paints market - industry profile

Industrial Modernization Center

Industrial Modernization Program

EExxppoorrtt SSuuppppoorrtt SSttuuddyy ffoorr PPaaiinnttss aanndd CCooaattiinngg

IInndduussttrryy

Reference No.

PS_442.RE

Prepared by

TTaallaall AAbbuu--GGhhaazzaalleehh AAssssoocciiaatteess LLttdd

Member of

TTaallaall AAbbuu--GGhhaazzaalleehh OOrrggaanniizzaattiioonn

Cairo, December 2008

This report prepared by: Dr. Mohamed A. Sherif Omran (Team Leader/ International Consultant-Economist); Eng. Mohey Abdel-Razic (PMP, Paints and Coating Expert); Eng. Ahmed Maher Mohamed (Paints and Coating Expert); Shaymaa Mohamed Omran (Consultant-Economist); Silvana Saad Salama (Junior Consultant-Economist); Ahmed Samy (Junior Consultant); Islam Mohamed (Trainee).

Export Support Study for Paints and Coating Industry – Ref: PS_442.RE Submitted to: Industrial Modernization Center – Industrial Modernization Program Prepared by: Talal Abu-Ghazaleh Associates Ltd. Page ii of 56

Submission Letter (to be scanned and inserted here)

Export Support Study for Paints and Coating Industry – Ref: PS_442.RE Submitted to: Industrial Modernization Center – Industrial Modernization Program Prepared by: Talal Abu-Ghazaleh Associates Ltd. Page iii of 56

Contents RESULT BASED LOGICAL FRAMEWORK ................................................................................................. V

I. SECTOR ASSESSMENT ................................................................................................................................. 6 I.1 INDUSTRY STRUCTURE .................................................................................................................................. 8

I.2 RECENT LAWS, LEGISLATIONS AND REGULATIONS OF PAINTS AND COATINGS INDUSTRY ........................... 12

I.3 INSTITUTIONAL STRUCTURE THAT SERVES PAINTS, COATINGS AND RESINS SECTOR .................................... 14

I.4 MARKET STRUCTURE ................................................................................................................................... 17

I.4.1 Egyptian economy and importance of the paints and coating sector .................................................. 17

I.4.2 Paints Market in Egypt ....................................................................................................................... 21

I.4.3 Industrial Coatings Market in Egypt .................................................................................................. 23

I.4.4 Global Coatings Market ..................................................................................................................... 24

I.4.5 Egyptian market share of the industry in the international market .................................................... 26

I.4.6 Local market supply and the competition structure ............................................................................ 26

I.4.7 Sales and Marketing strategies ........................................................................................................... 28

I.4.8 Existing Support to paints, coatings and resins industry .................................................................... 28

I.5 MANUFACTURING PROCESS OF PAINTS, COATINGS AND RESINS .................................................................. 29

II. DATA COLLECTION/ SOURCES ............................................................................................................. 30

II.1 SECONDARY DATA ..................................................................................................................................... 30

II.1.1 Main producers of Paints and Coating by country ............................................................................ 30

II.1.2 Egyptian Imports of Paints and Resins and their Raw Materials ...................................................... 31

II.1.3 Egyptian Exports of Paints and Coatings .......................................................................................... 34

II.2 SWOT DATA (STAKEHOLDERS) ................................................................................................................. 36

II.2.1 Who are the Stakeholders? ................................................................................................................ 36

II.2.2 Paint and Coating Exporters’ Population and Sample Size: ............................................................. 37

III. ANALYSIS ................................................................................................................................................... 39

III.1 PAINTS AND RESINS EXPORTS ................................................................................................................... 39

III.2 EU DEMAND ON PAINTS AND COATING PRODUCTS .................................................................................. 40

III.3 EXPECTED EU AND NON-EU EXPORTS OF PAINTS AND COATINGS........................................................... 41

III.4 EXPECTED DEMAND ON EGYPTIAN PAINTS AND COATING TO INTERNATIONAL MARKETS ........................ 42

III.5 SWOT ANALYSIS ..................................................................................................................................... 43

III.5.1 Private Sector Stakeholders: .................................................................................................... 43

III.5.2 Public Sector and Government Stakeholders ................................................................................... 48

IV. RESULTS AND FINDINGS........................................................................................................................ 48

IV.1 A PLAN TO OVERCOME THE WEAKNESS AND THREATS THAT FACE THE PRODUCT ..................................... 48

IV.2 EXPECTED EXPORTS AFTER EXPORT SUPPORT ........................................................................................... 52

IV.3 EMPLOYMENT ........................................................................................................................................... 53

IV.4 INVESTMENT IN THE INDUSTRY AND EXPECTED GROWTH AFTER THE SUPPORT ......................................... 54

IV.5 EFFECT OF ENERGY PRICING SYSTEM ON PAINTS AND COATING INDUSTRY ............................................... 54

V. CONCLUSION AND RECOMMENDATIONS ......................................................................................... 54

V.1 RECOMMENDATIONS: ......................................................................................................................... 54

V.2 SUGGESTED STUDIES .......................................................................................................................... 56

Export Support Study for Paints and Coating Industry – Ref: PS_442.RE Submitted to: Industrial Modernization Center – Industrial Modernization Program Prepared by: Talal Abu-Ghazaleh Associates Ltd. Page iv of 56

Annexes No. of Pages

Annex A: A simple industrial profile model with expected economic indicators for a medium scale project for producing 2 types of paints and a type of resins. 12

Annex B: Manufacturing Process 10

Annex C: Recent Laws, legislations, and regulation of paints industry 10

Annex D: Top Paints Manufacturing Companies 1

Annex E: Paint’s Exports by HS Codes and countries 2

Annex F: Custom Duties 5

Annex G: HS Codes for Raw materials and Intermediate and final Products 2

Annex H: Environmental Screening 12

Annex I: Self Monitoring 128

Annex J: List of interviewed organizations 2

Export Support Study for Paints and Coating Industry – Ref: PS_442.RE Submitted to: Industrial Modernization Center – Industrial Modernization Program Prepared by: Talal Abu-Ghazaleh Associates Ltd. Page v of 56

Industrial Modernization Center (IMC) Export Support Study for paints and Coating Industry

Result Based Logical Framework

Hierarchy of Objectives

Expected Results

Reach Performance Indicators Baseline and Indicative Targets Timeframe

Assumptions/ Risks Baseline Targets

1. Goal (long term objective) Promote Egyptian Industrial Exports

1. Impact Increased Egyptian exports

1. Beneficiaries Exports and industrial sectors

1. Impact Indicators 1.1 Total Egyptian Exports 1.2 Industry GDP Source& Method: Egypt: 5-year forecast table, Country View, Economist Intelligence Unit; Zawya website, last updated: 24 June 2008. Note: Indicators at this level are generally monitored and or evaluated via sector or country strategy reports.

Baseline Value (base year=2007) 1.1 EGP 177.9 bn (2007) 1.2 EGP 158.7 bn (2007)

Target Values (target years) 1.1 EGP 208.0 bn (2008), EGP 233.9 bn (2009), EGP 259.5 bn (2010), EGP 287.7 bn (2011), EGP 319.8 bn (2012). 1.2 EGP 170.9 bn (2008), EGP 184.4 bn (2009), EGP 196.4 bn (2010), EGP 206.4 bn (2011), EGP 216.5 bn (2012).

Assumption statement: 1.1 Private sector takes the lead in improving the Egyptian export sector in the fluctuated International markets. Mitigation strategies: 1.1 Government strategy is to support the export sector.

The baseline and targets are at constant 2001/02 prices. (bn: billion)

2. Purpose (medium term objectives) Improve paint and resin sector in Egypt

2. Outcome: Increased paint and resin’s exports

2. Beneficiaries Exporters and paint and resin’s producers (raw materials and end products)

2. Outcome Indicators 2.1 Paint & resin’s exports Source& Method: * Data warehouse, MTI/ GOEIC. * ComTrade Website

2.1 $83 m (2007)

2.1 $119 m (2009), $139 m (2010), $163 m (2011), $191 m (2012), $224 m (2013).

Assumption statement: 2.1 Reduction of international prices. Mitigation measures: 2.1 The study suggests 12% of proposed support to mitigate unexpected price decrease.

3. Project Inputs & Activities 3.1 Paint & resins assessments 3.2 Collecting required data 3.3 Analysis 3.4 Reporting

3. Output 3.1 proposed subsidy level(s) 3.2 Simple industrial profile model & study recommendations

3. Beneficiaries Paint and coating producers (raw materials and end products)

3. Output Indicators 3.1 paint & coating export support 3.2 Adoption of proposed industrial model & study recommendations

3.1 No financial support is in the base year (2007) but there is technical support through existing agencies, such as IMC. 3.2 Proposed industrial models& study recommendations

3.1 Proposed financial support: 12% i.e. $14 m (2009), 12% i.e. $17 m (2010), 10% i.e. $16 m (2011), 10% i.e. $19 m (2012), 5% i.e. $11 m (2013). 3.2 Proposed three industrial models& study recommendations

Assumption statement: 3.1 Expected subsidy level is higher than what was expected Mitigation measures: 3.1 The proposed subsidy will be phased out in 5 years.

1 2 3 4 5a 5b 6

Export Support Study for Paints and Coating Industry – Ref: PS_442.RE Submitted to: Industrial Modernization Center – Industrial Modernization Program Prepared by: Talal Abu-Ghazaleh Associates Ltd. of 56

Export Support Study for paints and Coating Industry

I. Sector Assessment First of all, it is important to know what are paints and coatings. The following paragraph is

a good start to know what are paints and coatings: “…. what are coatings? Coatings are

everywhere; they are all around us. If you are reading this report in an office, then your desk,

PC, telephone, the shelving on the walls and even your cabinets will all have been given some

form of coating. At home your television, fridge, furniture and most of your other household

items will also rely on coatings for protection and outward appearance. Then there’s the

paint used to decorate the walls both at home and work. Of course, the car (or the train, or

the bus) that you used to travel between the two will also have coatings on their exterior and

interiors, as well as on all their moving and non-moving parts. How about the airplane you

take to your international meetings, the boat you cruise on during vacations, the bridges you

cross, the buildings you pass, the list goes on and on. Coatings are a central part of the

world we see around us every day…”1 (The Global Coatings Report 2006)

Paints and coatings are well known long time ago. The Ancient Egyptian used it to write and

draw pictures on the walls of their Temples and Pyramids. It is a very well known and old

industry in Egypt.

Paints can be divided into two main types: decorative (architectural) and the industrial.

Alkyd Resins group is one of the intermediate products needed for manufacturing synthetic

architectural and industrial paints. Also, Paints entails contents of resins, pigments, solvents,

and additives.

The study focused on the following HS 1992 Codes:

Paints: HS 1992 Codes: 3208 – 3209 – 3210 – 3214

3208 - Paints and varnishes (including enamels and lacquers) based on synthetic polymers or

chemically modified natural polymers, dispersed or dissolved in a non-aqueous

medium; solutions as defined in Note 4 to this Chapter.

3209 - Paints and varnishes (including enamels and lacquers) based on synthetic polymers or

chemically modified natural polymers, dispersed or dissolved in an aqueous medium.

3210 - Other paints and varnishes (including enamels, lacquers and distempers); prepared

water pigments of a kind used for finishing leather.

1 Akzo Nobel’s Inaugural Global Coatings Report “The Global Coatings Report 2006: Painting a picture of the industry”, 2006.


3214 - Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics;

painters' fillings; non-refractory surfacing preparations for façades, indoor walls,

floors, ceilings or the like.

Resins (intermediate products): HS 1992 Codes: 3903 – 3905 – 3906 – 3907 - 3908

3903 - Polymers of styrene, in primary forms.

3905 - Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl

polymers in primary forms.

3906 - Acrylic polymers in primary forms.

3907 - Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates,

alkyd resin, polyallyl esters and other polyesters, in primary forms

3908 - Polyamides in primary forms.

Raw Materials: HS 1992 Codes: 3204 - 3206 - 3207 - 3211 - 3212 - 3803 - 3805 - 3806 -

3814 - 3815 - 3823 - 3909 - 3912

3204 - Synthetic organic colouring matter, whether or not chemically defined; preparations as

specified in Note 3 to this Chapter based on synthetic organic colouring matter;

synthetic organic products of a kind used as fluorescent brightening agents or as

lumin

3206 - Other colouring matter; preparations as specified in Note 3 to this Chapter, other than

those of heading 32.03, 32.04 or 32.05; inorganic products of a kind used as

luminophores, whether or not chemically defined.

3207 - Prepared pigments, prepared opacifiers and prepared colours, vitrifiable enamels and

glazes, engobes (slips), liquid lustres and similar preparations, of a kind used in the

ceramic, enamelling or glass industry; glass frit and other glass

3211 - Prepared driers.

3212 - Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in

liquid or paste form, of a kind used in the manufacture of paints (including enamels);

stamping foils; dyes and other coloring matter put up in forms or packing's for reta

3803 - Tall oil, whether or not refined.

3805 - Gum, wood or sulphate turpentine and other terpenic oils produced by the distillation

or other treatment of coniferous woods; crude dipentene; sulphite turpentine and other

crude para-cymene; pine oil containing alpha-terpineol as the main constituent.

3806 - Rosin and resin acids, and derivatives thereof; rosin spirit and rosin oils; run gums.

3814 - Organic composite solvents & thinners, n.e.s.; prepared paint/varnish removers


3815 - Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere

specified or included.

3823 - Industrial mono-carboxylic fatty acids; acid oils from refining; industrial fatty

alcohols.

3909 - Amino-resins, phenolic resins and polyurethanes, in primary forms.

391220 - Cellulose nitrates (incl. collodions), in primary forms

391231 – Carboxymethyl cellulose & its salts, in primary forms

For more details about these HS 1992 Codes see Annex G.

I.1 Industry structure

• There is increasing demand for different types of water base emulsion polymers for

the production of paints for indoor uses, ready made putty and sealers.

• The use of water base emulsion is compliant with EC directives and the

environmental Legislation.

• The estimated consumption of the Egyptian paint industry is around 50,000 – 60,000

MT/year.

Raw Materials:

Monomers

Catalysts

Acrylic Acid

Preservatives

Surfactants

Formulation

Acrylic Polymers are custom made to fit industry

needs

Processing

Polymerization Process (homopolymerization, Copolymerization, etc)

Locally Consumed Products

Sales & Marketing

Locally Produced RM

Exported Products

Quality Control

By-Products & Wastes Imported RM

Local Demand (only paint industry): 50,000 – 60,000 Tons

Local Production: 50,000 Tons (for all industries …. including paints, leather, carpets, …etc)

Local Producers: Only three main Producers (Vinavyl Egypt – Eagle & Clariant JV Company) - Projected production in EAP and expansion projects in existing producers.

I. ACRYLIC POLYMER EMULSIONS


• While the estimated local Production (for all industries …. including paints, leather,

carpets,…etc) is 50,000 Tons , so there is a big gap in Supply/Demand equation,

which creates a feasible investment opportunity in this domain.

• Local Producers: Currently there are only three main Producers for such products

(Vinavyl Egypt – Eagle & Clariant JV Company) – But in the meantime there are

projected productions in EAP and expansion projects in existing producers.

• The main competition comes from:-

* Turkey (Organik Kymia)

* Dow, Jebel Ali, Dubai

* Synthomer Middle East, Saudi Arabia

II. Resins

Raw Materials:

Oils/ Monomers

Fatty Acids

Poly Acids

Polyols

Solvents

Catalyst

Imported

Locally produced

Processing:

1. Addition

2. Reaction

3. Thinning

4. Filtering

5. Adjusting

6. Filling

Formulation:

Resin is generally custom-made to fit the needs of industry customers

Marketing

Quality Control

By-products/ waste

Exported products

Sales

Domestic producers of Paints

Exporters


III. Paints

Raw Materials:

Pigments

Solvents

Binders

Additives

Imported

Locally produced

Processing:

1. Mixing

2. Grinding

3. Finishing

4. Filling

Formulation:

Paints are generally custom-made to fit the needs of customers

Marketing

Quality Control

Emissions/ waste

Exported products

Local consumption

Wholesalers

Contactors

Retailers

Painters

Exporters

PAINTS

Architectural (Decorative) Paints (65%by volume & 51% by value of the market) Comprises:-

Synthetic paints

Emulsion paints

Synthetic varnish

Tinted paints

Informal sector contributes 15%

Industrial Paints (35% by volume and 49% by value of the market) Comprises:-

OEM automotive coating

Automotive refinishing paints

Stoving electrostatic enamels

Metal work stoving enamels

Wood coatings

Heavy duty paints

Marine paints

General purpose industrial paints

• Volume: 417,000 tons (2000-2005)

• Value: LE 2.1 billion (2000-2005)


Paint and Coatings Inputs:

Paint and coatings industry is utilizing about 57% of its inputs from domestic resources.

These resources are raw materials, energy, packaging, human resources & equipments. The

following table shows an average distribution of the cost elements.

Table 1.1: Source of cost elements in manufacturing of paints and coatings, 2007-2008

Inputs % of input cost of

total cost Imported

component Domestic

Component

Raw material* 80% 55% 45%

Energy 2% 100

Packaging 3% 5% 95%

Human Resources 10% 100%

Depreciation of Assets (buildings, machines, equipments, etc)

5% 100%

Total 100% 43% 57%

* The raw materials percent (domestic & imported) are weighted average for Architecture and Industrial paints. Source: Interviews and experience of paints and coatings professionals.

Paints and Resins Production:

According to available data for the period from 2005-2008, the national average production

of paints is about 613,000 ton. It is value is LE 2.9 billion (at fixed price of the period 2000-

2005). The utilized capacity is estimated at 84% of the available capacity of paint and

coatings production, for one shift. The support of the paints industry will improve the

utilization of the available capacity without new investments. The current unutilized capacity

of production (which is estimated at 16% for one shift) can be totally absorbed. Moreover,

the increase in capacity utilization can reach 116% of total available capacity in case of

working two shifts (16% + 100%). These production capacities do not include resins as an

intermediate product for paint and coatings industry.

Egypt exports about 10% of its resins production as an exported final product; the other 90%

is being utilized as an input (intermediate product) for domestic paint industry. Resin

production is estimated at 136,000 ton as an average of the period 2003-2007. The unutilized

capacity of resin production is estimated at 29% of the available capacity of resin production.

It is expected that the resin capacity will be expanded to meet the increase in the international

and domestic demand.

Table I.2 represents the average quantities and values of production of decorative and

industrial paints during three periods: 2000/2005, 2005/2008 and 2008/2013. The table

shows the efforts in producing resins locally to reduce the imported resins.


The percent of domestic components, as an average of the period 2000/2005 was about 52%

and it was increased to 56% as an average of the period 2005/2008, and it is expected to be

increased to reach 63% in the period 2008/2013. This will be achieved by the efforts of the

companies in the sector and the expected support of the government.

Table I.2: Production of Decorative and Industrial Paints through the periods 2000/2005, 2005/2008, and 2008/2013

Period Paints Average Production Average Inputs

000'ton % Billion LE* % Local Imported

2000-2005

Decorative 271 65% 1.1 51% 52% 48%

Industrial 146 35% 1.0 49% 52% 48%

Total 417 100% 2.1 100% 52% 48%

2005-2008

Decorative 462 75% 1.8 63% 60% 40%

Industrial 151 25% 1.1 37% 52% 48%

Total 613 100% 2.9 100% 57% 43%

2008-2013

Decorative 620 75% 2.5 63% 68% 32%

Industrial 202 25% 1.5 37% 56% 44%

Total 822 100% 3.9 100% 63% 37%

Note: Value of production was estimated using fixed prices (average prices of the period 2000-2005). Source: quantities of production from 2003-2008 from the Industrial Development Authority (IDA) and from 2000-2002

from the interviews and experience of paints and coatings professionals.

I.2 Recent Laws, Legislations and regulations of paints and coatings industry

The Egyptian paints market has always demonstrated competition over the past years, mainly

in the architectural sector. The market is characterized by a large number of low quality paint

producers (mainly emulsion paints). Currently the government is taking serious and strict

steps towards improving quality across the paints industry through the enforcement of

Egyptian quality standards.

Environment Aspects:

There are number of laws and regulations that address the different environmental violations.

The following are the laws applicable to the paints industry.

• Law 4/1994 & its executive regulations (gaseous emissions from combustion of fuel -

incineration of solid waste - Gas emissions generated in the production lines - gas

emissions in boiler house - temperature and humidity in Work Environment – noise -

Ventilation - Smoking - control of hazardous materials and wastes - keeping

Environmental Register - …).

