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Plastic Industry

Plastic Industry

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Published by Smita Nayak

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Published by: Smita Nayak on Aug 27, 2010
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06/01/2011

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AGENDA

         

Introduction History Plastic Industry Structural Composition Sectoral Composition Plastic Processing Demand & Supply Projection Swot Analysis Issues Concerning The Sector Suggestions /Conclusion

PLASTICS

´Any of various complex organic compounds produced by polymerization, capable of being molded, extruded, cast into various shapes and films, or drawn into filaments and then used as textiles fibersµ. fibersµ.

Why Plastic is Popular?            Attractive Hard Soft and Rubbery Easy to clean Flexible Good insulator of heat or electricity Light weight Hygienic Easy to shape and color Economical NonNon-rusting Material .

. product.TYPES OF PLASTICS  THERMOPLASTICS Plastics. which are capable of being repeatedly softened by heat and hardened by cooling. are called Thermoplastics  THERMOSETTING PLASTICS These are plastics which when cured change into a substantially infusible or insoluble product.

STRUCTURAL COMPOSITION  RAW MATERIALS  FINISHED GOODS .

RAW MATERIALS  Polyethylene (PE) Polypropylene (PP) Polystyrene (PS) Polyvinyl Chloride (PVC    .

Now there is no plant producing polyethylene.RAW MATERIALS (cont«) POLYETHYLENE (PE) PE. POLYETHYLENE 19991999-00 20002000-01 20012001-02 20022002-03 20032003-04 20042004-05 QUANTITY 74486 94300 126459 126674 154877 156419 VALUE IN Rs. has established its usage in packaging film. automotive and industrial parts. household articles. the leading thermoplastic material.(000) 2548275 3089661 3665918 4490603 6234121 5545009 .

POLYPROPYLENE 19991999-00 20002000-01 20012001-02 20022002-03 20032003-04 20042004-05 QUANTITY (M. Tons) 65160 85691 33294 102457 109466 144051 VALUE IN Rs. furniture and packaging film.RAW MATERIALS (cont«) POLYPROPYLENE (PP) PP is used in the form of woven bags. household articles. There is no plant producing polypropylene at present.(000) 2202654 2369840 2556355 3205623 3956245 4785727 .

23.268 13. .398 23.A CONSUMPTION 13.387 16. household articles. 15.400 23.017 11. 36.938 18. 30. 14. IMPORT 11.524 30.627 11. 16. 7.452 14.RAW MATERIALS (cont«) POLYSTYRENE (PS) PS is being consumed in electrical and electronic parts. 23.470 1.394 16. 16.469 15.689 17.302 1. 17.756 N.798 11. 18.000 36. automotive parts and packing material YEAR 19991999-00 20002000-01 20012001-02 20022002-03 20032003-04 20042004-05 PRODUCTION 1.

food packaging. profiles.RAW MATERIALS (cont«) POLYVINYL CHLORIDE (PVC) PVC is an important material used for wide range of applications. electronic components. foot-wear and cables footPOLYVINYL CHLORIDE 19991999-00 20002000-01 20012001-02 20022002-03 20032003-04 20042004-05 QUANTITY 43848 47861 64103 31604 14884 13145 VALUE IN Rs. pipes & fittings. furniture. PVC is used for doors.(000) 1338186 1521952 1779792 1120967 650554 571637 . windows.

Footwear Film for Packaging. Packaging. Bottles and Pipes Woven Bags. Pipes House ware & Medical Applications & Pipes House & Sanitary Wares.RAW MATERIALS (cont«) BREAKDOWN OF PLASTICS MATERIAL WITH GROWTH PLASTICS Poly Vinyl Chloride (PVC) END USE INDUSTRIES Pipes. Auto Parts. Artificial Leather. Packaging. Electrical Parts GROWTH (%) 10 Polyethylene (PE) 27 Polypropylene (PP) 17 Polystyrene (PS) 6 . Cable Coating. Auto Parts.

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4 111.A.) 19961996-97 19971997-98 19981998-99 19991999-00 20032003-04 20042004-05 4.325 6. 238 600 443 686 33. Machined & Heat Treated parts.) Resin & Allied Products.A. Cups Molded Furniture HDPE Sacks & Woven Sacks Commode covers.5 . Jars. Pipes and fittings Plastic Films Waste Processed Products YEAR QUANTITY (Million Tons) VALUE (Million RS.780 11.035 N. N. Crockery items (Forks. Flushing mechanisms.FINISH GOODS                   PET bottles. Crankshafts) Telecommunication Parts Fan parts Medical Instruments (Syringes.873 12. Household Kitchenware Water Filter Automotive parts Electronics parts Plastic Sheet Forged. etc.

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SECTORAL COMPOSITION  PLASTICS UNITS LOCAL RAW MATERIAL PRODUCERS  .

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Film.PLASTIC PROCESSING NO. Pipe. Sheet & Thermoforming. MOLDING PROCESS PRODUCT Pipe. Bottle Pack case For Egg (Thin Film Product) Suitcase (Thick Sheet Product) Bottle. Profile. Bucket. Doll 1 2 3 4 5 6 Extrusion Molding Injection Molding Blow Molding Vacuum Forming Pressure Forming Rotation Molding . Etc. Wire & Cable Etc. Housing Of Office Automation Container. Fiber.

