in the 39 years of its history. The award was handed over by the Korean Prime Minister Jung Hong-Won and the winners have been honored by the Korean President Park Geun-Hye. PR
Successful start of Liquid Masterbatches Plant in Karachi Clariant, a world leader in specialty chemicals, successfully started the first production of liquid and paste masterbatches in its new manufacturing line in their Korangi Karachi site in Pakistan on 11th October 2013. The new production facility is not only to support the customer needs in Pakistan but also customers in Clariant s IMEA region which, besides Pakistan, includes India, Middle East and Africa. Clariant was the first masterbatches manufacturer in Pakistan who started up their production of pellet masterbatches in 1993. Again, Clariant pioneers in Pakistan as the first domestic manufacturer of liquid and paste masterbatches for PET and PVC applications. Clariant's liquid masterbatches carrier technologies, together with liquid masterbatches dosing - and handling systems, provide the flexible way to advance plastics. This new liquid manufacturing line is a further milestone in our customer focused market approach in IMEA region. The customers response on our localization of Clariant s global manufacturing technologies and products into Pakistan are very positive commented Gregor Keil, Head of Marketing & Key Account Management, RBL IMEA, BU Masterbatches who was attending the startup of the production unit. Additionally, Mr. Stefan Schroeer-Elpers, Head of Global Product Management Liquids, BU Masterbatches commented: Global standards with a substantially improved color-matching and shorter delivery times coming from a local source and as well as local technical support are the major benefits for our customers in Pakistan. PR
INDUSTRY WELCOMES TRIAL PRODUCTION OF CLARIANT INDIGENOUS LIQUID MASTERBATCHES Clariant has commenced commercial production of Liquid Masterbatches under International Brand name of HiFormer and introductory lots have been supplied to the industry. Polymer & Packaging International has learnt through market survey that first commercial trial supplies have been delivered to some 15 customers in the industry. What is satisfying to the industry sources is that two or three customers have tested and approved them while the approval from rest of the customers is in process. This innovative development by Clariant is laden with immense potential for local industry which has so far been catering to their requirements through imports, but with the availability of indigenous liquid Masterbatches they have the option of switching over to indigenous source of supply. It goes without saying that the availability of indigenous source of supply will not only facilitate the local industry by saving them from hassles of imports but also it will proportionately save critically valuable foreign exchange for the country. Moreover, the impact of indigenous production of liquid Masterbatches is two-pronged as the company, Clariant, is already targeting IMEA i.e. India, Middle East, & Africa for exporting their products and once they capture IMEA markets and initiate their exports, it will also be bringing the precious foreign exchange to the country. Staff Report
10 | Polymer & Packaging
Post Show Report
Creating Opportunities For The Stakeholders Of Plastic, Packaging and Allied Industries
P
A
K
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S
T
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The 11th Edition of Plasti&Pack Pakistan 2013 was arranged by Pegasus Consultancy from 5 - 7 September at Expo Center Lahore. Plasti&Pack was inaugurated by Provincial Minister of Industries, Commerce & Investments. More than 130 exhibitors from 20 countries participated in the event. Sourcing agents from various countries of the region also visited the show for their requirements. In more than a decade of succession, Plasti&Pack Pakistan has emerged as an important trading gateway for international companies to get in touch with Pakistan s plastic processing & packaging industry. This year again, leading local & international suppliers of raw material, injection & blow molding machines, packaging machines, extrusion, coding, testing, printing & labeling technology displayed their products to attract preferred buying audience which came from all over the country to meet them. Plasti&Pack Pakistan 2013 received resolute support from trade bodies & government institutions. The show was also widely publicized by local & international media. Pegasus Consultancy is very thankful for receiving this cooperation from its supporting partners.