• Law 38/1967 amended by Law 31/1976 (the collection and disposal of solid wastes)


• Decree No. 134 of 1968 Ministry of Housing, Utilities and Urban Communities

(MHUUC) (guidelines concerning Solid Wastes)

• Law 43/1979, the Law of Local administration, (Concerning Solid Wastes)

• Law 137/1981 for Labor & Minister of Housing Decree 380/1983, Minister of Industry

Decree 380/1982 (Work environment conditions )

The industry follows number of pollution abatement (prevention) measures in the three media

(air, water and soil). These include: In-plant modifications - In-Process modifications - End-

of-pipe (EoP) measures

Although Egyptian Environmental Laws do not require water and energy conservation

measures, these measures are being considered in the industry (using natural gas – using solar

cells – recycling waste products - …)

Also the industry applies (to a certain extent) the Cleaner Production concept (CP) for

pollution reduction through in-process, in-plant and resource conservation, in

contradistinction to end-of-pipe treatment. In many cases, the adoption of CP could eliminate

the need for (EoP) treatment.

For more details regarding the above section, refer to Annex C. In addition, Annex H

includes the Environmental Screening Form B and Annex I includes Self-Monitoring Manual

for Paints Industry; which are very important for environmental aspects.

Quality Standards:

Manufacturing paints involves handling & using many of hazardous materials. Mishandling

of such materials could lead to severe safety or environmental consequences.

• The Products must meet Egyptian standards No. 1539/2008 (Emulsion Paints), No

1757/2008 (Matt Paints) & No. 793/2008 (Gloss & Semi gloss Paints)

• International Standardization Organization certificates: ISO 9001 of Quality

Management - ISO 14001 of Environment related issues Management - ISO 17025 of

Lab. Results Credibility - & others)

• The European Directive 2004/42/CE, this sets out limitations on emissions of VOC due

to the use of organic solvents in most decorative paint.

• The EU agreed to carry out a second round of impact assessments on its controversial

Registration, Evaluation and Authorization of Chemicals (REACH) proposal, the mood

both inside and outside the chemicals industry has gradually started to shift, with

disparate factions beginning to coordinate efforts to improve the proposals. REACH

was first presented in May 2003 as a solution to EU concerns about the safety and

administration of chemicals. The aims of the proposed new regulations, which would


replace 40 separate pieces of current legislation, are meant to decrease human and

environmental exposure to chemicals whilst simultaneously enhancing the

competitiveness and innovative capabilities of the EU chemicals industry. Under the

proposed legislation, the European chemicals industry would have to register the

properties of substances with a central EU database. The process is expected to take

until 2016 to complete. Meanwhile, the availability of chemicals to consumers,

particularly low-volume niche products, will decline.

Currently the government is taking serious and strict steps towards improving quality across

the paints industry through the enforcement of Egyptian quality standards. All Egyptian

Quality Standards in Paint Industry had a backup reference to other International Standards

(e.g. ASTM – DIN - …). Also these Standards are now based on paints performance rather

than paints formulation, thus giving enough room to innovative R&D activities in cost

savings-product development-performance improvement and other related criteria.

I.3 Institutional structure that serves paints, coatings and resins sector

The generic structure of involved institutions in an economy is the organizations that are

managed by government, public sector, PARASTATAL, and non-government agencies. Each

of these organizations has its role in each sector of the economy. The importance of the role

may differ according to the nature of the sector. Chart 1.1 presents this generic structure and

the role of government in each category. It is important to say that the government has a

specific role in all of the institutions in the economy.

The following is a brief description of the institutions that serve the paints and coating export

sector in Egypt:

1) The government organizations, such as, but not limited to:

Ministry of Finance: Egyptian Customs Authority and Tax Authority

Ministry of Trade and Industry: Commercial Representation Sector (CRS), Egyptian

Organization for Standardization and Quality (EOS) and General Organization for Export

and Import Control (GOEIC)

Ministry of State for Environmental Affairs: Egyptian Environmental Affairs Agency.

2) Public Sector such as the Egyptian Petrochemicals Holding Company.

3) The PARASTATAL organizations such as the Chemical & Fertilizers Export Council and

the Chamber of Chemical Industries. These organizations are considered to be under a

kind of supervision of the government. In addition, these organizations are attached to

the whole government system. The government issues a decree to appoint the export


councils members. Although, the Chairman of the Chamber of Chemical is elected by the

members of the chamber, the government appoints the Chairman of the Federation of

Egyptian Industries, which is on the top of all Chambers.

4) The last category is the Non-Government Organizations (NGOs) which is not well

presented in the paints and coating export sector. The generic structure of an NGO is the

domination of the private sector on establishing, preparing objectives and managing it. In

addition, these NGOs have to be endorsed by the Government (by Law) and be under the

monitoring system of the government.

The absence of the NGOs in the paints and coating export sector causes the scattered

behavior of the paints and resin exports. In addition, the absence of NGOs delays the

development and improvement of the whole paints and coatings sector.

The major institutions that provide direct support to paints and coating sector are the

Chemical and Fertilizer Export Council and the Chamber of Chemical Industries. The two

institutions are PARASTATAL institutions, i.e., they are under direct supervision of the

government; however the private sector is playing a major role in them. This does not

undermine the role of these PARASTATALS, which are very important in the transitory

periods to facilitate the communication between private sector and government. Even, in

Organization

Government

Public Sector

PARASTATAL

Non-Government (Associations)

Role of Government

Direct Management

Indirect Management

Supervision

Direct Monitoring

Examples for the paints & coating export sector

Customs, Taxation, environment, EOS, GOEIC

Egyptian General Authority for Petroleum

Chemical Chamber and Export Council

Private sector associations (do not exist in the

paints and coating export sector)

Chart 1.1: Major Relationships between Private Sector and Government Institutions

Source: Sector interviews

Private Sector companies

Indirect Monitoring

Private sector companies (Producer and Exporters)


case of having a private sector association, the government has to monitor its performance.

In addition, the Industrial Modernization Center (IMC) is another institution that provides

valuable kinds of support to develop the paints and coatings industry.

Paints and Coatings Sector is in a great need to have a pure private sector institution to reflect

its needs and provide its own solutions.

Chemical & Fertilizers Export Council (CFEC) is an organized framework for exporters and

producers in the chemical and fertilizers domain. It provides consultancy work in the

preparation of strategies and plans to increase Egyptian exports of chemicals and fertilizers

sector and improve its efficiency. The vision of CFEC is to integrate all companies in the

chemical and fertilizers field to increase its exports. The mission of CFEC is to develop and

promote Egyptian exports of the Chemical and Fertilizers Industries to increase their

competitiveness in the international markets, especially the small and medium enterprises

(SMEs). The Council is composed of eleven divisions: fertilizers; plastic and rubber;

cleaners; papers; paints, coatings and inks; pesticides, glass products; organic chemicals;

inorganic chemicals; photo products and materials; and diversified chemicals.

Chamber of Chemical Industries (CCI) was founded in 1942 by ambitious small group of

businessmen in the field of chemical industries. The main roles of the Chamber are to

represent and defend the interests of its members on both national and international levels in

different business and technical issues. The Chamber is composed of six divisions:

Diversified Chemicals (411 members), Paints and Inks (310 members), Plastics (1,276

members), Detergents (152 members), Paper and Carton (100), and Rubber (145)1.

What is an association?

An association is a civil society organization/ non-government organization (NGO). It is

formed by a group of people (producers or traders) to achieve certain objectives. These

objectives cannot be achieved by individual producer or trader. The effectiveness of an

association is a result of how deep the members are convinced about the importance of its

objectives and work together as a team in order to achieving these objectives. The

association is a body to serve its members and the sector, as well. In addition, the associations

play a major role in the economic development through improving the competitiveness

1 The Egyptian General Organization for Industrialization, 2005.


position of its members within domestic markets and the competitiveness position of its

sector in the foreign markets.

Law 84 of 2002 is the most current law that regulates the civil society organizations in Egypt.

Under this law the association can perform a lot of activities for the benefit its members and

the sector as well, such as training and technical assistance.

The financial sources of an association are: membership fees, grants and light loans,

government exemptions, discount on large amount of purchases, other sources. The

sustainability of the association is a result of the success of the association. If the association

provides good services to its members it will be sustained for a longer period.

The paints and coatings sector is in a real need for association(s) to help resolving major

problems beyond the capabilities of each individual firm.

I.4 Market structure

I.4.1 Egyptian economy and importance of the paints and coating sector

Macroeconomic Overview1

According to in depth analysis by the Economist Intelligent Unit; the following is a brief

overview for the Egyptian economy concerning the Egyptian Government policy trends,

Economic growth and the inflation in Egypt.

Egyptian Government Policy Trends

The government's five-year National Development Plan, which covers the period from

2007/08 to 2011/12, has been partly superseded by more pressing concerns. To counter the

impact of rising inflation, a package of public-sector wage increases was implemented and

the food ration card scheme was extended to more low-income families. Measures introduced

so far have included sharp cuts in income tax rates and customs duties. The government has

also started to reduce fuel subsidies. Natural gas prices for energy-intensive industries will

increase, so that domestic prices will gradually converge on world market prices. Future

reform is expected to continue along similar lines, although at a measured pace, as the

government is aware of the risk of social dislocation if its liberalization programme moves

too quickly. Strikes and protests against privatization and rising prices may lead the

government to proceed more slowly with larger divestments, especially in the labor-intensive

manufacturing sector.

1 Economist Intelligence Unit


Egyptian Economic Growth

EIU outlook for Egypt's growth prospects remains broadly positive. Real fixed capital

formation continues to be the main driver of economic growth, owing to broad success with

the government's economic reform policies and strong demand in the manufacturing and

construction sectors. Over the next two years, investment will continue to be supported by

buoyant business confidence, as the government moves ahead with its improvements to the

business environment, and as private investment continues to expand. A number of large-

scale infrastructure projects will also sustain investment, helped by oil-driven liquidity from

the Gulf. However, economic expansion will be constrained by robust import growth, spurred

on by the manufacturing industries, even if the increase in capital goods imports promises

well for the future strength of the economy. There is a concern about the impact of rising

inflation, which, in the near term, is likely to put a strong constraint on private

consumption—another driver of growth—as it undercuts households' purchasing power.

Overall, it is expected that the GDP growth in 2007/08 will remain at 7.1%. Slower

investment growth in 2008/09, as many projects are completed, will result in a modest

economic slowdown, to 6.7%. If inflation does not fall by as much as it is expected in 2009,

private consumption is unlikely to recover and business confidence could be eroded by rising

interest rates.

Inflation in Egypt

Inflation averaged 9.5% in 2007, pushed up by rising food and energy prices. The year-on-

year rate of inflation rose sharply in the first quarter of 2008, to 14.4% in March and 16.4%

in April. The government has imposed a series of fuel price increases in recent months and

raised the sales tax on cigarettes on May 5th. Consequently, headline inflation soared to

19.7% in May and there could be more spikes in inflation, which could climb as high as 22%

before the end of 2008. Inflation is expected to average 17.1% in 2008 as price growth is

expected to remain high in the second half of 2008. However, in 2009 inflation should be

constrained by tighter monetary policy and the strength of the Egyptian pound against the

dollar, as well as by a strong base-effect from the second half of the year. Therefore it is

forecasted that inflation will average 9.7% in 2009. However, if the government continues to

cut energy subsidies, fuel prices will rise, and this in turn will affect inflation expectations,

leading to further, second-round price increases and demands for higher wages. With strong

domestic demand and high international commodity prices, the risks are strongly on the

upside.


Important Economic Indicators

Table I.3 represents selective economic indicators were defined for the period 2007/2008 and

predictions from 2009-2012, where it showed that the population is expected to increase

steadily to reach about 84 Million. Also the Country Growth Domestic Product is expected to

increase in a good pace to reach 278 Billion US Dollars, which is a sign of economic

improvement in the economy due to the merge in the international economy and the growth

all over the Egyptian sectors which is currently evolving and is expected to improve even

more in the next period.

Also this growth is reflected in the household consumption which is expected to grow by

108% from 2007 till 2012 to reach about 190 Billion US Dollars.

Regarding the percentage change in exports and imports from goods and services, it’s clear

that the predictions show a decrease in both indicators however the decrease in Imports is

greater than the decrease in exports which show a higher dependence on the external world in

the next period however the gap between exports and imports in 2012 is less than the gap in

2007, which show a better expected position in international trade.

Table 1.3: Selective economic indicators projections from 2007- 2012:

Years Population

(m)

GDP (US$ bn at market

exchange rates)

Household consumption

(US$ bn)

Exports of goods &

services (% change)

Imports of goods & services (% change)

2007 76 129.8 91.4 23.3 28.8

2008 77.5 172.7 120 17 20.8

2009 79.1 201.2 138.3 13.2 15.9

2010 80.6 223.3 153.1 10.6 14

2011 82.1 248.1 170.2 11.1 14.2

2012 83.7 277.7 190.3 11.9 15.1

Source: Economist Intelligence Unit – Zawya Premium

Petrochemicals

Below is the value chain of petrochemicals which show the petrochemical industry starting

from the Raw materials till reach the major end use markets. This chain is used to give an

overview about the whole chain of this sector and thus define its importance.


Source: Industry Insight Petrochemicals – Zawya

Investment and Employment:

The available data on investment and employment in the Egyptian paints and coating sector

includes ink. According to the Chamber of Chemical Industries, as of April 2008 the number

of paints and Coatings factories is 227 (including ink factories), with investments of LE 11.2

billion. According to the General authority of Export and Import Control (GOEIC), as of

July 2008 the number of paints and coating exporters is 388 of which 152 represent more

than 99.5% of the value of exports.

The following chart describes the relationships between the 227 producers and the 388

exporters. The number of companies who are producers and exporters is unknown. As a

general note; most of the important and detailed information about paints and coatings sector

was not available.

Producer Companies

Producer & Exporter Companies

Exporter Companies


The chemical industries contribution to the GDP is 26%1 and the paints sector contribution to

the chemical industries is about 14%, i.e. the paints and coating sector represents about 3.6%

of the GDP.

According to Egypt State Information Service, labor force at the national level is 22.4 million

(2006/2007). According to the Chamber of Chemical Industries, the paints labor force is

about 12,000 (2008).

I.4.2 Paints Market in Egypt

a. The estimated annual volume (formal and informal) of 271,000 tons and 462,000 tons of

architectural paints being consumed in Egypt as averages for the two periods (2000-2005

and 2005-2008) using the fixed prices of the period 2000-2005, which corresponds to a

per-capita consumption of 3.8 kg, including synthetic paints, emulsion paints, synthetic

varnishes and tinted paint. According to the current booming in construction in Egypt and

the small amount of imports of architectural paints, the sector should increase its domestic

production to satisfy the growing demand in Egypt.

b. The informal sector is estimated to form 15% of the whole volume.

c. Thus the formal sector is estimated to represents 350, 000 Tons of paints, with value of

LE 1.8 billion (average 2005-2008).

d. As an average for the period 2005-2008 (using fixed prices of 2000-2005), it is estimated

for the industrial paints to form 25% of the whole market (by Volume) & 37% (by

Value), i.e., 151,000 tons, with LE 1.1 billion. The contribution of the informal sector in

the industrial paints market is minor or negligible.

The Formal Egyptian Architectural paints market composition by volume & value are

estimated to be as follows:

Table I.4: Egyptian Architectural paints market composition by volume & value

Items by Vol.(ton) By Value (LE)

Synthetic Paints 30% 47%

Emulsion Paints 60% 36%

Synthetic varnishes 2.5% 4.5%

Tinted paints 7.5% 12.5%

100.0% 100%

Source: Companies' analysis.

1 Egypt State Information Service (SIS); www.sis.gov


The Egyptian paint industry is a highly fragmented one, with several players (including

"home-made" paints produced by the informal sector). Mainly around 50-60 local major

producers are satisfying most of Egypt's demand. There are more than 380 exporters of

paints and coatings products. However, only three companies export more than 65% of the

value of exported paints and coatings (2005-2007).

Consumers and market segments are divided as follows:

a. Regular paint traders who are divided according to the size of their business into

distributors, wholesalers, and retailers.

b. Tinting paint traders who are divided into outlets owned/managed by the manufacturing

companies, outlets owned by the trader and deals only in specific companies products

(Franchise scheme), and outlets owned by individuals & deal in products from

different/all companies.

c. Contracting segment that includes consulting firms, contractors, and decorators

d. Painters

e. Owners of buildings & houses.

The demands of these categories are diversified, from which are the following examples:

a. Regular paint traders evaluate level of demand on products, profit margins, and payment

facilities.

b. Tinting outlets evaluate the amount of marketing support given to them by the company,

price of the products, and the product diversification.

c. Contractors evaluate company’s reputation, availability of a complete system of paints,

technical specification of the products, and payment facilities.

d. The painter evaluates availability of products in different price categories to suit the

different demands of his customers, technical characteristics of the products, and the

different promotions available on the products.

e. Owner of the household evaluates color variety, different paint effects, and prices.

The customers identified 4 critical service requirements:

1. Product quality: to provide high performance upon application. (e.g. brushability - hiding

power - whiteness - color retention ..)

2. Product consistency: (minimum variation between batches, cans, orders) , (specially for

colored paints)

3. Availability: equivalent to on-time delivery. Therefore logistics & supply chain

management are key business elements.


4. Price: Fair pricing in such a competitive market is a key concern. The industry is highly

price competitive (the premium category forms only 10% of the market)

Some customers change suppliers for a marginal price advantage (big volumes sum up at

good revenue).

Customers consistently rank these as the most important product & services attributes.

Their relative importance may vary at times (e.g. at high demand season) and with different

customer categories.

I.4.3 Industrial Coatings Market in Egypt

Industrial coating is used to coat everything from exterior roofing to roads and bridges. It

must be able to protect the substrate from corrosion, abrasion and UV damage. But

increasingly, aesthetics and appearance retention are becoming important attributes as well.

Protecting the substrate–whether metal, plastic or wood–is the primary purpose of an

industrial coating. However, gloss, gloss retention and chalking resistance are critical factors

to consider, especially when the coated structure is visible to the public and may be viewed as

an eyesore. Also considerations of the functionality are there in terms of durability,

weatherability, excellent scratch-resistance and performance for initial and aged solar

reflectance and thermal emittance,

There are extensive industrial coatings portfolios, covering a vast array of markets and

technologies. Some of the primary application areas include automotive decorative parts,

consumer electronics, appliances, coils and extrusions, wood coatings& general metals.

Another area for growth is in maintaining aging infrastructure. Industrial maintenance is the

fastest growing segment for industrial coatings. As many of bridges, overpasses and storage

tanks age, the need for maintenance and recoating becomes more important.

The Egyptian industrial paint market consists of four categories in production descending

order:-

1- Car refinish

2- Wood varnishes

3- Protective and marine paints

4- Others, including auto OEM and powder coating

There are several challenges that are affecting the paints market including the rise in raw

materials costs, energy prices and the economic slowdown. The unprecedented escalation in

the price of oil, natural gas and raw materials is having a significant impact on everything

from manufacturing to shipping costs. The manufacturing companies should deal with these


challenges by focusing on the development of sustainable and renewable products. The

companies should also pay close attention to results of voice-of-the-customer interviews to

ensure all R&D efforts are being focused on marketable technologies & products.

In order to stay afloat in this challenging environment, industrial coatings manufacturers must

develop innovative solutions for their customers. Environmentally responsible and

sustainable products offer the industrial coatings market opportunities for growth.

The growth and increased awareness of green technology initiatives will continue to require

sustainable coatings solutions. In the aluminum extrusion industry, products which are low

Volatile Organic Compounds (VOC) coatings have less impact on the environment.

The production of resins and polymers is increasing in Egypt due to the increase in paint

production and exports, attention to be made for the production of styrene acrylic.

I.4.4 Global Coatings Market1

From global perspective industrial coatings are enjoying growth in a number of emerging

areas. Economic growth in emerging markets, as well as emerging regions, is key drivers of

growth for industrial coatings. Product and process innovations are other aspects that are

crucial for continued growth. Consumer product coatings are the current fastest growing

segment for the industrial coatings segments. These include everything from cell phone

covers and laptops to hairdryers and goggles.

Annex D presents the Top Paints Manufacturing Companies (with minimum annual revenues

of US$ 100 million) in 2007, with the nationality and revenue of each company.

