News & Events

CIPAD 2014 Global Assembly was held from 22nd June to 24th June 2014 at Berlin Germany.

It was an excellent opportunity for networking on International Forum where Global Association leaders meet and present their country papers, exchange ideas, information, news, for two days and get updated specially from converters and Machinery producers angle.

This time it was attended by 11 countries i.e. USA, UK, Germany, Italy, Canada, Finland, Switzerland, Mexico, India, Spain and South Africa plus it was addressed by leading global speakers.

  1. Willem De Vos - SPE USA – Smart Plastics and Future Technology
  2. Remko Koster – Director HIS Chemical (Europe) – over view of the raw material scenario
  3. Dr. Rudiger Baunemann Director General – Plastics Europe – Raw material scenario in Europe
  4. Dr. Jurgen Bruder – General Director – German Association for Plastics Packaging and Films – Growth status in Germany.


India as a country their concern was because of downturn in our economy. Our GDP is less than 4%, and corruption level is high. Countries like Germany and Italy they were not able to sell much of their plastic machines in India. From their angle we are not amongst the top ten importers of their machines in 2013-14 whereas export to China from Germany was up by 30%. USA was also leading importer in their list. Europe – USA see everything from business to business angle only.

Before start of my presentation I had to dispel their fears about Indian economy with change of government in India and new Prime Minister Shri Narendra Modi, who has 14 years of administrative experience and responsible for progress of Gujarat. We Business people can bank upon and we are very hopeful turn around in Indian economy.

My country paper along with ten others are attached or sent to AIPMA.

USA
Current scenario of plastic industry in USA and Europe is very positive. US Manufacturing has become very competitive. US Plastic Industry is the 3rd largest in US. New investment of $ 9.6 Billion has come on new capital equipment. The demand of plastics is on high level. The total Plastic export in 2013 was $ 60.1 Billion. Shale Gas production has increased by 440% between 2007 and 2012. By 2020 they are expecting to employ 2.1 Million jobs.

Refineries are making good profits. No Naptha crude based conversion to polymers now in USA. As per Observation, costing of polymers in USA is as follows:

Crude Based Polymers Gas based polymers
Say Rs. 2 Say Rs. 1

i.e. polymer produced price in USA is cheaper than Crude based elsewhere. Polymer producers are selling at international prices thus making handsome profits.

UK
UK GDP expected to grow 3% this year. Manufacturing grew by 1.4%. Business investment grew by 2.7% and unemployment has fallen. Bank Interest rate is 0.5% since last five years.

They want to drive used plastics from landfill by 2020 and would like to concentrate more on recycling and energy recovery. UK government wants 5P charge for thin plastic carrier bags.

UK is sitting on BIG LAYERS of Shale Gas and it will be very important game changer for UK. Their future is bright. They are more confident now.

GERMANY
In the world production plastics and rubber machines in 2013 Euromap had 40% sales, China 30%, Germany 22.2, Italy 8.1%, US 6.6% and Japan 4.4%.

They are disturbed because last year they did not sell any machinery of much value to India though there was growth of 30% to China and USA. India does not fall in their list in top ten market last year.

German Plastic Industry – no. of companies – 2640, they employ 315000 people. They are on the growth path. Packaging grew by 3.5%, construction grew by 2.1%, Medical grew by 2.7%. Most of the companies expect increase in turnover with increase in margin and increase in exports.

They have very high recycling rate and no issue on bags or there is no discussion on environment as they have been able to solve the problem to 100% recycling.

JAPAN
The Japanese economy is on a moderate recovery trend. Business investment is picking up. Export and industrial production is almost flat. Corporate profits are improving. They produce plastic raw material 10.6 Million Tons and products nearly same quantity. Their major raw material produce are PE 24.9%, PP 21.6%, PVC 14.1%, PS 7%, PET 5%, ABS/SAN 4.3% and rest others.

Plastic consumption packaging is 37.4%, Building material is 24.8%, Automotives 8.1%, Agriculture is 6.4%, Houseware 5.2% and rest others.

They export plastic waste to the tune of 18 Lac tons per annum to countries like China, Taiwan, Malaysia, South Korea etc.

Trend of waste recycling in Japan, 80% is utilized – Mechanical recycling (22%), Liquefaction Gasification, Blast Furnace (4%), Densified refuse derived fuel (12%), Incineration with power generation (32%) and incineration with heat utilization facility (10%) and Unutilized (20%) – Incineration without power generation or heat utilization facility (10%) and Landfilling (10%).

ITALY
Italian machinery export was little lower. Europe 46.4%, North America 9.8%, South America 9%, Africa 5.8% and Asia 16.6%.

Amongst the Top Ten markets Germany was no 1, i.e. 14.3%. France 5.7%, USA 5.6%, Poland 4.9%, China 4.7%, Russia 4.7%. In Italy they have 11000 companies and they employ nearly 1,60,000 employees. They expect this year to be better.