Annual Packaging Forum 2013 ANNUAL PACKAGING FORUM 2013 Annual Packaging Forum took place on 7th September 2013. The theme of the seminar was SMART PACKAGINGCONVERTING PRODUCTS INTO BRANDS Annual Packaging Forum proved to be a unique learning experience for the attendees as they discussed new ideas and emerging trends of packaging face to face with the high profile industry professionals from Engro Foods, Macpac Films, Multivac UAE and Nestle Pakistan
Exhibitor Information & Survey
130+
LEADS GENERATED
INTERESTED FOR 2014
NUMBER OF EXHIBITORS
42% LOCAL PARTICIPATION
58% INTERNATIONAL PARTICIPATION
12 | Polymer & Packaging
10-30
30-50
More Than 50
YES
WILL SEE
International Participation
Visitor Information OTHER CITIES
VISITOR ACCORDING TO INDUSTRY 02% 03%
02%
05% 02%
02% 21%
Abbottabad Bahawalpur Bhai Pheru Gujrat Hafizabad Haripur Hub Hyderabad Jahanian Jhang Jehlum Kasur
Khanewal Krishan Nagar Malakand Mardan Mian Chunnu Multan Muridke Nankana Sahib Narowal Nowshera Okara Pasroor
TOTAL NUMBER OF VISITORS
7,500
05% 03%
06%
26%
10% 13% Food & Beverages, Dairy (MNCs / FMCGs) Plastic, Printing Packaging / Packaging Machinery Engineering, Automotive, Surgical / Home Appliances General Traders, Importers / Exporters Chemicals / Paint Bakers, Hotels, Restaurants / Super Stores Textile & Garments / Shipping & Logistics
Pharmaceuticals / Herbal Products / Cosmetics PVC Pipe Manufacturers Financial Institutions & Educational Institutes Power / Energy / IT Services Rice, Sugar, Flour, Feed, Seed Mills & Cement Associations, Chambers /Foreign Missions /Media,
9.25% 52%
2.25%
Testimonials
Pakistan is a big market of plastics with high business potential. We believe Pakistan plastics industry is ready to move into the next phase of technological advancements and exhibitions like Plasti&Pack can play an important role in helping the industry to achieve this goal Mr. Walter Jungwirth
Manager Project & Sales, Global Star Hong Kong
The event provides Borouge with an opportunity to meet with current and potential customers to discuss their needs and introduce the region s plastics convertors to our advanced solutions, technologies and expansion projects, Mr. Hazeem Al Suwaidi
6.25%
6% 4.25%
Senior Vice President Middle East Africa, Borouge
It is a good exhibition. We had a very busy day meeting suppliers of machinery & spare parts
14.5%
Top Management (Chairman, M.D, CEO s) Sales & Marketing (Brand Managers) Business Development & Research Technical / Production / QA Purchasing / Procurement /Engineers
LAHORE KARACHI FAISALABAD GUJRANWALA RAWALPINDI ISLAMABAD
We have received tremendous response & definitely, we would like to be part of next Plasti&Pack edition to further promote our PET bottle solutions to Pakistan market Mr. Geoffrey
1.25% 1.5%
TOP 6 CITIES
Director Global Business Development, Engel
VISITOR BY JOB FUNCTION 1.5%
+
Pattoki Peshawar Rahim Yar Khan Sahiwal Sargodha Sheikhupura Sialkot Sukkur Swabi Vihari Wah Cantt
Operations / Manufacturing Supply Chain / Logistics Factory / Plant Finance & Accounts / Admin Others
Mr. Abdul Razzaq
Engi Plastic Industries
Polymer & Packaging | 13
Nordmeccanica is No.1 with 65% global market share: Renzo Bogani By: Ahmed Qaiser Nordmeccanica Spa is the world s leading manufacturuer and supplier of Laminating Machines. Recently, they acquired Galileo Metallizers as well. Mr. Renzo Bogani, the Commercial Director, Metallizing Division of Nordmeccanica Group visited Pakistan in December, 2013. Polymer & Packaging International has interviewed Mr. Bogani for its readers.
Q: Could you explain the background of your company? A: Practically, Nordmeccanica Spa, Italy is the number one company in the world in laminating machines. This statement is confirmed by the fact that we enjoy 65 percent share of the global market and it makes Nordmeccanica the absolute leader of the market. In February, 2013 we bought Galileo Metallizers. We made some changes in Galileo machines; we completely changed the electrical parts while introduced some changes mechanically and then we entered the market in April. In just eight months we have sold eight (8) machines while we have built a new plant over an area of 6,000 sqm in Piacenza close to the headquarter of Nordmeccanica. We also introduced some improvements including enhancement in the speed and increase in number of booths in the chamber so as to make machines offer much better performance. From January, 2014 there will be two families of machines: one will be NordMet and the other as PowerMet. The word of our President 14 | Polymer & Packaging
of Nordmeccanica is: Quality, Quality, Quality, and Service!