The companies are ranked from 1 to 67 according to their revenues. Continentally, these

companies can be grouped as follow: Europe (25 companies) – North America (21) – Asia

(17) – Australia (2) – South America (1) – Africa (1). The top 5 companies are Akzo Nobel,

Henkel, ICI, Sherwin-Willims & PPG. It is worth noting that Akzo Nobel (the 1st top

company) acquired ICI (the 3rd top Company) in an acquisition agreement valued EURO 11

billion.

According to the Akzo Nobel’s Inaugural Global Coatings Report entitled “The Global

Coatings Report 2006: Painting a picture of the industry Coatings market is a growing one.

The report analyzed the different countries according to their economies and construction

sectors.

1 Akzo Nobel’s Inaugural Global Coatings Report “The Global Coatings Report 2006: Painting a picture of the industry”, 2006.


In 2005, the global coatings market was worth US$85.7 billion, or 26.5 billion liters. From

2001-2005, the annual growth was 2.7% in constant value terms and 4.2% in volume terms.

Between 2005 and 2010, the annual growth rate is forecast to accelerate, to 5.4% in constant

value terms, and 5.6% in volume terms because of the construction boom.

United States housing construction encouraged by low interest rates and changes in

demographics, as empty nests resize and relocate, and double income household purchase

new homes and remodel existing ones. The US current financial crisis will have negative

impact on the housing construction.

Turkey urbanization has resulted in housing and office building in major cities; economic

recovery driving investment in company premises and delayed building maintenance;

rebuilding of Marmara region following 1999 earthquake. In five and 10-year government

funded development program

China is the world’s largest construction boom, 2008 Beijing Olympics, plus 2010 World

Expo (Shanghai) and Asia Games (Guangzhou) leading to massive investment in urban

infrastructure. Home ownership has seen explosive growth since the closure of the

government backed welfare housing scheme in 1998, and the real estate market is officially

estimated to maintain its current rate of 10% over the next five years.

Brazil is new construction began to pick up post-2005, and was accelerated in 2004, the

government introduced the National Housing System to bring additional housing to a country

with a shortfall of more than seven million units.

Spain is a strong economy, high second home/tourism demand, and increased immigrant

demand has kept Spain one of the leading European countries in terms of new building starts.

In 2004, the UK Government announced a £3.5 billion program to build over 70,000

affordable homes in three years. This follows a period of slow housing construction, which

has led to under-supply.

Global demand to rise 3.9% annually through 2011

World demand for architectural paints is forecasted to rise by 3.9 percent per year through

2011 to reach 22 million metric tons, valued at $47 billion. Although respectable, growth will

decline in comparison to the performance of the 2001 to 2006 period, due to a significant

projected deceleration in global building construction expenditure growth through 2011.

Developing countries to be fastest growing markets

Gains will be paced by developing countries in the Asia/Pacific region, with the world’s two

most populous nations -- China and India -- both seeing large gains in their markets. In 2006,

architectural paint demand in China and India stood at 1.2 and 0.6 kilograms per person


respectively. In contrast, per capita demand in developed countries averages around nine to

twenty kilograms. North America will register weakest gains of all regions through 2011. The

current housing and mortgage crisis in the US portends unfavorably towards new residential

building construction spending growth through 2011, hindering paint sales to the new home

market. Moreover, sales to the much larger home repainting segment will also be hindered by

declining sales of existing homes -- which are often repainted when they are to be sold.

Western Europe will also register weak growth, with below average economic and building

construction growth prospects, mortgage sector weaknesses in some constituent nations and

stagnant regional population growth all to blame.

Water-based paints have expanded their dominance

Over the past decade, water-based paints have expanded their share of the global architectural

paint market from 62 percent to 70 percent. Solvent-based paints have seen a corresponding

decline in their share of the market, due to environmental concerns regarding their high

volatile organic compound emissions, and due to improving technology enabling water-based

paints to provide all the positive benefits of solvent-based paints without the associated

environmental negatives.

I.4.5 Egyptian market share of the industry in the international market

In 2005, the global coating’s market was worth US$85.7 billion, or 26.5 billion liters1; while

the Egyptian coating’s market was worth US$ 750 million, or 450 million liters.

Architectural Paints (also called Decorative Paints) in Egypt account for almost 75% by

volume and 63% by value, as average of 2005-2008. In contrast the share of Architectural

Paints stands globally at 45%, with the rest accounted for by industrial and special purpose

coatings.

I.4.6 Local market supply and the competition structure

* The Competitive position in Architectural Paints is as follows:

a. In Synthetic Paints (which forms 51% by value & 38% by Vol.) PACHIN is the market

leader, the next player is SIPES.

B. In Emulsion paints (which forms 34% by value & 54% by Vol.) SIPES is the market

leader, the next player is PACHIN

c. In Varnishes (6% by value & 4% vol.) MIDO, KAPCI and GLC are the key players.

1 (Ref.: Copyright Finni and Partners 2007/2008)


d. In Tinted Paints (9% by value & 5% by Vol.), the key player is JUTON, with PACHIN &

SCIB as the following players.

* The competitive position in industrial paints is as follows:-

• KAPCI, Mido and National are the main producers of car refinish,

• Al –Gammal is the main producer for auto OEM

• Juton is the key player in marine paints

• Pachin and MIDO are the leaders for protective paints

* The main players in resin and polymers are Vinavyl Egypt, Eagle, Clarent, EAB and

PACHIN

On the other hand, the Architectural Paints market is divided into three (3) price categories:

Premium, Middle, and Economic. Juton is the key player in the premium category, while

PACHIN is the key player in the middle category. There is no leader for the economy

category because of the large number of players.

The Egyptian paint industry is about to take off as a result of the forecast growth in the

construction sectors. This potential growth is emphasized by the favorable demographics

(50% under the age of 25 years), which will result in a significant demand for housing

within the next decade. This view is reinforced when one compares the per capita

consumption of paints in Egypt with that of other countries. The average per-capita

consumption in the nineties for Egypt is about 2.0 kg/per-capita1 which is very low compared

with the world average (15 kg per-capita) and the developed countries (22 kg per-capita).

Table 1: Average Consumption of Paints (Kg), 1990’s

Region Average kg/capita Egypt 2.0

India 0.6-0.7

South East Asia 4.0

US 31.0

Developed Countries 22.0

World 15.0

Source: Business Standard, Indian Paints' Industry: Emerging Trends and Opportunities, HC Brokerage.

1 This average per-capita consumption increased to reach 3.8 kg as an average of the period from 2000-2008. However, it still low compared to the per-capita average in the developed countries.


The annual market growth varies between the different paints types:

Estimated market growth (by volume) of Emulsion Paints is 14%, 5% for Synthetic Paints,

10% for Synthetic Varnishes , 15% Tinted Paints.

PACHIN is the paints market leader, whether we refer to production size, or sales volume

and value. KAPCI is the leader of export of paints and coatings; while Eagle is the leader for

exports of alkyd resins. The possible entry of additional international competitors forms a risk

to the industry. While we believe that the threat from imported paint is limited, several

international companies have set up operation in Egypt through subsidiaries and joint

ventures. As Egypt continues to raise its profile with international investors, additional

international paint companies could seek entry into the Egyptian paints market placing

pressure on margins, particularly if growth in the industry overall slows down.

I.4.7 Sales and Marketing strategies

The Marketing Strategies should cover the following aspects: What products to sell, who are

the target customers, the policies of Pricing, Advertising, Promotion, Sales and Distribution.

• The Decorative Paints market is divided into 3 segments: The Economic segment (10-

15%of the market), the Middle segment (70-80% of the market) & the Premium

segment (10-15% 0f the market). From marketing view, these products are

considered as “commodities” and the strategy of this category of products is

applicable to it.

• The Industrial Paints marketing is of Business-to-Business form, with a very wide

distribution network.

• Alkyd resins are either kept for own uses or sold to local& external customers.

The selected Strategy of each company depends on the following considerations:

1. Volume of customer segments.

2. Loyalty of the customers to the products

3. Degree of competition within the industry for the customer segment

Each Company develops its own estimates of what can be sold, to whom, when, in what

quantity & at what price.

Accordingly it takes its own decisions concerning Products Portfolio – Prices – Sales effort –

Distribution System – Geographic coverage – Expenditure level of advertising & promotions

I.4.8 Existing Support to paints, coatings and resins industry

The government support paints, coating and resins sector through several channels:


Institutional support:

Paints and Coating divisions in the Chemical and fertilizers Export Council and Chamber of

Chemical Industries are the two institutions that provide support to the paints and coating

sector in Egypt. This support includes provide support to members to participate in domestic

and international fairs with the cooperation of the Egyptian Exporters Association

(Expolink); prepare promotion missions and meetings outside Egypt; provide reports with up-

to-date data and statistics; support member companies to improve their competitiveness

positions and obtain ISO and similar certificates; vocational and management training; and

support establishing websites for the member companies and become members of the

international marketing and sales websites.

Capacity Building:

The Industrial Modernization Center (IMC) provides valuable support to building capacity of

the paints and coating sector through technical assistance and training programs.

I.5 Manufacturing Process of paints, Coatings and resins

Paints can be divided into two main types: The Decorative Paints (also called Architectural

Paints) & the Industrial Paints.

Architectural paints: are used for building and decorative purposes.

Industrial paints can be divided into eight categories, which includes automotive OEM

(Original Equipment Manufacturing) stoving paints, automotive refinishing (cellulosic and

polyurethane) paints, stoving (acrylic) electrostatic enamels, metalwork (alkyd-based) stoving

enamels, wood finishes, heavy duty paints, marine paints and general industrial paints.

Paints Raw Materials RM falls into four main categories: binders, pigments, solvents and

other materials (additives, fillers, driers …). Most of these raw materials are imported. Only

Carbonates, Talc and some solvents are locally manufactured, but most of the raw materials

are imported.

The manufacturing process is broadly similar for all types of paints. It comprises Mixing,

Milling (not for emulsion & some synthetic paints), Finishing & filling.

Alkyd Resins group is one of the raw materials needed for manufacturing synthetic

architectural paints & industrial paints. There are number of local manufacturers for the

Alkyd Resins. Other resins, such as acrylic latex for emulsion paints (local manufacturer for

acrylic emulsions exist) and most resins for industrial paints, are imported.


Manufacturing Alkyd Resins include an exothermic, reversible chemical reaction in which

fatty acid or vegetable oil; Phthalic Anhydride; and a polyol (e.g. Pentaerythritol/ glycerol)

are reacting to form a viscous materials (honey like) mass of alkyd resin.

• The produced paints should meet the National Standard Regulations for Paints

(1539/2008 – 1757/2008 – 793/2008)

• The rise in raw materials costs, rise in energy prices , the economic slowdown , Low

Volatile Organic Compounds VOCs requests , more strict environment regulations ,

new technologies (Nanotechnology,…) , energy saving needs , shift to Green chemistry

& the call for Green Products …. All these & other challenges face the industry & its

R&D activities.

More details about Paints Manufacturing are included in Annex B which is covering:

overview, raw materials, production process, quality assurance, product development, human

resources, legislative & environmental issues, international certificates, & international

developments

II. Data Collection/ Sources

II.1 Secondary Data

Sources of Data on exports are the Chemical and Fertilizers Export Council and the Data

Warehouse of GOEIC.

Source of data on production is Industrial Development Authority (IDA) and the study

interviews.

Source of data on investment is Chamber of Chemical Industries

Source of data on employment is Egypt State Information Service and Chamber of Chemical

industries.

Sources of data on foreign markets are EUROSTAT and ComTrade

II.1.1 Main producers of Paints and Coating by country

The following table shows the main Paints manufacturing companies in the main producing

countries:

Table II.1: Main paint producers by country.

COUNTRY Main Paints Producers

USA Sherwin-Williams , PPG , Du Pont , RPM , Valspar , 3M , H.B.Fuller , Masco , Rhom&Haas and Benjamin Moore.

Germany Henkel , BASF coatings , DAW & Brillux.

The Netherlands Akzo Nobel & Sigmakalon ,

Japan Kanasai , Nippon Paints , Dai Nippon Toryo , Chugoku Marine Paints & DIC


COUNTRY Main Paints Producers

Switzerland Sika & Forbo

Mexico Comex.

Norway Jotun

Denmark Hempel , Dyrup & Flugger

India Asian Paints & Berger

Finland Kemira

Australia Orica & Watty

South Africa Barloworld

South Korea KCC & DPI

Turkey Yasar

Brazil Renner

Jordan National

Portugal CIN

Austria Tigerwerk

Taiwan Yung Chi

Spain Titan

Italy Boero Group & Inver SpA

Thailand Toa Paints

Russia Empils , Russian Coatings

Source: Coatings World, 2008.

II.1.2 Egyptian Imports of Paints and Resins and their Raw Materials

During the last 6 years Egypt was importing significant amount of paints and resins to satisfy

the increasing demand of the construction and industrial sectors in Egypt. Meanwhile, Egypt

is practicing increased exports of paints and resins. Table II.2 presents the trend of imported

paints, resins and raw materials. From 2002-2006, the imports of paints and resins are

fluctuating but with an increasing rate. However, in 2006-2007 paints import does not follow

the same rate, it is constant, see chart II.1; this because of the increased production of paints

in Egypt in the last few years, which satisfied part of the local demand (import substitution)

and increased the paints exports (export promotion). Meanwhile, the imports of raw

materials are following the trends of paints and resins with rate of increase in the last 4 years

as a result of the current booming in the paints sector. The value of raw materials imports

was almost doubled from 2002 to 2007, i.e. it increased from US$109.2 million in 2002 to

reach US$206.2 million in 2007.


Table II.2: Imports of Paints, Resins and Raw Materials, 2002 - 2007

Years Paints Resins Total Imports of Paints

and Resins Total Imports of Raw

Materials

$ Million $ Million $ Million $ Million

2002 30.4 71.7 102.1 109.2

2003 27.2 68.6 95.8 93.6

2004 23.0 69.9 92.9 78.7

2005 35.0 102.6 137.6 138.9

2006 43.6 108.0 151.6 183.7

2007 43.6 135.2 178.8 206.2

Source: Calculated from the data of Egyptian Customs, Ministry of finance

Chart II.1: Imports of Paints and Resins, 2002-2007

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

2002 2003 2004 2005 2006 2007

Years

Millio

n U

S $

Paints

Resins

Total imports


The source of data on custom duties is the Presidential Decree No. 39/2007; “Customs Tariff

According to the Amendments of the Harmonized System 2007” and its amendment on 2

April 2008, Ministry of Finance, Arab Republic of Finance. These custom duties were

examined to find the effect of reduce or even eliminate some of them on the performance of

the sector and on the custom revenues. At this stage no change is required, however, after few

months when the status of the current international financial crisis becomes clearer, these

custom duties need another review to assess their impact on the sector.

A. Imported Products

Annex “F-1”presents the custom duties for imported paint and coating products. These

custom duties serve as a protection to domestic industry; its range is from 2% - 20%.

B. Imported Intermediate products

Annex “F-2”presents the custom duties for imported intermediate products. These custom

duties serve as a protection to domestic industry of intermediate products.

C. Imported Raw Materials

Annex “F-3”presents the custom duties for imported raw materials. These rates were

reviewed to assess their effectiveness.

Chart II.2: Imports of Raw Materials, 2002-2007

0.0

50.0

100.0

150.0

200.0

250.0

2002 2003 2004 2005 2006 2007

Year

US$ Million


II.1.3 Egyptian Exports of Paints and Coatings

According to the data from GOEIC and Chemical and Fertilizers Export Council, the major

exports markets for Egyptian paints and coatings are the Arab and African countries. Annex

“E” includes more detailed information about export values by HS 1992 Code and destination

regions.

A. Paints and Coating Exports by Region

The available data for three years (2005-2007) in table II.3 and Chart II.2 shows that the

value of Egyptian exports during this period were 65.8% to Arab Countries, 19.6% to Africa

(excluding Arab Countries), 4.7% to Europe, 1.7% to Asia (excluding Arab Countries), and

8.4% to other countries.

Table II.3: Paints and Coatings Exports (USD) by Region, 2005-2007.

Cumulative % % Total 3 Years 2007 2006 2005 Region

65.79% 65.79% 76,788,680 40,209,502 23,556,824 13,022,354 Arab Countries

85.39% 19.60% 22,876,144 11,949,080 8,353,641 2,573,424 Africa*

89.87% 4.48% 5,230,328 3,799,970 702,730 727,629 Europe

91.60% 1.73% 2,023,262 738,625 969,413 315,223 Asia*

100.00% 8.40% 9,800,927 4,374,842 3,804,523 1,621,562 Other Countries

100.00% 116,719,342 61,072,019 37,387,131 18,260,192 Total Exports

* Does not include Arab Countries. Source: General Organization for Export and Import Control (GOEIC)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

US $

2007 2006 2005

Years

Chart II.2: Exports of paints by Region

Other Countries

Asia

Europe

Africa

Arab Countries

Source: Table II.3


B. Paints and Coating Exports by HS Code

Table II.4 presents the value of paints and coatings exports (USD) by HS Code, 2005-2007.

The table shows that the highest values of exports are from HSC 3210 and 3208.

The table shows that HS Code 3210 represents 37.6%, 49.4%, and 63.1% of the value of total

exports in 2005, 2006, 2007 respectively, i.e. the value and ratio of its exports are increasing

in the last three years. HS Code 3208 represents 52.6%, 47.9%, and 35.4% of the value of

total exports in 2005, 2006, 2007 respectively, i.e. while the value of its exports is increasing,

its ratio to total annual exports is decreasing. HS Code 3214 represents 1.4%, 1.4%, 1.0% of

the value of total exports in 2005, 2006, and 2007, i.e. while the value of its exports is

increasing; its ratio to total annual exports is decreasing. The exports of HS Code 3209 are

decreasing and its ratio to annual exports is decreasing; it decreased from 8.4%, 1.3%, to

reach 0.05% of the value of total exports in 2005, 2006, 2007 respectively.

Table II.4: Paints and Coatings Exports (USD) by HS 1992 Code (product), 2005-2007

Year

3208 3209 3210 3214 Total Paints

$ million % $ million % $ million % $ million % $ million

2005 9.6 52.6% 1.5 8.4% 6.9 37.6% 0.3 1.4% 18.3

2006 17.9 47.9% 0.5 1.3% 18.5 49.4% 0.5 1.4% 37.4

2007 21.6 35.4% 0.3 0.5% 38.5 63.1% 0.6 1.0% 61.1

Source: General Organization for Export and Import Control (GOEIC)

B. Resins Exports

Table II.5 presents the value of alkyd resins (HS Code 390750) exports (USD) by region. It

shows that the majority of its exports allocated to African Countries (45.9% of total exports

of Alkyd resins) and Arab Countries (45.6% of total exports of Alkyd resins); i.e. 91.5% of

Alkyd Resin exports is allocated to African and Arab Countries as a total of 2005-2007.

Exports of Alkyd Resins to Asian and European Countries presented only 4.8% and 3.1%,

respectively.

Table II.5: Alkyd Resins (HSC 390750) Exports (USD) by Region, 2005-2007.

Cumulative % %

Total 3 Years 2007 2006 2005 Region

45.60% 45.60% 13,993,921 8,459,240 4,588,051 946,630 Arab Countries

91.47% 45.87% 14,074,850 9,177,702 4,314,792 582,355 Africa

99.33% 4.75% 1,458,139 770,233 623,381 64,525 Asia

94.58% 3.11% 953,050 447,432 300,629 204,990 Europe

100.00% 0.67% 206,537 206,537 0 0 Other Countries

100.00% 30,686,497 19,061,144 9,826,853 1,798,500 Total Exports

Source: Calculated from the data of General Organization for Export and Import Control (GOEIC)


The following table represents Egypt’s exports of all resins (including alkyd resins) by HS

Code. It showed that HS Code 3907 has the largest value of resins exports (because of alkyd

resins). HS Code 3907 represents 36.9%, 67.9% and 85.7% of total resins exports in 2005,

2006, and 2007, respectively. Exports of HS Code 3905 represent 20.7%, 21.5%, and 9.8%

respectively. The exports of the other HS Codes (3903, 3906 and 3908) are very minor

compared to the exports of HS Code 3907.