DEMAND & SUPPLY PROJECTION  DEMAND & SUPPLY RAW MATERIAL  DEMAND ESTIMATES FOR MACHINERY  DEMAND ESTIMATES FOR ENGINEERING THERMOPLASTICS .

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DEMAND & SUPPLY RAW MATERIAL (Metric Tons) PRODUCTS CONSUMPTION 2001 ² 2002 Polyethylene (PE) Poly Propylene (PP) Polyvinyl Chloride (PVC) Polystyrene (PS) Total 157500 144000 78000 23400 402900 ESTIMATED DEMAND 2004 .2010 340000 205000 120000 45000 710000 .2005 235000 150000 95000 35000 515000 2009 .

DEMAND ESTIMATES FOR MACHINERY Injection Molding 250-500 250- Blow Molding 350-500 350- Extrusion 1000 .

DEMAND ESTIMATES FOR ENGINEERING THERMOPLASTICS YEAR ABS Polyamide PBT Molding Material Polycarbonate Polydactyl 2004 11000 700 200 6000 1000 .

Sound Cash flows      . highSeveral Large Units are also present.SWOT ANALYSIS STRENGTHS   Easy availability of cheap labor Increasing domestic market having demands from both low-end lowand high-end segments. Acceptable as international Avenue for Exhibitions / Seminar / Foreign Buyers visit. Industrial Zones facilities are available. Location is a competitive strength.

Planning. Export. Traditional designs and no innovations. outside. Weak Association. scattered. The manufacturers are dependent on imported raw material from outside. cluster. Not getting benefits from support institutions. Lack of Research & Development efforts.SWOT ANALYSIS (cont«) WEAKNESSES          The industry is largely unorganized and scattered. Lack of vision / Planning. . innovations. institutions. efforts. Nominal Export. Professional management is not perceptible in the cluster.

providers. Linkages with BDS & Support service providers. trade. Product Marketing New and innovative products      . Globalization and free trade.SWOT ANALYSIS (cont«) OPPORTUNITIES  Pakistan is emerging as a major consumer market and international demand is also on the rise for plastics. plastics. Industry. Strong National Economic indicators working for benefit of Industry.

High custom duties on Raw Material Local Market Penetration by regional competitors.SWOT ANALYSIS (cont«) THREATS  Globalization and free trade. High Quality Standards.    .

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ISSUES CONCERNING THE SECTOR  DUTIES & TAXES ENVIRONMENTAL HAZARDS PROBLEMS   .

DUTIES & TAXES   Plastics sector remains one of the major contributors Import duties have been gradually reduced from 110 percent to 10 percent on major plastics materials Adjustable sales tax on manufactured plastics goods is 15 percent To calculate total duty A factor of 64 percent is used for PP/PVC and 50 percent for PE Six percent income tax is not refundable to traders Sales tax on manufactured plastics goods is 15 percent      .

DUTIES & TAXES (cont«) DUTIES & TAXES Custom Duty (All Plastics) Polyethylene High Impact Polystyrene Pet Material Sales Tax Income Tax on Imports % 5% 5% 5% 10% 15% 1% .

cancer.     . lines. In addition. problems. In the rural areas. content. hazard. Burning the waste releases dioxin .a class of 75 chemicals . country. made of recycled plastic which increases their toxic content. Used plastic bags are found in abundance in the streets and are responsible for clogging drains and sewerage lines. these bags decrease the productivity of the arable land because they do not rot or turn into compost. Plastic's non-biodegradability poses serious environmental and health nonproblems. the black bags. the additives used in processing plastics results in the presence of substances that are a serious health hazard.which is carcinogenic and causes birth defects and other serious ailments like cancer. The most dangerous are compost.ENVIRONMENTAL HAZARDS  Plastic bags are an environmental hazard and their production and use need to be disallowed in the country.

Interrupted power supply is not only affecting production but also damaging the expensive machines. growth. Lack of information on potential export markets is an impediment to export growth. whereas the unregistered buyers can get any amount of the Plastics materials by paying 16. components. Incentive for deletion is limited to a few components. exhibitions. institutes. Lack of adequate training institutes. machines.      .5 percent sales tax. 16. Export Promotion Bureau needs to enhance its cooperation with the manufacturers in international exhibitions.PROBLEMS  Sales Tax for the organized sector is 15 percent. tax.

Tariff on High Impact Polystyrene (HIPS) has been reduced to 10 percent from 25 percent that is hurting the local industry. control. Sales tax on import of moulds is not adjustable against output tax.PROBLEMS (cont«)   PSI is not playing its due role for better quality control. market. tax. There are no export ware houses particularly for capturing South African market. industry. Lack of financial assistance. Intellectual property and copyright laws are not strictly enforced     . assistance.

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items. (EPB). Establishment of plastics website providing information on imports. waremarkets. exporters. Holding national and international exhibitions. EPB should ensure participation of genuine exporters.      . Pakistan. international associations. plastics processors in Pakistan. Providing more realistic export rebate for PP woven sacks and other items. Export ware-houses in target markets. exhibitions. exports.SUGGESTIONS  Creation of a plastics desk in the Export Promotion Bureau (EPB).

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