Q: What is the secret behind the success and leadership of Nordmeccanica?
Q: Would you like to describe your career?
A: In my opinion the first is the highest uniformity in the metalizing. Second, it is imperative to effectively control possibly automatically - the quality of the thickness and to have a very strong group to make vaccum and our machines have the best. Third, our metallising machines fully meet the requirements of the customers; whatever they need from a machine, we provide them.
A: I have a very rich experience of selling metallising machines all over the world. I began my career with Galileo far back in 1981 where I worked until 1998 when I joined another company and stayed with them for nearly five years. Then I initiated a private set up and ran it until Nordmeccanica procured Galileo and its President contacted me to look after metallizing devision for them. In all, I possess an experience of over 35 years and one thing that I can add here about me is that I know each and every metalizing company in the world. In fact, the metallizing is here in my mind and that is why when company s president asked me to suggest improvements in the design of the machines, I had no difficulty in having the machines improved to best suit the requirements of the customers worldwide. Now, practically we have the best metallizing machines to offer to the customers and our machines are the best to facilitate the customers needs. Q: What impression did you gather by visiting the local industry? A: This is my first visit in Pakistan and I have visited few customers. I have found people technically sound and abreast with the latest technological developments and innovations. The quality of equipment they use is first line machinery and my impression about the industry is very nice.
The cleaning forms the ninety percent of the quality; if the machines do not clean, they do not have the quality. In our machines it is very convenient to clean out of the chamber and this, coupled with other characteristics, makes Nordmeccanica as the first and best choice of the customers. Q: What prospects do you see for your machines in Pakistan in 2014? A: This is a very good question. Based on my recent visits I can say that Pakistani market is a promising one and I see hopeful prospects of selling our machines in Pakistan in the year 2014. Here people are abreast with latest technological developments and have the ability to appreciate the quality of Nordmeccanica products. We hope to enter the market in 2014 and, for that year, we have budgeted to sell two or three machines in Pakistan.
Injection moulding trends in Pakistan
The plastics industry in Pakistan is going through some major changes, and setting its sights high. Increasing consumption, stricter quality requirements, and rapidly increasing energy costs are forcing manufacturers to modernise their factories. The focus is increasingly on productivity and unit cost. Pakistan is vastly different from other regions in Asia, South America and eastern Europe. On the one hand, you will find brand-name injection moulding machines in plastics processing companies, however, most of them have been operational for more than 25 years; on the other hand, you will also see more recent, low-tech machines. Additionally, machines from Taiwan are deployed in applications with strict quality requirements. Most production cells are semi-automatic, in particular, post-processing is typically a manual step. The moulds are made locally, or imported from China and Korea. This basis makes it difficult for the local industry to cope with increasing demand. The population is growing rapidly and a strong middle class is developing. Further challenges for the industry are the widespread lack of a transport infrastructure and the inadequate power supply. On the other hand, the industry also benefits from a large labour market – including highly-qualified engineers and skilled labourers – as well as its geographical position, which predestines Pakistan as an export country.