Table II.6: Resins Exports (USD) by HS 1992 Code

Year

3903 3905 3906 3907 3908 Total Resins

$ million %

$ million %

$ million %

$ million %

$ million % $ million

2005 1.8 31.3% 1.2 20.7% 0.3 5.9% 2.1 36.9% 0.3 5.2% 5.8

2006 0.8 5.0% 3.2 21.5% 0.8 5.4% 10.2 67.9% 0.0 0.2% 15.0

2007 0.8 3.6% 2.2 9.8% 0.2 0.7% 19.2 85.7% 0.0 0.1% 22.4 Source: Calculated from the data of General Organization for Export and Import Control (GOEIC)

II.2 SWOT Data (Stakeholders)

II.2.1 Who are the Stakeholders?

The Approved list of Stakeholders includes:

1) Manufacturer (Paints, Coating & Resins)

2) Local Supplier of Raw Material (Carbonate, Talc, Resins & Acrylic Emulsion)

3) Solvent Suppliers (ول�� ( ا�� ا�� ا��

4) Paints &Coating Wholesalers

5) Agents of International Supplier (of main raw material)

6) Industrial Modernization Center (IMC)

7) Federation of Egyptian Industries- Chemical Industries Chamber-Paints Section

8) Egyptian Organization for Standardization "EOS"

9) Egyptian Environmental Affairs Agency "EEAA"

10) Chemistry Authority

11) Professional Painters, Labors ,Consumers(Indirect Beneficiaries)

12) Service Providers (Shipping lines, clearing agents)

13) Custom Authority, Tax Authority

14) Foreign importers

15) Export Import Control Authority

16) Industrial Development Authority (IDA)

17) Local Exporters

18) Export Council


II.2.2 Paint and Coating Exporters’ Population and Sample Size:

The general objective of the study aims mainly at promoting exports at sector level and the

specific objectives are to carry out: 1) an export support study for painting and coating

industry and 2) a simple industrial profile model with expected economic indicators for a

medium scale project for producing two types of paints and a type of resins. This means that

the export sector is the targeted sector; however this does not mean that the study ignored the

domestic market. It is important to say that the domestic market is the backbone of the

foreign markets and it should be developed to complement the foreign trade and to be a

safeguard if any problems occurred in the foreign markets.

According to the general and specific objectives of the study, the paints and coating export

sector is the targeted population. According to the unpublished data of the General

Organization of Export and Import Control (GOEIC) – “presented in tables II.7, II.8 and

II.9;” during the last three years (2005-2007) the number of exporters were 388 (100%)

companies of which 152 companies (39% of total exporters) exported $5,000 or more per

year, i.e. $15,000 in the three years. The total value of exports of these companies in the three

years is $147.92 million (99.5% of value of total paint and coating exports). On the other

hand, 236 companies (61% of total exporters) exported less than $5,000 per year; the value of

exports of these companies, as a total of the three years, is only $669,845 (0.5% of value of

total paint and coating exports), which is very negligible amount. The companies in this

category are not regular exporters, but they are ad-hoc exporters (in and out).

The study depends on the direct interview with the key players of the sector and three sources

of secondary data: 1) statistics from reliable sources; 2) information from previous studies

and reports; and 3) information on international markets from reliable websites.

The paints and coating stakeholders are exporters, producers of final products and raw

materials, domestic market actors, public sector and government agencies. The data was

collected using SWOT checklists and questionnaires to obtain information from each of the

stakeholders’ category.

The secondary data was collected for Egyptian paint and coating exports and imports of final

products and intermediate products, production, and custom duties on imports of final and

intermediate products and raw materials. Also, it included data collected on major and

potential foreign markets such as Europe, Africa, Asia, Arab Countries and other regions.

[Note: the Arab countries are extracted from the Asian and African regions because of their

unique situation to Egyptian markets.]


Table II.7: The weight of the excluded exporters that export Less than US$5,000 per year

Annual Exports Total Exports

(3 years, 2005-2007) Annual exports # of Companies

$5,000 or more 147,922,263 99.5% 49,307,421 99.5% 152 39%

Less than $5,000 669,845 0.5% 223,282 0.5% 236 61%

All Exporters 148,592,108 100.0% 49,530,703 100.0% 388 100%

Source: Calculated from data of General Organization for Export and Import Control (GOEIC), unpublished data.

Tables II.8 and II.9 present the structure of the sample and its relation to the export sector

population. In table II.8, the population of export sector is considered as 152 exporters that

exported 99.5% of total exports in the last three years (2005-2007). Three exporters exported

$95.94 million (65% of the total value of exports); seven exporters exported $22.95 million

(15% of the total value of exports); eleven exporters exported $14.5 million (10% of total

value of exports); and the remaining 128 exporters exported $14.6 million (10% of total value

of exports).

Table II.9 shows the percentage of the study sample of the above mentioned population. The

study interviewed 3 companies out of the 3 companies that exported 65% of the value of

exports; 2 companies out of the 7 companies that exported 28%; and 5 companies out of the

11 companies that exported 10%, and 6 companies out of 128 companies that exported the

last 10% in 2005-2007. As a total sample the study team interviewed 16 companies (11%)

out of the total 149 companies. The interviewed companies exported 74% of the total exports

in the last 3 years.

Table II.8: Paints and Coating Exports, in Million US$ (2005-2007)*

Sample ($ million) Population ($ million) Category (% of total

Exports)

Average Annual

Exports per Company

# of Companies

***

Annual Exports

Total Exports

(3 years)

Average Annual

Exports per Company

# of Companies

**

Annual Exports

Total Exports

(3 years)

10.66 3 31.98 95.94 10.66 3 31.98 95.94 65%

1.09 2 2.17 6.52 1.09 7 7.65 22.95 15%

0.44 5 2.21 6.64 0.44 11 4.82 14.46 10%

0.05 6 0.33 0.98 0.04 128 4.86 14.58 10%

2.29 16 36.69 110.08 0.33 149 49.31 147.92 100%

* The data reflects the companies who export $5,000 or more per year through, 2005-2007. ** Total registered exporters are 388 companies, of which 149 are exporting $5,000 or more annually (They are 152 companies but 3 companies were repeated under different tax number and we had to merge them). *** The sample size is 22; it includes the above mentioned 16 companies and other 4 paint and coating producers (non-exporters) and 2 raw materials producers. Source: General Organization for Export and Import Control (GOEIC), unpublished data.


Table II.9: The weight of the sample (%) to total population (Exports and Exporters)

Source: Table II.8.

III. Analysis

III.1 Paints and Resins Exports

World Paints and Resins Exports:

According to the ComTrade data for 2007, the world total export of paints and resins is

US$4.81 billion. In 2007, Malaysia is the highest export; its exports reached US$1.57 billion

and Mexico exports reached US$1.34 billion. Value of exports for Malaysia represents about

32.6% and Mexico represents about 27.9%, i.e. the value of exports for the two countries

forms about 60.5%% of total World exports and all other countries (about 52 countries)

represent only 39.5%.

Table III.1: Exports of paints and resins, 2007

Country $ %

Malaysia 1,566,697,212 32.6%

Mexico 1,341,855,492 27.9%

Other Countries 1,901,015,847 39.5%

World 4,809,568,551 100.0%

Source: ComTrade

Egypt Paints and Resins exports

The Data warehouse of the General Organization for Export and Import Control (GOEIC) is

the most reliable data source for Egyptian exports. It was used as a source of data to perform

the Egyptian export analysis.

Egypt Paints Exports:

The following table includes the actual (2005-2007) and expected (2008-2013) exports of

paints by HSC. The expected exports were estimated using the export data of GOEIC. The

strong competition of neighbor countries such as Tunisia, Greece, and Turkey and China is a

threat to the Egyptian paints exports and the whole industry as whole. The growth without

Total Exports Annual Exports

# of Companies

65% 100% 100% 100%

15% 28% 28% 29%

10% 46% 46% 45%

10% 7% 7% 5%

100% 74% 74% 11%

Sample size ofCategory (% of

Total Exports)


support is expected to be low because of these threats. The following table represents the

expected exports without support in the coming 5 years.

Table III.2: Actual (2005-2007) & Expected Exports of paints (2008-2013) without support ($ Million)

Year Paints Exports by HS 1992 Code

Total Without Support HSC 3208 HSC 3209 HSC 3210 HSC 3214

2005 9.60 1.54 6.86 0.25 18.26

2006 17.92 0.48 18.47 0.51 37.39

2007 21.60 0.32 38.52 0.62 61.07

2008 21.03 0.08 54.11 0.44 75.66

2009 21.89 0.09 57.84 0.45 78.08

2010 22.78 0.09 61.83 0.47 80.58

2011 23.71 0.09 66.10 0.49 83.15

2012 24.68 0.09 70.66 0.50 85.81

2013 25.69 0.09 75.53 0.52 88.56 Source: Economic Analysis of the Study.

Egypt Resins Exports:

The following table includes the actual (2005-2007) and expected (2008-2013) exports of

resins by HSC. The expected exports were estimated using the export data of GOEIC. Also,

the situation of resins exports is similar to paints exports, except that resin exports are much

lower than paints exports. The strong competition of neighbor countries such as Tunisia,

Jordan, and turkey is a threat to the Egyptian resins exports. The growth without support is

expected to be low because of these threats. The following table represents the expected

exports without support in the coming 5 years.

Table III.3: Exports of resins by HS Code without support (US$ Million)

Year Resins Exports by HS 1992 Code

Total Without Support HSC 3903 HSC 3905 HSC 3906 HSC 3907 HSC 3908

2005 1.80 1.20 0.34 2.13 0.30 5.76

2006 0.75 3.22 0.81 10.19 0.04 15.01

2007 0.81 2.20 0.16 19.19 0.03 22.39

2008 0.16 0.89 0.01 24.62 0.02 25.69

2009 0.16 0.92 0.01 25.70 0.02 26.80

2010 0.16 0.94 0.01 26.83 0.02 27.96

2011 0.17 0.97 0.01 28.01 0.02 29.17

2012 0.17 0.99 0.01 29.24 0.02 30.43

2013 0.18 1.02 0.01 30.53 0.02 31.75 Source: Economic Analysis of the Study.

III.2 EU Demand on Paints and Coating products

The EU market should be the potential market for Egyptian paints and coating products. The

analysis of the EU demand is being done using the HS codes for paints and coating products;


the original products are 3208: 10/20/90 (solvent based paints) and 3907: 50/99 (Alkyd

resins).

Table III.4: Expected reduction in EU paints and resins production in the next 5 years (Euro million)

Year

Expected reduction in EU production due to VOC Regulation (Euro million)

Expected reduction in EU production

(Euro million) Grand Total (Euro

million)

HS Code Total

reduction HS Code

Total reduction

320820 320810 320890 3208 390750 390799 3907

2008 0.39 0.00 0.00 0.39 0.00 0.00 0.00 0.39

2009 0.81 0.62 1.01 2.44 0.61 0.71 1.33 3.77

2010 1.25 1.26 2.12 4.63 1.86 1.42 3.28 7.91

2011 1.29 1.93 3.32 6.54 3.12 1.42 4.54 11.08

2012 1.33 1.96 3.47 6.77 3.14 1.42 4.56 11.33

2013 1.38 1.99 3.63 7.00 3.16 1.42 4.58 11.58 Source: Economic Analysis of the Study (estimated using EuroStat data)

The grand total figures form the expected total reduction in the value of mentioned HSC

products by EU in the next 5 years. These values expected to be available for all exporters

around the World. If Egypt exports about 10%- 30% annually of these values this will be

good achievement.

III.3 Expected EU and Non-EU Exports of Paints and Coatings

The EU market should be the targeted market to examine the sustainability the Egyptian

paints and coating standards. If Egypt sustains its exports to the EU markets, then its exports

to other regions can be sustained. Existing demand by other countries is being analyzed in

the light of their levels of production, exports and imports of paints and coating. Meanwhile,

Egypt’s exports to Arab countries and Africa are very promising, but the high competition

due to the export subsidies by competitor countries is a major threat to Egyptian exports.


Table III.5: Actual (2005-2007) and Expected (2008-2013) EU and Non-EU Exports of Paints and Coatings (US$ million) by Region (without support)

Year Africa* Europe Asia* Arab

Countries Other

Countries Total without

support

2005 2.57 0.73 0.32 13.02 1.62 18.26

2006 8.35 0.70 0.97 23.56 3.80 37.39

2007 11.95 3.80 0.74 40.21 4.37 61.07

2008 17.58 5.61 0.91 45.94 5.61 75.66

2009 18.62 5.95 0.94 46.76 5.81 78.08

2010 19.71 6.30 0.97 47.59 6.01 80.58

2011 20.85 6.67 0.99 48.42 6.22 83.15

2012 22.05 7.06 1.02 49.26 6.43 85.81

2013 23.30 7.46 1.05 50.10 6.65 88.56

* Does not include Arab Countries Source: Economic Analysis of the Study.

III.4 Expected Demand on Egyptian Paints and Coating to international

markets

The following table presents the situation with the government support. The support will

help the sector in covering its costs and attract new investments to be utilized. This will have

social impact by creating new jobs.

The exports to Arab countries will increase from $40.21 million in 2007 to $71.94 million in

2013. Also, the exports to Africa will increase from $11.95 million in 2007 to $67.95 million

in 2013. The total exports will increase from $61.07 million in 2007 to $176.91 million in

2013.

Table III.6: Expected increase in Egyptian paints Exports with Support (US$ million) by Region

Year Africa* Europe Asia* Arab

Countries Other

Countries Total with

support

2005 2.57 0.73 0.32 13.02 1.62 18.26

2006 8.35 0.70 0.97 23.56 3.80 37.39

2007 11.95 3.80 0.74 40.21 4.37 61.07

2008 17.58 5.61 0.91 45.94 5.61 75.66

2009 23.52 7.53 1.07 50.63 6.74 89.48

2010 31.11 10.00 1.24 55.57 8.04 105.95

2011 40.74 13.13 1.43 60.76 9.52 125.57

2012 52.84 17.07 1.64 66.22 11.21 148.98

2013 67.95 22.02 1.87 71.94 13.13 176.91

* does not include Arab countries. Source: Economic Analysis of the Study.

The following table presents the paints exports by HS 1992 codes. HSC 3210 comprise the

majority of Egyptian exports; it will increase from US$38.52 million in 2007 to US$138.61

million in 2013. HSC 3208 will increase from US$21.60 million in 2007 to US$37.46

million in 2013.


Table III.7: Exports of Paints by HS Code with support (US$ Million) Year HSC 3208 HSC 3209 HSC 3210 HSC 3214 Total With Support

2005 9.60 1.54 6.86 0.25 18.26

2006 17.92 0.48 18.47 0.51 37.39

2007 21.60 0.32 38.52 0.62 61.07

2008 21.03 0.08 54.11 0.44 75.66

2009 23.60 0.09 65.31 0.48 89.48

2010 26.49 0.10 78.82 0.54 105.95

2011 29.74 0.10 95.14 0.59 125.57

2012 33.38 0.11 114.84 0.66 148.98

2013 37.46 0.11 138.61 0.73 176.91 Source: Economic Analysis of the Study.

The following table presents the resins exports by HS 1992 codes. HSC 3907 (Alkyd resins)

comprise the majority of Egyptian exports; it will increase from US$19.19 million in 2007 to

US$45.74 million in 2013. The exports of acrylic resins are still minor compared to the

acrylic resins.

Table III.8: Exports of Resins by HS Code with support (US$ Million) Year HSC 3903 HSC 3905 HSC 3906 HSC 3907 HSC 3908 Total With Support

2005 1.80 1.20 0.34 2.13 0.30 5.76

2006 0.75 3.22 0.81 10.19 0.04 15.01

2007 0.81 2.20 0.16 19.19 0.03 22.39

2008 0.16 0.89 0.01 24.62 0.02 25.69

2009 0.17 0.96 0.01 27.87 0.02 29.02

2010 0.18 1.04 0.01 31.54 0.02 32.79

2011 0.19 1.12 0.01 35.70 0.02 37.05

2012 0.21 1.21 0.01 40.41 0.02 41.87

2013 0.22 1.31 0.01 45.74 0.02 47.32 Source: Economic Analysis of the Study.

III.5 SWOT Analysis

SWOT analysis approach was used in performing all of the meetings/ interviews with the

stakeholders of the paints and coatings sector. SWOT acronym stands for strength, weakness,

opportunities, and threats facing the sector. In this case, SWOTs are:

Strengths: attributes of the organizations that are helpful to achieving the objectives of the sector

Weaknesses: attributes of the organizations that are harmful to achieving the objectives of the

sector

Opportunities: external conditions those are helpful to achieving the objectives of the sector

Threats: external conditions those are harmful to achieving the objectives of the sector.

III.5.1 Private Sector Stakeholders:

Private sector stakeholders include paints and coatings producers and exporters and raw

materials producers. Also, general information was gathered from painters to assess the local

market.


Table III.9: Summary of the Producers and Exporters SWOT findings in the paints and coating sector in Egypt Internal Factors External factors

Strengths Weaknesses Opportunities Threats - Paints and Coating business is an old and

promising industry in Egypt - Sales have grown steadily by 4% from 2003 to

2006 - New tax law improved the sector performance - Adopting with the environmental standards is

doable - Egyptian paints and coating products have an

excellent reputation - Paints and coatings do not need large

investments; it needs know-how to improve products.

- Local inputs represent in average 59.5% of cost of exported products. Local inputs are know-how, raw materials, packing, and labor cost.

- wide product range - Computerized system for logistics - Large companies have good marketing

systems: 1) local market: business to business in car and wood and distribution network in construction paints. 2) foreign markets: distributors, agents, or branches in country. However, abroad branches are very expensive.

- Limited number of skilled professionals and technicians;

- Lack of written reports. - Some bureaucratic issues

still in some of the tax organization.

- Informal producers are penetrating the industry due to ease of production of low quality products.

- Low quality/ low price products dominate domestic markets especially in poor areas.

- Painters who do not have good experience distort paints domestic markets in most cases by directing customers to inappropriate products.

- Wide range of improper products within the sector is not good for the whole sector.

- High cost of R&D reduces opportunities in improving/ producing new products.

- High health risk for the labors in the sector.

- Storage of bulky products is very expensive and can be a weakness in some cases.

- High cost of customer services and technical support.

- High potentiality in increasing Egyptian exports to penetrate new markets and replace the reduction in European production in some paints and coating products

- Demand on paints and coating is booming in the international markets

- Commercial attaches are good resources for export promotion, if they have promotion experience.

- Price and quality of Toluene in domestic markets are good.

- Car factories are penetrating African countries such as Libya, Kenya, Senegal and Sudan. This will increase demand on OEM paints.

- Improve paints and coatings’ product up to the standards is a must for sustainable export markets.

- Taxing exported materials and intermediate products and subsidizing exported final products will have positive effect on exports and the whole sector. Some countries implement this policy to protect their national industries.

- Egypt can expand the production of paints and coatings due to low wages. This reduces the cost of production and increase competitiveness.

- Water based Car Varnishes is a potential product; however, water based prices are about 20% higher

- Increasing demand on Emulsions world wide

- Powder coatings is better on an environmental basis

- Loosing international markets if the sector does not adjust itself to the new standards, such as REACH. All companies should be ready for any new certificate.

- Commercial attaches sometimes are not experienced enough to do promotion job.

- Price of nitrocellulose in the local market is higher than the imported one and is lower quality.

- Most of domestic raw materials are not up to the standards (i.e., are not certified under a quality standards system) this affects the exports to developed countries.

- The continuing increase in raw materials’ prices, especially petrochemical products will affect negatively the sector.

- How and when the African Countries will react to the quality standards certifications.

- Retroactive implementation of some governmental decrees (raw materials and energy) is very discouraging because the companies sign contracts before delivering their products and cannot apply the price increase on the signed contracts. Laws should be applied gradually.

- Obtain reports and certificates analysis is an issue with the Chemical Authority. High cost of analysis and delay of receiving certificates have negative impact on exports.

- Commercial law does not support credit sales. In the past the check used to be the instrument; now, there is no good instrument.

- Individualism of Egyptian business reduces the opportunities of team building approach. Also, the one-man-show behavior is another problem that affects negatively the implementation of


Internal Factors External factors Strengths Weaknesses Opportunities Threats

- Lack of safety and fire fighting standards.

- REACH1 is strong opportunity for improving paints and coating production. However, REACH is very expensive “Euro 30,000 for each product.”

- Some countries such as China are decreasing the subsidy on raw materials and the sector as a whole.

- Factoring guarantees debt collection (Factoring Egypt Credit). It increases the payback of loans and improves cash flow.

the delegation of authority approach. - High regional competition from neighboring

countries (Jordon, Tunisia, Libya, etc who subsidize their exports of paints and coatings.