CANADA
In Canada there is slow but steady growth. Business and consumer confidence improving, higher investments and positive intentions about profits. There are 3170 companies of Plastic processing and employing around 95,000 employees. They have problems for the issues like plastic shopping bags bans and taxes, Vinyl tin stabilizers, phthalates, flexographic emissions etc.

They would like to divert plastics from landfill, reduce marine debris and increase recycling and energy recovery. They are working on it.

FINLAND
As country is small but have a good base of plastics. They are having 580 converters and 12000 employees. There are Resin producers of PE, PP, EPS etc.

Because of the negative publicity brought up problems not solutions. There is weak popularity of industry in general among young talents. Finland is the right country to make plastic product piloting before going full scale.

SWITZERLAND
Economical recovery is seen. GDP growth is up by 1.9%. Inflation rate is 0.2% and unemployment rate is 3.2%. Swiss Plastic Machinery export is up by 3%, Injection Moulding Machine 2.2%, Thermoforming Machines 19.1%, Blow Moulding Machines 14.2%, Extruders -6.9% and Moulds for rubber or plastics 14.5%. They export plastic machinery to top 15 countries. India stands 12th whereas Germany is no. 1 and US – No. 2 and China is no. 5 in their list. They are more focused on precision machinery which are one of the best in the world.

MEXICO
Mexico is an important representative of the plastic industry of South America.

Mexican economy fell within instability and low growth. From 1981 to 2013 the country grew at the rate of 2.1% per annum. It has FTA with 43 countries.

The Plastic industry in Mexico had a positive performance in 2012. After several years the production grew at 4.8% and consumption at 5.9%. Plastics exports increased at 28%. Their current polymer consumption is 6.41 Million Tons. They had a good growth in Automobile and packaging industry. The polymer consumption is led by PP 22%, PET 14%, PE 9%, PS 10%, PVC 9% and rest others.

There are 4530 plastic manufacturing companies and they gave employment to 2.20 Lac employees.

ANIPAC, their Association is working on training programme that will include eco design of plastics, savings reducing use of materials and savings using renewable energy. They have signed agreement for Marine Litter – Zero Pellets (Operation Clean Sweep).

SOUTH AFRICA
In South Africa the overall GDP growth was 3.8% and manufacturing was 11.6%, Per Capita consumption 27kg of plastics. They have 1800 converters and convert 1.4 Million tons of prime material per annum. The Plastic industry in South Africa employs 60000 people. 55% of polymer goes into packaging. Last year plastic industry grew by 2.2%.

Plastic Industry market sector – Building & construction 15.3%, Flexible Packaging 25.8% and Rigid Packaging 28.7%. Automotive and transport 5.5%, Electrical & Electronic appliances 5.8%, Engineering 4.8%, Agriculture 4%, Housewares 2.8%, Medical 1.8% and rest others.

Recycling industry – South Africa recycles 3 Lac tons per annum having 210 recycling companies. They employ 45000 people and recover around 34% of the plastic material. It is one of the highest mechanical recycling country.

SPAIN
Though the economy is in bad shape, there is improvement in the sentiment in general that they will have a good year ahead.

AIPMA
Activities highlighted
  1. Redevelopment of AIPMA building
  2. Plastic News (Monthly)
  3. Bulletin (15 Days)
  4. Board Meets every month
  5. AIPMA has its own offices in East, North and South zone offices to cater the needs of all regions.
  6. Activity – Job Fair, conferences, SME workshop, management up gradation
  7. PVI 2017 Mumbai – now UFI approved – very successful - 2013
  8. PVA – 2014 - Sharjah - 28 countries participated. Next PVA 2016 - Sharjah
  9. Product Exhibition under planning for 2015 Mumbai
  10. MOU with SPI USA – BPF UK – Assocomoplast Italy and many other countries
  11. Representation to government of India for pre-budget for taxation streamlining and technology upgradation for modernization of plastic industry. To address Environmental issues- solutions proposed.
  12. All India Association meets including the raw material associations for growth with AIPMA as Convener.

SPI – Society of Plastic industry – USA
Activities highlighted
  1. Annual Programmes – workshops etc.
  2. Plastics Champion Meet At Washington DC, Meet congress man etc.
  3. Communication and Outreach i.e. with ACC and others
  4. Washington Fly in - 8 Trade Association, 78 Attendees, 92 Meeting. To reform outdated Laws
  5. District wise study of Plastic industry i.e. wages, taxes they pay, employees employed and discussion with the local Member of Parliament.
  6. Plant Tours – every 3 weeks alongwith the Congress man
  7. Networking with members Mobile, Web, I phone, I pad etc.
  8. By December 2014 SPI is moving to a much bigger rental space for office in Washington DC near White House area.


All above activities are profit generating or self supporting except core activity funded by SPI. Overall SPI makes profit in all activities.

NPE 2015 slogan - WE MAKE GREAT THINGS HAPPEN

NPE Space – Last NPE 2012 - 106000 Sq.ft. sold. This time it is 30% more and participation by 130 countries. Visitors – last time 56000 and this time 65000.

Overall, all countries are on growth path in Plastic Industry. They are now more optimistic of doing more business with India and they expect Indian Plastic industry to be as good as China.
 
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