Maximising efficiency potential In individual cases, it is important to evaluate which injection moulding machine promises the lowest total cost of ownership for the application in hand. For example, an all-electric ENGEL e-mac injection moulding machine with an energy consumption of just 0.4 kWh/kg pellets achieves a return on investment during the first two years of operation. Using a tiebar-less ENGEL victory injection moulding machine helps the processor to save both money and time, thanks to the far shorter tooling times, and the two-platen injection moulding machines from the ENGEL duo model series, with their compact design and very short dry cycle times, help the processor to optimise their use of shop floor space, while reducing cycle times and thus substantially reducing unit cost. Over the next few years, it will be interesting to observe whether the plastics industry in Pakistan succeeds in successfully establishing itself on the international markets. One major precondition for this is leveraging existing efficiency potentials to maximum effect through state-of-the-art injection moulding machines, moulds and process technologies. Author Walter Jungwirth, Director New Business Development, ENGEL AUSTRIA GmbH, Schwertberg/Austria
The demand for injection moulding machines is growing, and at the same time product quality, productivity and availability are becoming increasingly important. Unit cost is replacing investment outlay as a decision-making criterion. Drinks and packaging industry doubles market volume Current analyses predict that the volume of Pakistan's drinks industry will double by 2015. The packaging industry is growing at the same rate. Energy efficient machines and technologies are needed to cope with this growth. In just two months, Pakistan's energy prices have risen by more than 50 percent, but many injection moulding machines deployed in the country still have a power consumption of 1.8 to 2.4 kWh/kg of plastic pellets. This is three times the consumption of a state-of-the-art hydraulic injection moulding machine from the ENGEL victory model series, and six times that of an all-electric ENGEL e-mac machine.
To be able to choose the right injection moulding machine, it is important to precisely analyse the production process. This is the only approach to maximising efficiency potential. Left: An all-electric ENGEL e-mac injection moulding machine. Centre: An ENGEL victory injection moulding machine with a tie-bar-less clamping unit that substantially facilitates mould changes. Right: An ENGEL duo largescale machine with ecodrive energy saving option.
The efficiency potentials are just as great in medical technology, where the processing equipment performance and product quality requirements are particularly high. Pakistan's industry has no other choice than to adopt global standards. The automotive industry imposes the strictest requirements worldwide. While suppliers in Europe secure a competitive advantage thanks to application specific know-how, for example, in the fields of lightweight design and process integration, small production runs and thus poor production efficiency are currently the greatest challenges that Pakistan's manufacturers are facing. The key to greater efficiency lies in optimum capacity utilisation of the injection moulding machines. To be able to use various moulds on a single machine, the injection moulding machines need to be flexible and configurable; and they need to support fast mould changes on top. Besides the tie-bar-less ENGEL victory series, the ENGEL duo and ENGEL duo pico injection moulding machines with clamping forces of 350 to 5500 tonnes optimally fulfil these requirements in the higher clamping force range.
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Plastics processor worldwide.
High Expectations Exceeded at K 2013 Dornscheidt, President & CEO of Messe Düsseldorf, delighted along with his team at the excellent response: Once again it becomes very clear that K is and remains the most important event in the rubber and plastics industry! This is where new technologies are premiered alongside fully matured further developments and this is also where orders are placed for these innovations. Foreign visitors to K 2013, in particular, showed an extremely high willingness to invest and one in two visitors came to Düsseldorf with specific purchasing intentions in mind. Even if the size of delegations from the individual purchasing companies dropped slightly, no firm producing or using plastic goods missed this chance to find out about the innovations of today and the trends of the future at K 2013. The previous event in 2010 saw 222,486 visitors and 3,094 exhibitors taking part..
Photo: Polymer & Packaging International
Many Pioneering Innovations prompting a Remarkable Number of Business Deals Concluded at the Trade Fair Exhibitors anticipate Strong PostFair Business It was with great expectations that companies from the plastics and rubber industries came to Düsseldorf, to the world s most important trade fair in their sector, K 2013. The upturn experienced in the sector for months now along with the confidence of its companies to be able to showcase pioneering product innovations for all sections of the value added chain raised justified hopes of a good fair and brisk post-fair business. And these expectations were actually even exceeded over the eight days of the trade fair. Exhibitors reported unanimously on numerous concrete project enquiries, intense negotiations with trade visitors from throughout the world and a remarkable number of business deals, some of which were concluded instantaneously and quite a number of which were worth millions.