- Reduction on Alkyds’ demand in the long run. - Increase in transportation costs and freight. - Powder coating may affect industrial paints

markets. - Lengthy procedures of Customs caused lots of

losses to the Company. - License procedures are very lengthy and

complicated - Drawback scheme is an obstacle in some cases. - Low quality of local packaging containers

(metal or plastic). - Market instability - The education system is not replying to the

demand of the business. The qualification of the graduates is inferior to the needs.

1 REACH is the new Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals. It entered into force on 1st June 2007. It streamlines and improves the former legislative framework on chemicals of the European Union (EU).

The main aims of REACH are to improve the protection of human health and the environment from the risks that can be posed by chemicals, the promotion of alternative test methods, the free circulation of substances on the internal market and enhancing competitiveness and innovation.

REACH makes industry responsible for assessing and managing the risks posed by chemicals and providing appropriate safety information to their users. In parallel, the European Union can take additional measures on highly dangerous substances, where there is a need for complementing action at EU level.


Table III.10: Summary of the Packing Materials SWOT findings in the paints and coating sector in Egypt

Internal Factors External factors

Strengths Weaknesses Opportunities Threats

- Some factories have imported machines and equipments in good quality

- Awareness of ISO and certification is in process

- Some companies have computerized systems to control logistics of raw materials and recycling of industrial waste

- No availability of steel due to the shortage of iron

- Lack of qualified workers - Unexpected and sudden changes in RM

prices - High increase in power costs - The manual method of cutting the steel

sheets in some backing factories is a handicap for the development of the industry.

- Low salaries and long working hours for labor

- packaging sector needs restructuring - Lack of storage area - Small and medium companies cannot

cope with ISO standards

- High export potentials to neighbor countries

- Establish and institute for packing and packaging to improve the labor skills

- Custom duties on template are high - Custom employees do not know the nature of our industry and ask strange

questions - Raw materials take three days to be cleared by custom, it can be reduced to less

than a day as Dubai (for example) - There is no standardization for paints and coating filling cans. - If there is a problem with packing materials it goes back to the paints and coatings

company not the packing company! - - Raw materials Prices & its availability are big risks for the continuity of the

business. - It already caused erosions in profit margins - Decrease in Alkyd consumption (due to the shift into Emulsion & low VOC

products) - High increase of imported Raw material Prices (Price fluctuations) - Increase in raw materials prices especially solvents. Government is monopsonist

(sole producer and seller). The government does not communicate with stakeholders before taking major decisions

- Low quality of local packaging containers (metal or plastic) - Foreign investors in the paints & alkyd resin business - The priority of the MENA region for the suppliers of raw materials was

deteriorated. The 1st.priority is given to China & India due to their huge consumption. The suppliers now offer higher prices in MENA region.


Table III.11: Summary of the Painters SWOT findings in the paints and coating sector in Egypt

Internal Factors External factors

Strengths Weaknesses Opportunities Threats

- Experienced people can identify the different grades and quality of paints.

- There is a Syndicate for Technicians; painters are part of this syndicate. It provides health and pension insurances.

- Some large companies have unique trade marks hard to be copied or mimicked.

- Cheap paints are demanded by low income groups

- Some large companies trained painters and painter’s assistants and let them work in the local market. The painter put the name of this company on his workshop and the company provides his shop with its products. This had high positive impact on the sector.

- The Contractor prefers to supply larger number of painters. Most of the time he hire one or two qualified painters and five or six young men who do not have any knowledge about paining

- Any person can impose himself to this job without any experience.

- Most of painters don know any thing about the Syndicate for Technicians.

- Some painters mix fake paints and original ones to gain from the price difference but this cause bad impact on the sector.

- It is suggested that no one should work as a painter unless he has a license as a painter.

- The exam of painters must be done by old and experienced painters. Two licenses should be provided: a. Painter license and b. Painter Assistant.

- Legal/ large factories have to improve their trade marks and make them hard to be mimicked.

- Painters can work part time with large companies; but they should have the opportunity to move between companies and private contracts

- Some painters use 2nd or 3rd grades of paints instead of 1st grade. These grades are demanded for outside painting and shanty-town buildings. If these grades are used in higher quality buildings it cases bad results.

- Dishonesty is the cause of bad results - Illegal factories are very harmful for the

sector - Painters do not like to work as permanent

employee with a company because there is no guarantee that he will continue.

- Fake raw materials have bad effect on the sector; fake zinc is a popular example.


III.5.2 Public Sector and Government Stakeholders

The team of experts analyzed the gathered information from the Egyptian Organization for

Standardization and Quality (E.O.S.), Ministry of Trade and Industry (MTI); Egyptian

Petrochemicals Holding Co.; Egyptian Environmental Affairs Agency, Ministry of State for

Environmental Affairs; Egyptian Customs, Ministry of Finance; General Organization for

Export and Import Control (GOEIC); and Industrial Development Authority, Ministry of

Trade and Industry.

The following table includes major Strengths, Weaknesses, Opportunities, and Threats that

facing the paints and coatings sector while dealing with other stakeholders such as

PARASTATAL organizations, public sector and government. This analysis is an assessment

of the effect of these organizations on the paints and coatings industry.

Table III.12: SWOT Analysis of the effect of other stakeholders on the sector

Strengths

- Good understanding of environmental aspects

- Low cost of domestic inputs

- Efficient R&D in large companies

- Paints industry is very old in Egypt; there are very efficient technicians (but limited number of them)

- The sector has good number of entrepreneurs; they need to work together to resolve the sector problems.

Weaknesses

- High demand on petrochemical products, the import process and procedures of these products need to be simplified.

- Lack of reliable information

- Fragmented sector

- highly depends on specific imported raw materials

- Focus on domestic markets (3 companies export 65% of total value of exports)

- Unskilled painters who have negative effect on the sector

Opportunities

- Utilization of IMC, Export Council and similar organizations to enhance the performance of the sector.

- The current reforms in standardization, custom, environment, and Tax Authorities have positive results on the sector. This should be utilized by the producers and exporters

- Provide reliable information to the data collection authorities, this will have positive impact on the sector

- Reduction in specific paints and coatings products in EU Countries.

- Utilization of available bilateral agreements

- REACH is strong opportunity for improving paints and coating products to be environmental friendly.

Threats

- Retroactive implementation of some Government decrees

- Absence of strong entities to improve the performance of painters and labor

- Export subsidy by competitor countries

- REACH is very expensive “Euro 30,000 for each product.”

- Subsidized petrochemical products in some Oil Arab Countries

- Although the current custom and tax duties are suitable for paints exports and imports, they may be reviewed in the near future as a result of the current international financial crisis.

IV. Results and Findings

IV.1 A Plan to overcome the weakness and threats that face the product

The study concluded that the paints and coatings sector is a scattered sector, i.e., most of the

key players are working independently and depend on the existing government, public sector,


and PARASTATAL institutions. The PARASTATAL institutions are supervised directly by

the government; however, it is important to state that the PARASTATAL institutions playing

an important role in the transition period to ease the communication between private sector

and government and to strengthen the government/ private sector partnership.

The need for an association for the sector is very important to give the sector the chance to

communicate as one entity with other organizations through the existing institutions and

directly; depends on the situation. The importance of creating this association is to have the

sector feel ownership on this association. In the beginning it can be used to share information

between the individual companies and provide support to the weak links in value chain of the

sector such as painters and packaging materials. After the interviews and meetings within the

sector, we can conclude that there are very ambitious individuals within the sector who can

lead this effort.

The following two tables provide the weaknesses within the sector and the threats facing the

sector, how to mitigate them, and who should do them.

Table IV. 1.1: Mitigating the Weaknesses within the Sector

Weaknesses Recommended mitigations Who will do it

- Limited number of skilled professionals and technicians;

There is a need for more training programs to improve their skills.

The sector through an association that generates funds to sustain this task. Currently, Technical and Vocational Educational Training program (TVET) is implementing a vocational training. (EU funded program)

- Lack of written reports. It is important to implement training on technical report writing.

- Some bureaucratic issues still in some of the tax organization.

More attention to the employees who implement the tax law will resolve this issue.

Tax Department

- Paints and coatings do not need large investment; this attract adventurers who have no experience in penetrating the business and produce low quality products

n/a

- Low quality/ low price products dominate domestic markets especially in poor areas.

n/a

- Painters who do not have good experience distort paints domestic markets in most cases by directing customers to inappropriate products.

More training for painters is a must. Some companies did comprehensive trainings to painters and provided them with financial support but in an individual company bases (not as a sector solution).

The proposed association can play an important role in this issue because improving the local market is very important to the export sector.


Weaknesses Recommended mitigations Who will do it

- High variation in quality of products within the sector is not good for the whole sector.

This can be mitigated by a well established association to harmonize the members of the sector.

The formulation of such association needs ambitious entrepreneurs who can make changes in the sector.

- High cost of R&D reduces opportunities in improving/ producing new products.

- The producers can arrange for bringing experts at lower costs.

The proposed association and/or IMC can provide support in this regards.

- High health risk for the labors in the sector.

Emphasize the occupational of safety and Health concepts.

All sector organizations

- Storage of bulky products is very expensive and can be a weakness in some cases.

Good planning using effective supply chain system

Producers

- High cost of customer services and technical support.

Improve the competitiveness of the sector producers

- Lack of safety and fire fighting standards

Emphasize the occupational of safety standards

All sector organizations

Table IV.1. 2: Mitigating the threats facing the Sector

Threats Recommended mitigations Who will do it

- Loosing international markets if the sector does not adjust itself to the new standards, such as REACH.

All companies should be ready for any new certificate. This needs institutional and financial support.

Government support is highly recommended

- Illegal sector (fraud products) in refill containers for famous companies with low quality products.

More enforcement of existing laws should be done in the domestic market.

Regulatory authorities

- Commercial attaches sometimes are not experienced enough to do promotion job.

More awareness of commercial attaches to support export activities

Ministry of Trade and Industry

- Price of nitrocellulose in the local market is higher than the imported one and is lower quality.

Simplify the importing procedures Ministry of Trade and Industry

- Most of domestic raw materials are not up to the standards (i.e., are not certified under a quality standards system) this affects the exports to developed countries.

Establishing standards for domestic raw materials

Quality Control Authority

- The continuing increase in raw materials’ prices, especially petrochemical products will affect negatively the sector.

Adjust the formulation of the paints and coating to reduce petrochemical inputs.

R&D

- How far the African Countries from REACH certification.

Egyptian producers must be ready for the REACH standards. This needs

The government and all other organizations of the sector



institutional and financial support.

- Retroactive implementation of some governmental decrees (raw materials and energy) is very discouraging because the companies sign contracts before delivering their products and cannot apply the price increase on the signed contracts.

Laws should be applied gradually. This can be reached through good communication by private/ government partnership.

The government should consult with private sector before issuing such an effective decision.

- Obtain reports and certificates analysis is an issue with the Chemical Authority. High cost of analysis and delay of receiving certificates have negative impact on exports.

More attention to export related procedures

Chemical Authority

- Commercial law does not support credit sales. In the past the check used to be the instrument; now, there is no good instrument.

More awareness on the commercial law.

Government

- Individualism of Egyptian business reduces the opportunities of team building approach. Also, the one-man-show behavior is another problem that affects negatively the implementation of the delegation of authority approach.

It is a cultural issue. This needs long term development at the national level; not at the sectoral level.

It is an issue should be treated at the national level for all sectors.

- High regional competition from other countries (China, Turkey, etc) who subsidize their exports of paints and coatings.

More support to the exporters to compensate such market distortion.

The Government institutional and financial support

- Reduction on Alkyds’ demand Implement new technologies to produce competent products

Producers

- Increase in transportation costs and freight. Export support Government financial support

- Powder coating will affect paints markets. Implement new technologies to produce competent products

Producers

- Lengthy procedures of Customs caused lots of losses to the Company.

Revisit the procedure for simplification Custom Authorities

- License procedures are very lengthy and complicated

Revisit the procedure for simplification Industrial Development Authority

- Drawback scheme is an obstacle in some cases.

Revisit the procedure for simplification Custom Authorities

- Low quality of local filling containers (metal or plastic).

This is very weak part of the sector. It needs government support and producers cooperation to develop the whole packaging materials industry.

Exporters and producers through a powerful association with the government support.



- The education system is not replying to the demand of the business. The qualification of the graduates is inferior to the needs.

This is a common problem in all the sectors in Egypt

The government at the national level.

IV.2 Expected exports after export support

The following chart and tables include the results of the analysis of the actual exports and the

expected levels of exports with and without support.

The proposed support is 12% to 5% of the value of exports for the specified HS Codes, as

follows: 12% for first and second years, 10% for the third and fourth years, and 5% for the

fifth year. The total cost of support is US$77.43 million and total returns of support will be

US$123 million for the five years, i.e. the increase in paints and resin exports is from $101

million in 2008 to $224 million in 2013.

Chart IV-1: Exports of Paints and resins from 2007-2013

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

2007 2008 2009 2010 2011 2012 2013

Year

US$ Million

Actual paints exports Paints exports without support Paints exports with support

Actual resin exports Resin exports without support Resins exports with support


Table IV.2: Actual (2005-2007) and Expected Exports (2008-2013) of paints and resins

Year

Total Paints and Resins Exports Impact of

Support

Annual Increase in

Exports

Proposed Support

Without Support

With support % US$ million

US$ million US$ million US$ million US$ million

2005 24.02

2006 52.40 28.38

2007 83.46 31.06

2008 101.35 101.35 0.00 17.89

2009 104.80 118.51 13.71 17.16 12% 14.22

2010 108.36 138.74 30.38 20.23 12% 16.65

2011 112.05 162.62 50.57 23.88 10% 16.26

2012 115.87 190.85 74.98 28.22 10% 19.08

2013 119.82 224.23 104.41 33.38 5% 11.21

Total Returns of Support 122.88 Cost of Support 77.43

Source: 2005-2007 represent actual data from GOEIC. 2008 is an extrapolation using the available data of the three quarters of the year. 2009-2013 estimated from the Economic Analysis of the Study.

The proposed support program expects significant decrease in paints and resin imports. The

following table includes the expected increase in exports and expected decrease in imports.

This will reduce the gap between exports and imports and change the trade balance for paints

and resins from negative to positive in 2010.

Table IV.3: Actual (2005-2007) and Expected (2008-2013) Exports of Paints and resins (With Support)

Year

Paints Resin Total

Export $M

Import $M Net Exports

$M Export

$M Import

$M Net Exports

$M Export

$M Import

$M Net Exports

$M

2005 18.26 34.97 (16.71) 5.76 102.64 (96.88) 24.02 137.61 (113.59)

2006 37.39 43.55 (6.17) 15.01 108.03 (93.02) 52.40 151.58 (99.18)

2007 61.07 43.61 17.46 22.39 135.20 (112.82) 83.46 178.82 (95.36)

2008 75.66 31.12 44.54 25.69 110.81 (85.12) 101.35 141.93 (40.58)

2009 89.48 30.06 59.43 29.02 107.60 (78.58) 118.51 137.66 (19.15)

2010 105.95 29.03 76.92 32.79 104.49 (71.70) 138.74 133.52 5.22

2011 125.57 28.04 97.53 37.05 101.46 (64.41) 162.62 129.51 33.12

2012 148.98 27.09 121.89 41.87 98.52 (56.66) 190.85 125.61 65.23

2013 176.91 26.17 150.75 47.32 95.67 (48.36) 224.23 121.84 102.39

( ) Amounts between brackets are negative values

Source: Economic Analysis of the Study

IV.3 Employment

The financial return is not the only return of the export support; there is social impact as well.

The export support will improve the performance of the sector and attract new investments as

a result of increased production. These investments will increase the direct and indirect

employment. Production of paints will increase by about 209 thousand tons to cover the

expected increase in exports and local market (see Table I.2). The increasing production by

40-50 tons yearly will create one job in the paints sector. Accordingly, the job increase will


range from 4,180-5,225 new direct jobs due to the increased paints production. It is expected

that the increase in the resin production will range from 30-50 thousand tons. Also this is not

only the new jobs created but there is indirect jobs to be created in the paints and resins

exports sector, wholesale and retail sector, painters, and services sectors.

IV.4 Investment in the industry and expected growth after the support

The new technologies in shifting into Low & Zero-VOC products, Green Chemistry, Hybrid

Paints, Energy-Efficient Coatings, Nanotechnology & other trends will require extensive

investment in R&D activities and manufacturing equipment development.

It is not expected that number of paints and coatings companies (227 companies “according

to data from the Chemical Chamber”) to be increased, but improvements and expanding of

production capacity is the expected, which will need an increase of about 20-30% of existing

investments.

IV.5 Effect of energy pricing system on paints and coating industry

Energy is about 2% of the cost of goods (COG), which is a minor cost element. The increase

in energy pricing will have insignificant effect on the overall cost of the final product.

V. Conclusion and Recommendations The study concluded that the paints and coatings sector is a scattered sector, i.e., most of the

key players are working independently and depend on the PARASTATAL institutions.

These PARASTATAL institutions are supervised directly by the government. It is important

to state that these institutions playing an important role in the transition period to ease the

communication between private sector and government.

The need for an association for the sector is very important to give the sector the chance to

communicate as one entity with other organizations through the existing institutions and

directly, depends on the situation. The importance of creating this association is to have the

sector feel ownership on this association. In the beginning it can be used to share information

between the individual companies and provide support to the weak links in value chain of the

sector such as painters and packaging materials.

V.1 Recommendations:

In general, the producers and exporters of the paints and coating sector should start thinking

of the formulation of an association to resolve their main issues. It is important to start with


fewer issues for a newly formed association. Some of the findings of this study (weaknesses

and threats) can be used in this matter.

The recommended support should be as follows:

1) Avoid any retroactive decrees that will affect the sector negatively and discuss

these kinds of decisions with the industry representatives before issuing these

decrees.

2) The current custom duties were assessed and there is no need for immediate

change of any of them. However, after few months when the status of the current

international financial crisis becomes clearer, these custom duties need another

review to assess their effectiveness.

3) There are domestic and foreign development programs. It is important to gather

information about these programs to be used (if appropriate in developing the

sector).

4) Direct Export Financial Support: The direct financial support should be present

to the active exporting companies, with agreed upon & transparent criteria. This

support is an important incentive to the serious companies, in order to enhance the

Concept & the Culture of Export-Oriented Industry. Such a direct support can be

in a form of export support at 12% for a period of 5 years on declining bases.

In addition to the traditional financial support to the Paints Exporters, the Paints & Coatings

industry needs indirect supports in order to enhance the qualifications & the competitive

advantages of the Egyptian companies in the international markets.

These indirect supports to exports should cover the Legalization, R&D and Packaging

industry.

a. Legalization Supports: Institutional, administrative & financial supports to

qualify the companies for acquiring the international certificates in order to

enhance their export qualifications (REACH, ISO 9000, ISO 14000, etc).

However the IMC is providing significant support in this regard.

b. R&D Supports: Clear evidences indicate a shift in paints into Low & Zero-VOC

products, Green Chemistry, Hybrid Paints, Energy-Efficient Coatings,

Nanotechnology & other trends. Institutional, Technical & Financial supports in

R&D activities (which -by nature- are of high costs). The Egyptian companies

should implement professional R&D programs in order to develop their products


& find innovative solutions to the threats of rising RM prices and more strict

environmental legislations. Also, Communication Tools should be adapted

between the companies & the national technical centers (universities, research

centers, advanced laboratories …) aiming to enhance the SYNERGY in this

domain. However the IMC is providing significant support in this regard.

c. Develop Packaging materials industry: The quality of the filling & packaging

material is a prime factor in export business. Interviewed main paints exporting

companies stated that filling materials are the primary cause for customer claims.

Institutional & Financial Supports are essential to develop the Packaging materials industry.

V.2 Suggested Studies

1) A comprehensive review of the HS Codes at the Chemical Industry level to identify

the specific HSC for each sector (including paints sector).

2) The suggested association should initiate and be the owner of a detailed database of

the sector in order to resolve the contradicting information/ data.

3) Expedite the preparation of the strategy for the paints and coatings sector to identify

the vision of the sector in light of the Egyptian Industrial Strategy.

Annex A: Models

A.1: C/R Auto. Coatings

*** *** ***

Index

1) Systems.

2) Technology.

3) Market.

4) Raw materials and suppliers

5) Investment.

6) Price / Revenue.

7) Potential.