the fair and shared by the over 3,200 exhibiting raw material producers, processors and machinery producers to an equal extent. Exhibitors particularly highlighted the now even wider international spread of visitors and their great specialist expertise plus the fact that a disproportionately high number of top managers had made the journey to Düsseldorf. The results of the exhibitor survey present a disproportionately positive picture: 86% of all exhibiting companies rate the commercial success at the trade fair as very good to satisfactory. 82% have high expectations about post-fair business. The some 218,000 trade visitors to K 2013 came from over 140 countries. Werner Matthias
Chairman of the Exhibitors Advisory Board for K 2013 Ulrich Reifenhäuser was extremely pleased with the results: We had not expected visitors willingness to invest to be this high! The many innovative products and applications premiered in Düsseldorf met with great interest from trade visitors. And the innovations were not just admired as many, very concrete negotiations were held and contracts were signed. Many customers are extending their capacities and are investing in new technologies to sharpen their global competitive edge. We very confidently anticipate strong post-fair business and expect continuing growth in our sector. This view was echoed throughout all areas of
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Photo: Polymer & Packaging International
Results from the visitor survey also underpin this view held by exhibitors that the international flair of visitors has risen once again: 59%, i.e. 128,000 trade visitors, came from abroad. Just under half of all foreign visitors came from overseas travelling to Düsseldorf from as far away as Angola, Burkina Faso, the Falkland Islands, the Yemen, Malawi, Nepal, New Caledonia, Oman, Peru and Turkmenistan. As expected, the proportion of trade visitors from Asia accounted for the largest group of foreign visitors some 28,500 specialists came to the Rhineland from South, East and Central Asia as well as from the Near and Middle East. Visitors from India were once again the largest group here while the number of trade visitors from China, Indonesia, Iran, Japan and Taiwan rose. Also posting a plus was the proportion of visitors from North America: some 7,800 visitors were registered from the USA and Canada. Some 10,600 specialists came from Latin America. Forming the largest contingent were
proportion of visitors from research, development and design was also considerable. Visitors high professional qualifications were also especially emphasised by exhibitors: 93% described them as very good to satisfactory. Solutions for saving resources and energy efficiency dominate many product launches and the sector is marked by a desire to manufacture products in an environmentally friendly yet cost-effective way. Machinery and plant construction, the largest exhibiting sector at K 2013 with some 1,900 exhibitors, was also at the focus of visitor interest: just under two-thirds of all visitors polled said they particularly wished to gather information on the innovations in this sector. For 42% of trade visitors the presentations of raw and ancillary material producers were of prime interest while 22% mainly directed their attention to semi-finished goods and technical components
Photo: Polymer & Packaging International
experts from Brazil, Mexico, Colombia, Argentina and Venezuela. Amongst visitors from neighbouring European countries the Netherlands dominated with 9,600 visitors followed by France (some 8,700 experts), Belgium (about 7,200), Italy (about 6,100) and Great Britain(about 5,800). There was also a noticeable rise in interest from Spain, Poland and the Czech Republic. Across all national borders there was a disproportionately high number of managers amongst trade visitors: about two-thirds came from top or middle management. Well over half played a decisive or co-determining role in their companies investment decisions. The
made of rubber and plastic (multiple responses possible). Visitors came from all key user sectors from the building industry and vehicle construction, packaging as well as electrical and medical engineering through to agriculture. Overall, visitors to K 2013 gave their best grades to the range on show in the 19 halls of the exhibition centre: 96% affirmed that they had fully achieved the goals of their visit. Special Show Kunststoff bewegt Plastics move the World Also meeting with great interest amongst trade visitors from throughout the world was the K 2013 special show entitled Kunststoff bewegt Plastics move the World . This show highlighted the contribution made by plastics to a life in movement . The aim here was to address the direct contribution of plastics to the varied facets of mobility as well as emotional movement for instance, by way of art and design. Future-oriented issues revolving around the major themes of population growth, energy needs and climate change were also discussed. The stand opening on 16 October saw Germany s former Foreign Minister Joschka Fischer discuss the issue of sustainability. The next K Düsseldorf will be held from 19 to 26 October 2016.
Photo: Polymer & Packaging International
Swiss Plastics 21-23 January 2014 Lucerne, Switzerland
Interplastica 28-31 January 2014 Moscow, Russia
Saudi Plastics & Petrochem 17-20 February 2014 Riyadh, Saudi Arabia
IPF Bangladesh 20-23 February 2014 Dhaka, Bangladesh
Sino Pack 2014 3-5 March 2014 Guangzhou, China
Plastics & Rubber Vietnam 4-6 March 2014 Ho Chi Minh, Vietnam
Plast Sofia 5-7 March 2014 Sofia, Bulgaria
Cables 11-13 March 2014 Cologne, Germany
Plastex 13-16 March 2014 Cairo, Egypt
International Fair of Plastics & Rubber Processing 26-28 March 2014 Poznan, Poland
Plastixexpo 27-29 March 2014 Parma, Italy
Plast Show 1-4 April 2014 Sao Paulo, Brazil
Plast Alger 6-8 April 2014 Algiers
GPCA 7-9 April 2014 Sharjah, U.A.E.
Plasti Vision Arabia 7-10 April 2014 Sharjah, U.A.E.
Plastic Japan 16-18 April 2014 Tokyo, Japan
Chinaplas 23-26 April 2014 Shanghai, China
PlastPack Sri Lanka 25-27 April 2014 Colombo, Sri Lanka
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th GPCA PlastiCon 2014, the 5 International Conference for Plastic Conversion, will take place between 7 and 9 April 2014 at the Expo Centre in Sharjah, UAE. Since its launch 5 years ago, GPCA PlastiCon has become the leading conference for plastic conversion in the Middle East. The plastics conversion industry in the region continues to expand, utilising the enormous resources and networks of the upstream industry in the GCC. GPCA PlastiCon regularly attracts more than 350 attendees from across the globe. These attendees are able to expand their knowledge and their networks across the entire plastics value chain, both upstream and downstream. In 2014 the overall conference theme will be Exploring growth through innovation in the plastic conversion industry . The conference programme will focus on global and regional market developments for plastics products. Programme highlights include case studies from international companies, a focus on innovations in plastics products, an in-depth analysis of new resins from the GCC, and a showcase for developments in printing technologies for plastics and plastics in healthcare. GPCA PlastiCon 2014 will also offer two in-depth optional seminars for attendees, focussing on two key opportunity areas Opportunities with Plastic Pipes and Product Improvements through Masterbatches . At this early stage, confirmed conference speakers include representatives from leading organisations such as the Society of Plastics Engineers, MS High Technology Films, Sadara Chemical Company, SABIC, Windmoller & Holscher, PIRA, GEA Food Solutions and WIPAK Healthcare. As well as the conference and seminar sessions, GPCA PlastiCon will also include the GPCA Plastics Excellence Awards on 8 April 2014. The Awards are designed to recognise excellence in plastics products, research, talent and innovation. If a company, individual, academic or student has displayed excellence in plastic conversion innovation, they can enter and be recognised via a range of industry awards. For the first time in 2014, GPCA PlastiCon will be held in conjunction with the PlastiVision Arabia 2014 a major exhibition for the plastics industry. PlastiVision Arabia in 2012 brought together over 150 exhibitors from 19 countries, along with 7000 visitors from 66 countries. PlastiVision Arabia 2014 is organised by Expo Centre Sharjah, in association with the All India Plastics Manufacturers Association and with the support of the Sharjah Chamber of Commerce and Industry. The Expo will display raw materials and machinery for key segments such as plastic
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processing, injection moulding, thermoforming, packaging, industrial users, construction, automotive and telecommunications, amongst others. According to GPCA figures, the GCC s petrochemicals and chemicals output will reach 191 million tonnes by 2020, and increase of 50% against 2012 figures. Petrochemical production in the GCC has increased by 5.5% in the past year, despite a slowdown in other global petrochemical markets. Through GPCA PlastiCon 2014, we aim to further educate the plastics and polymers industry, with the event being a one stop shop for plastic processors who can not only benefit from the co-location with PlastiVision Arabia 2014, but can also attend the conference to learn more about the latest technology and industry developments. said Dr Abdulwahab Al-Sadoun, Secretary General of the GPCA. The Gulf Petrochemicals and Chemicals Association (GPCA) is a dedicated non-profit association serving its members with industry data and information resources. It is the first such association to represent the interests of the petrochemicals and chemicals industries in the Arabian Gulf and it has brought a major dimension to its task by creating both a forum for discussion and a place where like-minded people can meet and share concepts and ideas. Since its inception in March 2006, the GPCA has earned an enviable reputation for steering the regional industries towards a whole new level of cooperation and raising the standard in terms of common ground interests.
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