C/R Auto. Coatings

*** *** ***

1- Systems:-

• Water – based base coat.

• Water – based 2 component topcoat system.

• Water – based 1 component and 2 component primers.

• High solid 2K topcoat.

• Water – based etch primer.

• Water – based 2K filler.

2- Technology:-

• The need to reduce environmental pollution is one of the most pressing needs

of the coatings industry nowadays and in the future.

• Newly legislation concerning Voc laws are lither.

o Forcing paints & Coatings companies to change the way in which they

treat environmental pollution thin, in short, means using new coatings.

o Forcing paints & coatings companies to gravitate to industrialized

economics where environmental pollution lows are not regulated.

o The preferred choices for the future, from a coatings perspective are

either to move to high solids, UV (Solvent free, Solvent containing or

water-born) , Powder (UV or low temperature cure option) or Solvent

free technologies.

o Changes in European VOC lows and legislation are good indicator as to

what will eventually happen in this context, it is good to look at Some

relatively new VOC Legislation that has filtered through the European

community – The first Legislation to briefly review is the "paints,

Varnishes and Vehicle Repair Directive (2004/42/EC)" commonly

known as the paint products Directive (PPD). This Legislation relates to

specific VOC Limits being placed upon paints, Varnishes and Vehicle

repair coatings and will equate to significant reductions in VOC

emissions being removed from the marketplace I.e. at the moment the

VOC emission of Coatings (relating to decorative Market in Europe)

equals to something like 800K tons of VOC emission Ca. 5% of all

VOC emissions from all sources in Europe.

VOC Legislation – Car refinish products March 2007:-

Product subcategory Coatings VOC (g/L)

Preparatory and cleaning Preparatory Pre-cleaner

850 200

Body filler / Stopper All types 250

Primer Surfacer/filler and general metal primer Wash primer

540 780

Topcoats All types 420

Special finished All types 840

To satisfy this legislation, paints & coatings industry in Egypt should conduct projects

to produce the Car Refinishes Automotive paint system.

This needs availability of Hinge know-how and great Co-operation with world wide

research centers.

The expected economic impacts: are to increase the export activities, production

facilities, Labors and the turn over of the company, the expected social and

environmental impacts are decrease the emission of harmful solvents will lead to

improve health and more clean environment.

3-Markets:-

There is now potentials to export C/R Automotive coatings systems to EC Countries,

So for these systems are in compliance with EC directive (2004/42/EC) This is

because of the world wide needs to change to water based paints to overcome the

VOC emission problem by producing a new generation of products with extremely

low VOC emission.

By applying this new environmentally friendly technology the profit manganese in the

paint market. So, this project is the only opportunity to export these products to these

countries which have set the environmental legislation.

4- Raw Materials & Suppliers:-

• Acrylic resin Hydroxyl type water base (Nuplex, Bayer & DSM).

• TiO2 (Kronos ,DuPont & Cristal)

• s

• Pigments (Clariant, Ciba, and Schulz).

5- Investment:-

A production line for producing 5,000 tons/year (one 8 hours shift basis) needs an

estimated investment of Euro 300,000.

6- Potential:-

The estimated market needs in EC countries, now, is about 400 MT / year.

A.2: Manufacturing of Styrene / Acrylic Emulsion

*** *** ***

Index

8) Introduction.

9) Technology.

10) Market / Potential.

11) Raw materials.

12) Investment.

13) Price / Revenue.

Manufacturing of Styrene / Acrylic Emulsion

*** *** ***

(I)- Introduction:-

• There is increasing demand for water base emulsion polymers especially

styrene / Acrylic (Sty/Ac) for the production of wall & welling paints for

indoor uses, ready made putty and sealers.

• The estimated consumption of Egypt is around 25,000 – 30,000 MT/year.

• The use of water base emulsion is compliant with EC directives and the

environmental Legislation.

(II)- Technology:-

Emulsion polymerization by Semi continuous process. This process involves the

introduction of initial charge of selected mixtures of styrene & Ethyl Acrylate

monomers with Colloidal stability agent such as Hydroxy ethyl cellulose having a

selected M.W.

The degree of Hydrolysis are included in the initial charge with

5-10% of the monomers mixture to make the pre-emulsion, the reminder of the

monomers is added over a period of several hours at the same time, we add the

initiator, buffer solution but in separate line.

(III)-Markets /Potential:-

- Local market needs is about 25,000 – 30,000 MT/Year.

- The Local production of Styrene / Acrylic is about 2,000 – 3,000 MT dedicated for

textile industry application.

- The main competition comes from:-

* Turkey (Organik Kymia of production capacity 12,000 MT/Year.

* Dow, Jebel Ali, Dubai (production) capacity of 60,000 MT/Year.

* Synthomer Middle East, Saudi Arabia (production capacity of

40,000 MT / Year.

* The imported prices is now about 1,400 – 1,500 $ / MT CIF Alex.

(This price is changing).

(IV)- Raw Materials

• Styrene monomer.

• Ethyl Acryl ate monomer.

• Ammonium persulphate.

• Acrylic acid.

• Preservative.

• Non Ionic Surfactant.

(V)-Investment.

A production line of 4,000 L , st.st Reactor System (vessel , jacketed , with agitator ,

st.st. vertical column , centrifugal feed pump & Control panel) ,needs an estimated

investment of US$ 40,000. (for Reaction System equipment)

(VI)-Price / Revenue.

Current prices of Styrene Acrylic are US$ 1,250 – 1,350 …. Of Vinyl Veova are LE

9,500 – 10,000.

Accordingly revenues are estimated as US$ 35 – 40 million.

A.3: Silicate Paints

(I) Introduction:-

Inorganic coating with mineral structure, high resistance against UV radiation

and atmospheric influences and with high water Vapor permeation.

Historic Evaluation:-

* 4000 B.C. / Egyptian prepared for the first time the Sodium Silicate.

The Silicate is used as binder of pigments in order to do different paintings

inside the pyramids.

* 200 B.C. Romans continue using Silicate as binder of Pigments in the

Wall paintings.

* 1813 a.c., the German chemist J. Von Fuchs found the use of the

Silicate as binder in paints

* 1879 a.c, Adolph Kim prepared the first Silicate paint in two

Components.

* 1970 a.c, it is developed a new generation of Silicate paints, Silicate

Emulsion paints in one component ready to use with the following

characteristics:-

- One component. - It can contain hydrophobic agents. - 5% max. of organic material (Polymeric dispersion).

(II) Technology:-

Composition.

IInnoorrggaanniicc pprroodduuccttss ((mmiinneerraall nnaattuurree))::--

- Stabilized solution of potassium silicate. - Inorganic pigments (TiO2, and metallic oxides). - Inorganic fillers (CaCO3 , Talc , Quartz, Kaolin) - Additives.

OOrrggaanniicc pprroodduuccttss::--

- Polymer dispersion at max. 5%

Properties of the Silicate Emulsion paints

*** *** ***

--PPeettrriiffaaccttiioonn pprroocceessss::--

- Strong chemical hard with the mineral substrate (High resistance to the weather conditional.

- Fixing & reinforcing of mineral structure. - Nature matt looking. - Long life.

-- WWaatteerr VVaappoouurr ppeerrmmeeaattiioonn::--

The paint forms a micro- Crystalline structure with the substrate to which

it is applied, thereby allowing for the free passage of Vapour whilst

preventing the ingress of moisture.

- No delaminating problems. - Steam foes not cordless on the surface being held in the substrate and

slowly given back to the atmosphere.

-- RReessiissttaannccee aaggaaiinnsstt ppoolllluuttiioonn::--

The crystallization process between the silicate and the substrate forms

insoluble silicates that are highly resistant to acids (industry and car

pollution) and alkalis.

-- RReessiissttaannccee aaggaaiinnsstt UUVV rraaddiiaattiioonn ffrroomm tthhee ssuunn::--

- Only inorganic pigments which are stable against UV radiation. - No loss of colors - The UV radiation does not affect the bonding between the silicate and

the substrate.

-- SSiilliiccaattee ppaaiinnttss aarree HHyyggiieenniicc::--

- No organic nutrients, So no growth of moulds and algae. - The high alkalinity nature (pH ≈ 2.5) prevents the growth of the spores

of mould / algae on the paint Surface.

-- EEaassyy ttoo cclleeaann::--

- Its breath ability ensures a clean, Healthy surface and always dry.

-- FFiirree rreessiissttaanntt::--

* Non-combustible, class 0 it resists the spread of flame over the

Surface.

* No solvents.

* In case of fire, no toxic gases are released.

-- EEnnvviirroonnmmeennttaallllyy SSaaffee ::--

• Water born System Odorless and non-toxic.

• Solvent free with inorganic constituents, fully compatible with today mineral building materials.

• Harmless to the decorator and these are no slow release emission in Service.

• Production process in low energy consumer.

-- RReessiissttaannccee ttoo ccaarrbboonnaattiioonn ::

Protection of the substrate against atmospheric CO2.

((IIIIII)) –– MMaarrkkeett // PPootteennttiiaall

Coastal areas to protect facades forever in Egypt & Gulf areas.

• Resonation of Historic buildings in Egypt.

• Export to E.C. countries.

((IIVV)) -- RRaaww mmaatteerriiaallss // SSuupppplliieerrss ::--

- Anionic surfactants (I.Q.E). - Cellulose thickener (Aqualone) - Dispersant (I.Q.E). - TiO2 (Bayer, Koronas) - Ca CO3 (Omya). - Styrene / Acrylic emulsion (BASF). - Potassium Silicate (I.Q.E).

((VV)) –– IInnvveessttmmeenntt ::--

AA PPrroodduuccttiioonn lliinnee ffoorr 55,,000000 ttoonnss//yyeeaarr ((oonnee 88 hhoouurrss sshhiifftt)) nneeeeddss aann eessttiimmaatteedd

iinnvveessttmmeenntt ooff EEUURROO 220000,,000000

((VVII)) -- PPrriiccee // rreevveennuuee ::--

• Imported price from E.C. is around 8000€ / MT CIF Alex.

• The raw materials prices is around 4000 € / MT.

• The current price in Egypt is ≈ 120,000 L.E. / MT.

Annex B: Manufacturing Process

1 Overview

Paints can be divided into 2 main types: The Decorative Paints (also called Architectural

Paints) & the Industrial Paints.

Architectural Paints

Architectural paints are used for building and decorative purposes.

In general, this type of Paints is divided into four categories and comprises synthetic alkyd-

based paints (Solvent-Based Paints), emulsion paints (Water-Based Paints), synthetic

varnishes and processed oils and oil based paints.

Synthetic alkyd-based paints are based on alkyd resins and are used to coat wood and

substrates, such as windows and masonry, ceilings, metals (after coating with primers) and

walls in bathrooms and kitchens. This category includes: high gloss, semi gloss and matt

finish synthetic paints.

Emulsion paints are based on a latex-soluble binder polymer and are easy to use because they

are water-reducible and dry in the air. They are used for interior and exterior finishing work

for residential and commercial buildings and "do-it-yourself DIY" uses.

Synthetic varnishes are essentially clear pigment-free synthetic paints and are used for

coating wood substrates, flooring and low quality furniture.

Processed oils and oil based paints are used as primers, sealers and undercoats, either alone or

mixed with pigment. They are produced using vegetable oils and were the main paint

products in old days. They are now of reduced importance, but remain less expensive

compared with other paints and are still in use, mainly for interior and exterior finishing work

on buildings where durability and quality of finish is of lesser importance. They are mainly

used by professional painters.

Industrial paints

Industrial paints can be divided into eight categories , which includes automotive OEM

(Original Equipment Manufacturing) stoving paints, automotive refinishing (cellulosic and

polyurethane) paints, stoving (acrylic) electrostatic enamels, metalwork (alkyd-based) stoving

enamels, wood finishes, heavy duty paints, marine paints and general industrial paints.

Automotive OEM stoving paints are based on alkyd resins and are used in the automotive

industry for painting vehicles. Acrylic primers, metallic acrylic paints, polyester and epoxy

paints primers are examples for this type of paints.

2

Epoxy primer systems are typically used for adhesion and moisture resistance, as well as for

inter-coat adhesion. Polyurethane primer and/or topcoat systems are used for application

flexibility, color and gloss retention, and throughput enhancement, like going wet-on-wet

from the primer to the topcoat. In some cases OEMs use polyurethane on top of epoxy. The

coatings are typically high solids/low volatile content formulations, responding to rising

interest in waterborne and powder technologies among OEMs.

Automotive refinishing paints are based on nitrocellulose and acrylic urethane resins and are

used for car repairs and for the painting of railway stock and commercial vehicles which are

too large to be finished by stoving. Automotive refinishing paints are applied by spraying and

are particularly suitable for such uses because of their quick drying properties.

Stoving electrostatic enamels are based on acrylic resins and are sprayed electrostatically in

order to reduce overspray. They are used for painting domestic appliances.

Metalwork stoving enamels are based on alkyd resins mixed with urea or melamine

formaldehyde and are used for painting metal furniture.

Wood finishes consist of paints and varnishes and are produced from nitrocellulose,

polyurethane and alkyd resins. They are used mainly in the production of wooden furniture.

Heavy duty paints are based on epoxy resins, polyurethane, chlorinated rubber or vinyl. They

are used for the painting of metal structures and in the oil services industry. This type of

paints includes zinc-rich primers for heavy industrial use which have extra anti-corrosive

properties. The heavy duty paints category includes heat-resistant paints for solar heating,

insulating fast dry varnish for electric motors, epoxy-based polyamide primers and

polyurethane paints for aeroplane uses. The coatings for towers &tanks include zinc-rich and

epoxy primers, and polyurethane and polysiloxane topcoats, which are applied in two or

three-step processes, depending on customer specifications and performance expectations.

Marine paints are used for marine applications. They are similar to the heavy duty paints in

formulation with Anti Fouling Agents to be added in order to meet the nature of their uses.

Thinners are produced by the mixing of certain refined petroleum products and are used for

diluting certain paints to obtain an appropriate concentration and viscosity. The customers

modify the concentration of paint by adding thinner according to their particular

requirements.

General purpose industrial paints comprise a wide range of products, including synthetic

primer, heat resistant aluminum based paints, fast drying enamels, polyurethane varnish,

hammer finisher, paint removers, etching primers, high temperature heat resistant silicon

3

based paints, traffic paints, insulating varnishes, leather lacquers and water reducible stoving

paints.

2- Raw Materials

Paints Raw Materials

The raw materials for paints falls into four main categories: binders, pigments, solvents and

other materials.

Binders

The major types of Binders are long oil and medium oil alkyd resins necessary for the

manufacture of gloss and matt decorative paints. These resins are made of local and/or

imported vegetable oils or fatty acids. The second major binder used is acrylic emulsions

(pure acrylic, styrene acrylic & vinyl veova emulsions) which are either locally manufactured

or imported. The acrylic emulsions are used in the production of architectural emulsion

paints.

Other types of binders are imported, such as the industrial resins (epoxy resins, polyurethane

resins, special short alkyd resins and chlorinated rubber fast drying industrial alkyd resins).

Pigments

Pigments can be divided into organic (including anti-corrosive pigment) and inorganic

pigments.

The major inorganic pigments are titanium dioxide (for white), iron oxide (for red) and lead

chromate (for yellow). Organic pigments are more weather resistant and are used for

architectural and general industrial paints. Anti-corrosive paints are produced from mainly

imported inorganic pigments such as zinc chromate, zinc phosphate and zinc dust. High

performance organic pigments are used for automotive OEM finishes.

Solvents

The principal types of solvent used in the paints industry are mineral spirits (which are

aliphatic solvents refined from oil), Xylene and toluene (which are aromatic solvents refined

from crude oil). The major suppliers of solvents are locally based.

Other materials

Other materials include additives, fillers, and raw materials for resins, driers and oils.

Fillers are primarily provided by local suppliers.

The major additives used in the industry include wetting and dispersing agents, anti-foaming,

anti-skinning and Rheology modifiers…. and are sourced overseas.

The major fillers used in the industry include the locally produced calcium carbonate and

talcum powder and the imported synthetic barium sulphate.

4

The major raw materials for alkyd resins are Phthalic anhydride, glycerol, vegetable oils,

fatty acids and monopentaerythritol.

The majority of these raw materials are imported. Pigments are the most important of the

imported products by value (most notably titanium dioxide, the pigment used in the

production of white paints).

3- Production Process, Packaging and distribution

The manufacturing process is broadly similar for all types of paints. The raw materials,

which consist of pigments, solvents, resins and additives, are first mixed and then ground to

achieve the correct grade of fineness(In the case of emulsion paints, grinding is not needed).

Once ground, the paint is transferred to finishing tanks where it is treated with further resins,

solvents and additives as necessary and pursuant to quality control tests.

The finished product is then filled into cans, which are then packed manually into cartons.

The Production Follows the Batches scheme.

Mixing occurs in mixers of various sizes: these are vertical drums with a rotating paddle.

Mixing time varies from one and half to two hours depending on the type of paint and the

size and power of the mixer

Grinding occurs in rollers or bead mills: these are horizontal rotating drums full of steel balls

or glass beads. The mixed ingredients are either transferred from the mixer to the grinder by

pumping. Grinding takes about 30 minutes.

Paint cans are filled using filling machines of different types (manually operated, semi-

automatic or automatic, gravimetric or volumetric).

Alkyd Resins

Alkyd Resins are raw materials needed for manufacturing synthetic architectural paints &

industrial paints. There are number of local manufacturers for the Alkyd Resins. Other resins,

such as acrylic latex for emulsion paints (now, one local manufacturer for acrylic emulsions

exist) and most resins for industrial paints, are imported.

Manufacturing Alkyd Resin include an exothermic, reversible chemical reaction in which a

poly acid (e.g. Phthalic Anhydride) & a polyol (eg. Pentaerythritol) are reacting to form a

honey like mass of alkyd resin.

1. For manufacturing Alkyd Resins, vegetable oil, glycerin, Penta Erythritol and Phthalic

anhydride are pumped according to a prescribed sequence of addition, weights &

temperatures into reactors which are heated either by pumped thermal oil or by direct fire.

The materials are cooked in the reactors for approximately eight hours. The process

requirement includes heating, cooling, vacuum application, continuous remove of one

5

product (the water) in order to force the reaction in the direction of forming the alkyd resin &

purging of an inert gas into the reactor. The resultant hot resin is then transferred to dilution

tanks to be thinned, and then pumped through filters to finishing tanks where quality control

samples are taken and necessary adjustments are made.

4- Quality Assurance

a. National Standard Regulations for Paints (1539/2002 – 1757/2001 – 793/2001)

b. Law No. (4)/1994 for Environments (water - air - soil - sound)

c. International Standardization Organization certificates ( ISO

9001 - ISO 14001 - ISO 17025 )

5- Product development

The effort to comply with VOC regulations without sacrificing quality has created a heavier

workload for paint chemists who are already under tremendous pressure. Consolidation has

taken its toll on R&D departments throughout the paint industry and resins suppliers have

been picking up the slack.

The days of large R&D department that can screen new products are gone. Raw Materials

suppliers are spending more time evaluating new materials before they go to mar¬ket. Paint

manufacturers are seeking solutions, not just products. They are looking for more support. In

some cases, raw materials suppliers are giving them finished formulations."

Chemists of RM suppliers may be placed in customer labs to assist them with formulation

work ranging from short-term projects such as reducing costs without sacrificing quality to

longer-term projects such as readying formulations for future VOC requirements.

In addition to low VOCs, requests also center on improved durability and chem¬ical and

stain resistance. Sometimes, when you go to lower VOC, it requires different technology, and

that means more costs.

R&D activities are looking for products or technolo¬gies that bring value, for example, lower

raw material costs or lower total formulation cost; lower film builds or reduction in overall

coatings layers; increased productivity or reduced application costs. Secondly, R&D activities

are seeking products to solve existing problems or meet a specific performance requirement.

A third consideration would be ecological benefits, VOC reduction, waste elimination and

abil¬ity to recycle. These are the areas of focused prod¬uct and technology developments.

There are several challenges that are affecting the paints market including the rise in raw

materials costs, energy prices and the economic slowdown. The unprecedented escalation in

the price of oil, natural gas and raw materials is having a significant impact on everything

6

from manufacturing to shipping costs. The manufacturing companies should deal with these

challenges by focusing on the development of sustainable and renewable products. The

companies should also pay close attention to results of voice-of-the-customer interviews to

ensure all R&D efforts are being focused on marketable technologies & products.

In order to stay afloat in this challenging environment, paints manufacturers must develop

innovative solutions for their customers. Environmentally responsible and sustainable

products offer the paints market opportunities for growth.

The growth and increased awareness of green building initiatives will continue to require

sustainable coatings solutions. In the aluminum extrusion industry, products which are HAPs

compliant and low VOC coatings have less impact on the environment.

6- Human Resources

The Companies should consider their employees as the most significant asset it owns. Thus,

retaining the employees is a corner stone in the Company strategy to sustain business.

This is achieved through several tools:

- Rewarding & Motivation system.

- Support employees via services, fringe benefits policies (including medical care,

transportation, meals & summer activates).

Employee performance management system

a. The system should cover skills and career progression of employees.

b. An annual employee performance form is to be set to evaluate the individual performance

of each employee. These forms reflect the quantity & quality of work, the ability to work in a

team, the capability to develop the work, the degree of comply with the rules … & many

other parameters. They consider the skills, education, potential career, training courses,

improvement paths, .. etc. These forms are used as an appraisal tool in order to support the

organization objectives.

c. The reward & incentives parameters set some factors of evaluation linked to customer and

business focus.

Hiring and career progression

a. A Human Resource Plan should be prepared.

b. The current employees' knowledge & skills should be assessed & developed according to

the required needs.

c. The recruitment system (Hire & Fire) should be online with legal recruitment principles.

This system should be applied upon executing the Human Resource Plan.

7

d. The diversity of the ideas, culture & thinking is assessed through the hiring interviews with

the candidates.

Employee learning ,education ,training , motivation &development

a. The Companies should set a development plan and incentive programs to support the

employee capabilities.

b. The incentive System should meet the following requirements:

- Link performance with results and objectives.

- Cover the sales objectives.

- Cover bonus for employee of the month.

- Encourage employees to develop their qualifications and performance.

c. The Education & training programs should cover both skills & knowledge areas in order to

support the strategic objectives.

These includes technical & managerial issues (e.g. communication, teamwork, planning,

reducing waste, supply chain management, project management, quality management, legal

compliance, … etc).

d. The findings of performance review sessions play a key role in determining the education

& training needs.

e. Monetary compensations (raises incentive pays,…) should be based on performance &

skill acquisition.

• Employees well being and satisfaction

• Work environment

- The Companies should give special attention to environmental affairs and to be

certified in ISO 14001.

- Occupational & Safety Health regulations should form an integrated part of the

Company's ISO 9001 file.

• Employee support and satisfaction

- The Companies should determine the key factors that affect employees well being

through different tools:

a. Survey forms for employee opinions.

b. Measurement & tracking of employees' turnover.

c. Providing boxes in the workplace for employees' complains.

The companies should use similar tools as formal & informal assessment methods &

measures to determine employees well being, satisfaction & motivation.

8

- The Companies should support employees through providing some sorts of services,

benefits and policies, e.g.

- Incentives system.

- Employees share in net profit dividends.

- Provide all required resources.

- Promotional chances.

- Recognition announcements

- Provide series of benefits in kind:-

a. Medical care.

b. Transportation.

c. Lunch meal.

d. Summer activities.

7- Legislative & Environmental issues

Manufacturing paints involves handling & using many of hazardous materials. Mishandling

of such materials could lead to severe safety or environmental consequences.

• The Products must meet Egyptian standards No. 1539/2002 (Emulsion Paints), No

1757/2001 (Matt Paints) & No. 793/2001 (Gloss & Semi gloss Paints)

• The Companies are legally committed to rules & requirements of " Law of Environment

No. 4 /1994 ", but & self committed to go above & beyond what is legally required.

This commitments form an Ethical milestone in the Company's performance.

• It is recommended for the Companies to give special attention to environmental affairs and

to be certified in ISO 14001.

• The Companies are entitled to hold legal operational permits which allow it to be operative.

These permits are issued by different authorities after close & direct assessment of Safety,

Health & Environmental consideration. Such permits are renewed annually.

Such conformance is subject to oversight by Interior Trade Agencies as well as Egyptian

Standardization authorities.

• Also the Companies are subject to be oversight by other local authorities: Health

administrations (Ministry of Health), Safety Departments (Ministry of Interior), Safety &

Health Administrations (Ministry of Manpower), Environment Administrations (Ministry of

Environmental Affairs) & Developing Departments (Ministry of Habitation, Utilities & New

Communities).

• The European Directive 2004 / 42/ CE, which sets out limitations on emissions of VOC due

to the use of organic solvents in most decorative paint.

9

• European coatings makers continue to face the Biocides Product Directive and increasing

performance requirements.

• Law No. (4)/1994 for Environments (water - air - soil - sound)

• Law of work

• International Standardization Organization certificates (ISO 9001- ISO 14001 - ISO

17025)

8- Requested international certificates

• The EU agreed to carry out a second round of impact assessments on its controversial

Registration, Evaluation and Authorization of Chemicals (REACH) proposal, the mood both

inside and outside the chemicals industry has gradually started to shift, with disparate factions

beginning to coordinate efforts to improve the proposals. REACH was first presented in May

2003 as a solution to EU concerns about the safety and administration of chemicals. The aims

of the proposed new regulations, which would replace 40 separate pieces of current

legislation, are meant to decrease human and environmental exposure to chemicals whilst

simultaneously enhancing the competitiveness and innovative capabilities of the EU

chemicals industry. Under the proposed legislation, the European chemicals industry would

have to register the properties of substances with a central EU database. The process is

expected to take until 2016 to complete. Meanwhile, the availability of chemicals to

consumers, particularly low-volume niche products, will decline.

• International Standardization Organization certificates ( ISO 9001 - ISO 14001 - ISO

17025 )

9- International developments in paints, coating and resins industries (New trends in

paints and resins production process, new types of paints environmentally friendly, new

surface coating products could substitute or compete the paints)

• Benjamin Moore reports that it has made a serious effort to keep costs in check for its

customers, even as it transitioned its premium Moorlife, Moorgard and Moorglo to 100%

acrylic products, improving hide and mildew resistance and offering a lifetime warranty.

• Benjamin Moore has also bolstered its exterior offerings, replacing its existing Moorwood

stain line with its new Benjamin Moore Exterior Stain line. The main factor pushing the

overhaul was VOC laws in order to bring it down to the 250 range, although the cost of raw

materials in the lower VOC formulations can be significantly higher than raw materials used

in older technology.

10

• As U.S.-based companies reformulate based on regional VOC requirements, time is ticking

for European companies to get in compliance with the European Directive 2004 / 42 / CE,

which sets out limitations on emissions of VOC due to the use of organic solvents in most

decorative paint.

• Other issues European coatings makers continue to face include the Biocides Product

Directive and increasing performance requirements.

• The international projects focus is given to innovative solutions to achieve in parallel VOC

compliance together with additional improved product characteristics.

• To create more robust products for exterior applications, there must be a strong focus on

R&D and a willingness to experiment and utilize topnotch materials.

New technology and newly developed binders have helped in developing harder and tougher

paint which will stand up to the harsh climate for an increased number of years.

• Jotun U.A.E. launched Jotashield Thermo, a pure acrylic exterior coating that has been

independently proven by the Dubai Municipality to reduce heat absorbed by walls. Special

glass beads deflect the sun's heat, cooling the interiors and saving energy, according to the

company.

• Among the first smart architectural paints to reach the market in Europe are photocatalytic

paints in which the reactive component is nanosized particles of titanium dioxide (Ti02). But

already it is evident that the successful commercialization of the intelligent coatings will not

be easy.

UV coatings

The basic challenges with automotive refinish coatings are to prepare invisible repairs

These repairs are carried out in several application steps. These steps usually consist of

primer, basecoat and clear coat applications. Generally each of these applications, done at

room temperature, takes a combined amount of time ranging from four hours to several days.

In some instances, there are other steps such as body filler, wash primers, adhesion promoters

and sealers that can add additional time. In all cases, the user needs to wait for the coating to

cure and time is wasted.

Most of the conventional refinish coatings consist of two-component (2K) material and have

limited pot life for applications. This limits the amount of time the coating can be used and

applied. When using two-component chemistry there is also more waste generated from not

knowing how much material is needed for each repair. Waste is also generated from the

clean-up of the application equipment when used. There is also time wasted mixing material

and having to clean application equipment after each of the application steps.

11

There is another concern with conventional refinish coatings dealing with consistency. With

an air-dry coating, temperature and humidity have an effect on the cure of the coating. If the

coating is under-cured in any of the steps, there could be factors such as adhesion loss,

dieback, swelling and appearance imperfections that are not seen for several days. When this

happens, the repairs usually have to be repeated, taking up more valuable time.

With UV technology being applied to automotive refinish applications; the issue of time,

waste and consistency can be overcome. UV technology will assure the user that a repair has

been performed correctly, in a relatively short amount of time with minimal waste.

The common advantages of using UV coatings in automotive refinish are mixing of

materials, unlimited application window, limited waste and less application equipment

cleaning.

• In North America one of the leading trends in the construction industry, including the

commercial, institutional and residential sectors, is the use of energy-saving and

environmentally friendly designs and building materials. Coatings makers have responded

with `greener' products that reflect heat-generating sunlight more efficiently and include more

energy ¬efficient application processes.

Besides developing coatings that help save energy, coatings companies continue to work on

improving the weatherability of coatings used in exterior applications such as metal roofs and

walls, building trim, and garage and entry doors among other applications. Other objectives

include better resistance to abrasion and other kinds of damage, as well as improved color

consistency and color matching.

• ENERGY EFFICIENT TECHNOLOGY….In terms of R&D, the next frontier for industrial

coatings is to further develop greater aesthetic value and energy efficient solutions.

One increasing trend offering energy efficient solutions to the construction industry has been

the development of "cool roof" technology. While many building roofs are coated with hot tar

or black rolled asphalt because of their sturdy nature, these materials do nothing to cool down

temperatures during the hot summer months. Cool roof technology, in contrast, coats the roof

surface with a reflective material that can lower the temperature of a building's roof by up to

100 degrees, producing lower interior temperatures and reducing cooling costs by up to 50%,

according to EPA.

Latest development in cool coatings represents a technological and aesthetic breakthrough.

With a solar reflectivity of at least 25%, the new coating offers the metal roofing market a

new range of dark colors, including a true black that meets cool standards.

12

• Formulators are dealing with the challenges of rising raw material prices and increasingly

strict environmental legislation. These two issues have had a profound impact on the anti-

corrosion market, leading anti-corrosive coating makers to reformulate to reduce the amount

of pricey raw materials, as well as develop products that will meet current and impending

environmental legislation.

• Nanotechnology will play a role in the corrosion inhibitor market as new technologies

develop, such as Sol-Gel Systems. The incorporation of conductive polymers in lieu of

corrosion inhibitors may occur in specialized applications. There are some interesting

approaches of the nanotechnology expected due to the electrochemical properties, but the

cost and handling are obstacles that have to be overcome first.

Nanotechnology will most likely include some interesting future perspectives for paint

formulators, but the feasibility of that technology for industrial use especially in respect to the

handling and costs has not yet been proven. Close contact with different universities and

institutes, who are engaged with nanotechnology is a must in order to participate in these

projects.

• Green chemistry is another major trend….

Companies have invested heavily to develop VOC-compliant, environmentally friendly

coatings. They are normally more expensive than the coatings they replace but they do a

better job and enable industrial companies to meet government regulations, make their plants

better for their employees and improve our environment.

• As efforts by manufacturing companies to reduce VOC emissions from their plants

continues to be a major trend driving the market forward, other industrial coatings market

trends reflect consumer demands for more color choices, lower curing temperatures for bake

enamels, shorter dry times for air dry coatings, increased corrosion and moisture resistance,

resistance to marring and fingerprinting of home appliances, and improved durability of

coated surfaces.

• The use of powder coatings for the coating of architectural metal is well established across

the world. Powder coatings have been used to protect and decorate architectural aluminum

for more than 30 years. Choice of color and gloss appealed to architects, ease of application

and associated environmental benefits encouraged coaters and overall performance in terms

of exterior durability completed the package.

Powder manufacturers, many of whom are global operators, are all working to support

growth by developing the products that will satisfy both today's users and the potential

13

markets of the future. Regional variations however still exist in the extent of substitution by

powder of alternative finishes such as anodizing and liquid coatings.

These include satisfying fashion demands with color service and special finishes,

anticorrosive powders and the new generation of exterior durable products. In addition new

ways of making and applying powder will ensure that it is the most cost effective finish.

In a region such as the Middle East, where climatic conditions increase the demands on

performance, powders with significantly improved exterior durability can replace liquid

paints.

There are a number of developments in powder that are either already commercialized or will

be in the coming years that will address both the geographical and sub-sector demands.

Systems such as Ultra Durable architectural finishes are already in the market. Such products

have now been in use for over 10 years including in the Middle East.

• Automotive OEM coatings suppliers face the challenge of rising raw material and energy

costs by focusing on developing energy-reducing technologies.

Automakers face continuing pressures to cut production costs, automotive OEM coating

suppliers are focusing on developing innovative technologies that meet both environmental

regulations and help reduce overall energy costs.

• Wet on wet two tone process at Ford Kentucky Truck to increase capacity and lower the

cost of two tone production.

• Primer surfacers with improved chip resistance to eliminate the need for an additional chip

protection primer.

• In addition, automakers have developed a primerless waterborne topcoat sys¬tem which is

now in place at two Volkswagen facilities. DuPont's EcoConcept primerless waterborne

basecoat system was recently launched at VW and nominated for an automotive news PACE

award. DuPont's wet on wet solvent borne topcoat technology was initially launched with

basecoat to primer on two tones and also won a PACE award. This concept is now capable of

being used as the main color as well.

• BASF Coatings has recently launched a new automotive OEM coating technology.

Integrated Process II is a novel, highly efficient coating technology. For the new process, the

specially formulated basecoats combine all the functions of the primers, such as stone chip

protection and ultraviolet resistance. The new technology meets the stan¬dards for

automotive finishes with regard to appearance and functional¬ity. For the automotive

industry, this means that the coating process is shortened due to the elimination of the primer

application section of the paint line and the primer oven. Those primer application facilities

14

that are no longer needed can be used to increase capacity. Advantages of the new system

include reduced invest¬ment and operating costs, material and energy savings, improved

pro¬ductivity and eco-efficiency.

The new system has been success¬fully operating and integrated into the Mini production

line at the BMW Group Oxford, UK plant. With the new system all of the basecoats used at

the BMW Group Oxford plant can be applied. With Integrated Process II, auto¬motive paint

lines can be streamlined, costs cut and the overall process sim¬plified, even at existing paint

lines and capacity can be expanded without complicated and costly construction projects.

• PPG has invested considerable R&D time in developing innovative paint processes. These

processes are combining traditional layers of the paint system into one, essentially to reduce

the number of steps and layers to paint a car.

• Another area of interest for PPG is nanotechnology.

PPG is leading the industry in the use of nanotechnology in clearcoats for scratch resistance.

That technology is expanding to other customers and products.

PPG's CeramiClear clearcoat is the first automotive clearcoat to use nanoparticle technology

and combines and combines resistance to scratches, mars and acid etch. The patented

nanoparticle tech¬nology creates a highly cross-linked network at the surface of the coating

for superior resistance to damage caused by day-to-day use, car washes and environmental

hazards such as acid rain and tree sap.

This technology works with an auto¬motive plant's existing waterborne basecoat, primer and

electrocoat lay¬ers and can be used with a conven¬tional circulating system. The coating

does not increase emission levels or introduce new emissions to the waste stream and can

reduce an automaker's total cost by decreasing in-plant dam¬age, buffing and dealership

touch-up, according to the company.

• To further meet the needs of its cus¬tomers, PPG developed an aftermar¬ket refinish

clearcoat, which provides approximately the same level of pro¬tection as the factory-applied

CeramiClear clearcoat, for vehicles requiring body repairs.

• Sartomer's Krasol HLBH¬P 3000 is a hydroxyl-terminated poly¬olefin with a molecular

weight of 3000 that is used in polyurethane systems. This resin brings extreme hydrolysis

resistance (water, steam, acid, and base), good adhesion, low Tg and improved weathering to

coatings applications due to its saturated backbone.

• Akzo Nobel Resins' Setalux 37-6770 (styrene-acrylic) and 37-6779 (all acrylic) are self

crosslinking emulsions based on patented technology that offers the benefits of quick dry,

good block resistance, early blush resistance and chemical resistance. Both can be used in

15

low VOC formulations, with Setalux 37-6770 suited for general industrial and industrial

maintenance applications and Setalux 37-6779 designed for primers and stain sealers for deck

coatings and other specialty architectural applications. Setalux 17¬2450 is a hydroxy-

functional acrylic polyol for two-component vehicle refin¬ish applications. Designed for fast

cur¬ing clearcoat or single-state paint appli¬cations, when combined with appropri¬ate

aliphatic polyisocyanates, Setalux 17-2450 provides fast cure with a longer pot-life for

excellent application and appearance properties and the excellent attributes of DOI. It also

has excellent early hardness development and is buff able in a couple of hours, according to

the company.

• The growth and increased awareness of green building initiatives will continue to require

sustainable coatings solutions like BASF’s Ultra-Cool and Vari-Cool production. In the

aluminum extrusion industry, for instance, products like EcoCeam, which is HAPs compliant

and low VOC flexible polyester coatings, have less impact on the environment.”

ANNEX C

Recent Laws, Legislations and regulations of paints and coatings

industry

There are a number of laws and regulations that address the different environmental violations. The following are the laws applicable to the paints industry.

Concerning Air Emissions

Article 40 of Law 4/1994, article 42 of the executive regulations and annex 6 deal with gaseous emissions from combustion of fuel. The statutes relevant to the fuel combustion are:

• The use of solar oil and other heavy oil products, as well crude oil shall be prohibited in dwelling zones.

• The sulfur percentage in fuel used in urban zones and near the dwelling zones shall not exceed 1.5%.

• The design of the burner and fire-house shall allow for complete mixing of fuel with the required amount of air, and for the uniform temperature distribution that ensure complete combustion and minimize gas emissions caused by incomplete combustion..

• Gases containing sulfur dioxide shall be emitted through chimneys rising sufficiently high in order that these gases become lighter before reaching the ground surface, or using fuel that contains high proportions of sulfur in power generating stations, as well as in industry and other regions lying away from inhabited urban areas, providing that atmospheric factors and adequate distances to prevent these gases from reaching the dwelling and agricultural zones and regions, as well as the water courses shall be observed.

• Chimneys from which a total emission of wastes reaches 7000 – 15000 kg/hr, shall have heights ranging between 18 – 36 meters.

• Chimneys from which a total emission of gaseous wastes reaches more than 15000 kg/hour, shall have heights exceeding at least two and a half times the height of surrounding buildings, including the building served by the chimney.

• The permissible limits of emissions from sources of fuel combustion in boilers are given in table (1) (Ministerial decree no. 495, 2001). The permissible limits of emissions from sources of other fuel combustion sources (Dow-therm oil heater) are given in table (2).

Table 1: Maximum Limits of Emissions from Sources of Fuel Combustion in Boilers Pollution Maximum limit mg/m3 of Exhaust

Sulfur Dioxide 3400

Carbon Monoxide 250

Smoke 50

Table 2: Maximum Limits of Emission from Fuel Burning Sources Pollutant Maximum Permissible Limit, mg/ m3

SMOKE 250

DISPERED ASHES 250 (sources existing in urban regions, or close to residential areas)

500 (sources far from habitation)

500 (burning of wastes)

SULPHUR DIOXIDE Existing: 4000 New: 2500

ALDEHYDES Burning of waste: 20

CARBON MONOXIDE Existing: 4000 New: 2500

Concerning Effluents

Limits for pollutants in wastewater vary depending on the type of receiving water body. The parameters that should be monitored and/or inspected are Oil& grease, BOD, COD, pH, color, temperature, residual chlorine, TSS, TDS, and heavy metals.

Table (10) presents the permissible limits for discharges to the different recipients (sea, Nile, canals, agricultural drains, public sewer) according to the different relevant laws.

Spent lube oil has a negative impact on water and soil and therefore its disposal should be monitored/inspected. A record should be kept for this purpose.

Concerning Solid Wastes

A number of laws address solid waste management. The following laws apply to scrap, garbage (paper,..), and sludge from the WWTP:

• Law 38/1967 which addresses public cleanliness regulates the collection and disposal of solid wastes from houses, public places, commercial and industrial establishments.

• Ministry of Housing, Utilities and Urban Communities (MHUUC) decree No. 134 of 1968, which provides guidelines from domestic and industrial sources, including specifications for collection, transportation, composting, incineration and land disposal.

• Law 31/1976, which amended law 38/1967.

• Law 43/1979, the Law of Local administration, which provided that city councils are responsible for “physical and social infrastructure”, effectively delegating responsibility for infrastructure functions.

• Law 4/1994 regulates incineration of solid waste.

Concerning Work Environment

Violations of work environment could be encountered:

• Gas emissions (VOCs and metal particulates) generated in the production lines, are regulated by article 43 of Law 4/1994, article 45 of the executive regulations and annex (8), (table 11).

• In the boiler house: gas emissions, regulated by article 43 of Law 4/1994, article 45 of the executive regulations and annex 8. The limits for the relevant pollutants are presented in Table (11).

• Wherever heating is performed: temperature and humidity are regulated by article 44 of Law 4/1994, article 46 of the executive regulations and annex 9 of the Law (table 12).

• Near heavy machinery: noise is regulated by article 42 of Law 4/1994, article 44 of the executive regulations and table 1, annex 7 of the Law.

• Ventilation is regulated by article 45 of Law 4/1994 and article 47 of the executive regulations (tables 13, 14, 15)

• Smoking is regulated by article 46 of Law 4/1994 and article 48 of the executive regulations, and Law 52/1981.

• Work environment conditions are addressed in Law 137/1981 for Labor, Minister of Housing Decree 380/1983, Minister of Industry Decree 380/1982

Table (11) Permissible limits as time average and for short periods

Material

Threshold

Time average Exposure limits for short periods

ppm mg/m3 ppm mg/m3

Ammonia 25 18 35 27

Carbon dioxide 5000 9000 15000 27000

Carbon monoxide 50 55 400 440

Sulfur dioxide 2 5 5 10

Acetone 750 1780 1000 2375

n- Butyl alcohol 50 150

Butyl acetate 150 710 200 150

Toluene 100 375 150 560

Xylene 100 435 150 655

Ethyl acetate 400 1400

Cadmium salts/ particulates 0.05 0.2

Hexa valent chromium 0.05

Total particulates 200

Table (12) Maximum Permissible Limits for Heat Stress (law 4/1994)

Type of Work Low Air Velocity High Air Velocity

Light work 30o C 32.2 o C

Moderate work 27.8 o C 30.5 o C

Severe work 26.1 o C 28.9 o C

Table (13) Maximum Permissible Noise Levels (law 4/1994)

No Type of place and activity Maximum permissible noise decibel (A)

1 Work place with up to 8 hour and aiming to limit noise hazards on sense of hearing

90 dB

2 Work place where acoustic signals and good audibility are required 80 dB

3 Work rooms for the follow up, measurement and adjustment of high performance operations

65 dB

4 Work rooms for computers, typewriters or similar equipment 70 d.B

5 Work rooms for activities requiring routine mental concentration 60 dB

Table (14) Noise Intensity Level Related to the Exposure Period

Noise intensity level decibel (A) 95 100 105 110 115

Period of exposure (hour) 4 2 1 ½ ¼

Table (15) Noise Intensity Level In Intermittent Knocking Places

Noise Intensity db Max Allowable Knocks During Daily Work Period

135 300

130 1000

125 3000

120 10,000

115 30,000

Concerning Hazardous Materials and Wastes

Law 4/1994 introduced the control of hazardous materials and wastes. The paints industry generates any hazardous wastes, such as chemicals empty containers, spent solvents, sludges from the solvent recovery unit and WWTP, and spent filters clothes. Hazardous chemicals such as solvents, and caustic solutions are used for washing vessels. The hazardous chemicals used in the lab and the fuel for the boilers, fall under the provisions of Law 4/1994. Articles 29 and 33 of the law makes it mandatory for those who produce or handle dangerous materials in gaseous, liquid or solid form, to take precautions to ensure that no environmental damage shall occur. Articles 25, 31 and 32 of the executive regulations (decree 338/1995) specify the necessary precautions for handling hazardous materials. Storing of fuel for the boilers is covered by the Law 4 as hazardous material There is no explicit articles in Law 4/1994 or in decree 338/1995 (executive regulations), regarding holding a register for the hazardous materials; article 33 is concerned with hazardous wastes. However, keeping the register for the hazardous materials is implicit in article 25 of the executive regulations regarding the application for a license.

The Environmental Register

Article 22 of Law 4/1994 states that the owner of the establishment shall keep a register showing the impact of the establishment activity on the environment. Article 17 and Annex 3 of the executive regulations specify the type of data recorded in the register. The emergency response plan and the hazardous materials register will also be part of the environmental register as stated in part 4.5.

Pollution Abatement Measures

This section deals with pollution abatement (preventions) in the three media air, water and soil. Three types of interventions will be considered:

• In-plant modifications, which are changes that are performed in the plant to reduce pollutant concentrations in streams through recovery of materials, segregation and/or integration of streams, reducing the flow rate of the wastewater streams that need further treatment to reduce the hold-up of the required WWTP.

• In-Process modifications, which are changes performed on the process such as the introduction of newer technology, substitution of a hazardous raw material, performing process optimization and control.

• End-of-pipe (EoP) measures, which involve treatment of the pollutant or its separation for further disposal. Whereas in-plant and in-process modifications usually have an economic return on investment, end-of-pipe measures will be performed for the sole purpose of compliance with the laws without economic.

Egyptian Environmental Laws do not require water and energy conservation measures. These measures have been considered in this manual since resource depletion and hence conservation is a worldwide-recognized environmental issue that could be implemented in Egypt in the near future. Water conservation measures can lead to higher concentrations of pollutants in the effluent streams. Both energy and water conservation measures will provide both financial and economic benefits.

The term Cleaner Production (CP) refers to the same concepts of pollution reduction through in-process, in-plant and resource conservation, in contradistinction to end-of-pipe treatment. In many cases, the adoption of CP can eliminate the need for (EoP) treatment.

The paints industry sector has a great potential for implementation of cleaner technology measures. Newly installed factories employing manpower above 100 has acquired relatively newer technologies, which need little in-process or in-plant modifications and are carrying out end-of-pipe treatment to meet the requirement of environmental laws. However, medium size enterprises as well as public sector companies badly need the 3 types of modifications. Small private enterprises are using primitive technologies.

Mitigation measures in paints industry vary from in-process modification or recovery of solvents especially used in cleaning purpose.

The following CP and EoP measures have been identified for the paints industry.

Air pollution Abatement Measures

Flue gases Particulate matter in flue (exhaust) gases are due the ash and heavy metal content of the fuel, low combustion temperature, low excess oxygen level, high flow rate of flue gases. Sulfur dioxide is due to the sulfur content of the fuel. Nitrogen oxides are formed when maximum combustion temperature and high excess oxygen. Carbon monoxide is formed when incomplete combustion occurs at low air to fuel ratio.

The following measures can be adopted to minimize air pollution from flue (exhaust) gases:

• Replace Mazot by solar or natural gas. Mazot is high in sulfur content.

• Regulate the fuel to air ratio for an optimum excess air that ensures complete combustion of carbon monoxide to dioxide.

• Keep the combustion temperature at a moderate value to minimize particulate matter and nitrogen oxides formation.

Work Environment Pollution Abatement Measures

VOCs

emissions • Using VOCs control equipment such as; absorbents (activated charcoal)/ biofilters

on exhaust systems, water scrubbers should be implemented where necessary to achieve acceptable odor quality for nearby residents.

• During equipment cleaning process, solvents are released to air. This emissions could be minimized through closing off the immediate area around the axles, and

also during operation for dissolvers and stirring equipment.

• Reduction of the use of open strainers (closed filling system).

• Covering of some containers could prevent the evaporation of solvents into air.

• Using mixing system by vibration rather than by stirring. The lake of a shaft holding a stirrer or a paddle means that the coating and solvent can be gently blended in a completely sealed vessel.

Particulates

emissions • Using control equipment such as; Fabric filters should be used to control

particulates, from the process of charging pigments and fillers to the mixers, to below 50 milligrams per normal cubic meter (mg/Nm3) .

• Using of pigments in the form of pastes (premixed with resins) could be used instead of powdered pigments, to minimize particulate emissions during pigments charging and mixing processes.

• Using of closed equipment (mixers, vessels, mills, and tanks), to prevent the fugitive emissions (VOCs and particulates) of the raw materials in the work place.

Water Pollution Abatement Measures

Equipment cleaning is considered the major source of pollution (liquid waste) in paints industry, hence reducing cleaning process is a useful way for pollution control. The following are some ways for liquid waste control:

In-plant

modifications • Elimination of unnecessary intermediate storage tanks, to minimize the amount

of spent solvents generated from the cleaning of these tanks.

• Recycling from intermediate tank directly to the mill instead of using recycling tank, which lead to reducing the pollution (liquid waste) resulting from cleaning of the removed tank.

• Using high efficiency mills, which allows no need for recycling tank.

• Using centrifugal clarifier instead of filter press, to minimize losses (spills and leaks) occur during recycling of the filtrate to the intermediate tank. This will accordingly improve the quality of the wastewater.

• Using high-pressure jets for cleaning of tanks to enhance cleaning process, so reducing the amount of liquid wastes (solvents and caustic solutions) generated from cleaning process.

• Using manual skimmers for removing materials (paints) stuck to the tanks or container walls, before cleaning with solvent or caustic soda solution. This reduces the amount of liquid wastes used in cleaning, and the removed sticky materials could be recycled. Also mechanical skimmers can be used for tubes cleaning.

• Using Teflon-lined tanks to reduce materials sticking to their walls.

• Segregation of sewer systems for liquid wastes, generated from water- based paints production line and solvents-based production line, as this leads to more efficient recycling.

• In all cases, it is recommended the industrial liquid waste discharged separately from domestic wastes as they differ in the pollutant nature.

• The installation of product-capture systems for filling machines can reduce product losses.

• Implementation of a quality control system such as HACCP (Hazard Analysis & Critical Control Point) is recommended to minimize waste.

In-process

modifications • In solvent-based paints production line;

- Random choice of the cleaning solvent could be replaced by an evaluation process, leading to a choice of one single solvent for all tanks and equipment cleaning.

- Schedule the production runs and modify the manufacturing procedures to minimize or eliminate the use of wash solvent.

- Reuse of cleaning solvents (spent solvents) many times, hence reducing the solvent consumption. After that, the solvent can be regenerated distilled and recycled for use in dilution or cleaning.

- Spent solvent could be recovered through distillation process, with about 90% solvent yield achievable from the still, and 10% sludge (removed paints). This sludge could be used in the production of a new paint product (a primer).

• In Water-based paints production line;

- Using washing liquids (caustic solutions), generated from cleaning of mills and packing machines, in dilution of next batch.

- Scheduling operations to produce light color first then dark color paints to reduce the need for equipment cleaning. For white paints we can use intermediate tank to minimize the washing operations.

- In acrylic paints production line; Wash water generated from white acrylic paint manufacture could be reused in the next production run. Also the wastewater generated from the colored acrylics could also be stored for reuse in the next production run.

• In all production line;

- Appling quality assurance to reduce the possibility of errors in paints preparation.

- Using counter current cleaning operations to reduce the amount of water or solvent used.

- Cleaning the tanks directly after production step to prevent materials sticking into walls. This means coordination between the production steps and cleaning operation.

- Reusing the rejected or off-spec. paints in new batches.

- Raw materials substitution; replacing the toxic pigments or dyes such as lead and chromium compounds by another non-toxic ones such as organic dyes or iron oxides.

- Controlling raw materials stock using computerized system, which facilitate the detection of any leak in the initial stages and indicate the sources of solid waste pollutants.

- Implementation of a control system involving pressure regulators on the steam lines, temperature controllers, flow controllers…

- Change from batch processes into continuous ones.

- Modernize the equipment and upgrade the system.

- Introduce new environmentally friendly products (water-bases paints) to

increase sales and minimize pollution.

- Improving raw materials handling, to prevent spills occur during manual unpacking of sacks and containers, and training of personnel to insure complete unpacking of containers.

- Integration (acidic and alkaline streams), and segregation of sewer lines of water and solvent based paints, to minimize treatment needs and ensure compliance with the environmental laws, can be an option for many factories. In some cases where there are several discharge points from the factory, mixing of the streams could lead to compliance. In other cases where treatment is imperative some streams could be segregated and discharged without violation. The remaining streams will require a treatment unit of small capacity.

End-of-pipe

treatment

Because of the typically high content of suspended solids, TDS, TSS, O&G, COD, BOD, pH, and temp., in the paints industry waste-streams, end-of-pipe treatment frequently involves settling tanks and biological treatment. Pretreatment of effluents is required, it is normally followed by biological treatment.

1)Water-based

paints

The wastewater generated from the water-based paints production line is characterized by high values of BOD, COD, S.S, TSS, and TDS. Therefore, the end-of-pipe treatment could be as follows:

• Collection and flow equalization,

• Precipitation, using coagulants and flocculants (such as; lime, alum,…), in a homogenizing tank equipped with mixer, followed by a sedimentation tank to allow the time needed for reactions of chemicals to precipitate the dissolved solids.

• Decantation for removal of generated sludge, and drying of sludge using filter press.

• Filtration using activated carbon filter, to remove any entrained solids.

2) Resins

production line

The wastewater generated from the resin production line, contain xylene and other organic compounds, this wastewater could be incinerated in the Dow-therm oil heaters instead of the fuel (Mazot or Solar).

3) Solvent-

based paints

The spent solvent generated from equipment cleaning, in the solvent-based production line, could be recovered by vacuum distillation of the spent solvent, then condensation of solvent vapors. The solvent can be recycled for reuse in dilution or cleaning.

The sludge (precipitates) generated from the solvent recovery process could be dried and safely disposed into a landfill.

Abatement Measures for Solid Waste Pollution

Scrap from workshops and garage

• Scrap metals are collected and sold.

Solid wastes from processes

Hazardous solid wastes sources includes chemicals sacs, packs, empty barrels, filters cartridge, materials spills, and precipitates from liquid wastes (caustic solutions and solvents) clarification by settling or distillation. The following are some ways for reducing solid waste pollution.

• Planning of packaging systems to avoid solid waste and/or to facilitate recycling of packages or packaging wastes.

• Separating hazardous solid waste from non-hazardous ones. This means

separating sacs or packs containing hazardous materials such as lead or chromium compounds, from that free from such compounds.

• Gathering the empty sacs containing hazardous compounds in plastic bags, to prevent the spread of hazardous dust in the atmosphere.

• Using water-soluble sacs in making water-based paints can reduce the amount of waste sacs, as the whole sacs can be dissolved in water with their content. This could be done with pigments containing mercury compounds, or in making paints containing anti-fungi compounds, but this in turn affect the degree of shininess of paints.

• Using bag filters instead of cartridge filters, as the spent cartridge should be safely disposed into a landfill or burned, while the bag filters can be used many times. In addition, the bag filters can be washed by water or solvents, for recovery of the toxic material, and recycling of these materials with dilution liquids (solvents and thinners), then the filter bags can be dried and disposed safely.

• Using metallic screens for paints filtration process, which can be reused after cleaning with water or solvent.

• Handling of solid materials spills, by dry cleaning methods such as; vacuum cleaner, or by wet saw dust, to prevent spreading of these materials. Also the personnel should be trained to close the grills of the internal sewer system, when leaks or spills occur, to reduce the pollution load discharged to the sewer.

• Using automatic methods for unpacking of sacs, which prevent dust spreading in the workplace, also can reduce solid materials spills.

• Cleaning pollutants, from empty sacks and containers by solvent, should be done before storing or selling.

• Solid wastes, generated from spent solvent distillation or pretreatment of alkali solutions, used in cleaning and washing, could be safely disposed into a landfill or burned.

• Generally, recycling of incoming raw materials packaging like steel barrels, plastic barrels, nonce-use pallets, corrugated, paper bags, shrink plastic (PE) and transition to storage of raw materials in tanks. The reuse of these packages is a measure to reduce costs and amounts of waste.

Sludges from

water and

wastewater

treatment

• Effluent treatment processes generate sludge. It can also be hazardous to health by absorbing pathogens that multiply in this favorable medium and toxins. It also contain traces of heavy metals. Raw sludge is saturated with water, should be de-watered and disposed of into landfills.

• Sludge also generated from water treatment unit due to addition of lime and chemicals to water.

Water and Energy Conservation

Water and sewer service costs have been rising, and these increases can cut into profits. Using water more efficiently can help counter these increases.

Water

Conservation • Install water meters and monitor water use

• Use automatic shut-off nozzles and mark hand-operated valves so that open, close and directed-flow positions are easily identified.

• Use high-pressure, low-volume cleaning systems, such as CIP (clean in place) for washing equipment.

• Install liquid level controls with automatic pump stops where overflow is likely to occur.

• Recycle cooling water through cooling towers.

• Minimize spills on the floor minimizes floor washing.

• Repair leaks.

• Handle solid waste dry.

• Recycle steam condensate whenever economically viable.

Energy

conservation

measures

• Insulation of steam lines.

• Installation of steam traps.

• Repair or replace steam valves.

• Use the optimum excess air to perform efficient combustion process

• Install pressure regulators on steam lines.

• Return steam condensate.

• Improvement of power factor and electrical circuits.

Annex D - 2007 Top Companies Report

# Company Sales # Company Sales

1 Akzo Nobel (The Netherlands) 7.8 $ Billion 35 Berger (India) 306 $ million

2 Henkel (Germany) 6.921$ Billion 36 Helios (Slovenia) 303 $ million

3 ICI Group (UK) 6.387$ Billion 37 Kelly-Moore (USA) 300 $ million

4 Sherwin-Williams (USA) 6.348$ Billion* 38 Dunn-Edwards (USA) 298 $ million*

5 PPG Industries 6.324$ Billion 39 Yasar (Turkey) 285 $ million*

6 DuPont (USA) 4.095$ Billion 40 Renner (Brazil) 282 $ million*

7 RPM (USA) 3.008 $ Billion 41 Dyrup (Denmark) 280 $ million

8 Valspar (USA) 2.978 $ Billion 42 Altana (Germany) 277 $ million

9 BASF Coatings (Germany) 2.935$ Billion 43 National Paints (Jordan) 260 $ million

10 SigmaKalon (The Netherlands) 2.386 $ Billion 44 DIC (Japan) 250 $ million

11 3M (USA) 2.2$ Billion* 45 CIN (Portugal) 248 $ million

12 Kansai Paint (Japan) 1.795 $ Billion 46 Flugger (Denmark) 244 $ million

13 Nippon Paint (Japan) 1.732 $ Billion* 47 Rock Paint (Japan) 211 $ million*

14 Sika (Switzerland) 1.5 $ Billion* 48 Grebe Group (Germany) 210 $ million*

15 H.B. Fuller (USA) 1.472$ Billion 49 Tigerwerk (Austria) 188 $ million*

16 Comex (Mexico) 1.4 $ Billion 50 Yung Chi (Taiwan) 182 $ million*

17 Masco (USA) 1.277 $ Billion 51 Industrias Titan (Spain) 180 $ million*

18 Jotun (Norway) 1.249 $ Billion 52 DPI (South Korea) 166 $ million

19 AB. Wilh. Becker (Sweden) 1.19$ Billion* 53 Cloverdale Paint(Canada) 165 $ million*

20 DAW (Germany) 1.13$ Billion 54 Shinto Paint (Japan) 161 $ million*

21 Rohm and Haas (USA) 1.055$ Billion 55 M.A.B. Paints (USA) 155 $ million*

22 Hempel (Denmark) 980 $ million 56 Ace Paint (USA) 150 $ million*

23 Benjamin Moore (USA) 950 $ million* 57 Vogel Paint (USA) 147 $ million

24 Asian Paints (India) 893 $ million 58 Boero Group (Italy) 145 $ million

25 Kemira Coatings (Finland) 707 $ million 59 Looser Holding AG (Switzerland) 141 $ million

26 Forbo (Switzerland) 584$ million 60 Toa Paints (Thailand) 140 $ million*

27 Brillux (Germany) 538 $ million* 61 Tohpe (Japan) 133 $ million*

28 Dai Nippon Toryo (Japan) 516 $ million* 62 Empils (Russia) 116.2 $ million

29 Chugoku Marine Paint (Japan) 453$ million* 63 Russian Coatings (Russia) 116.1$ million

30 Orica (Australia) 403 $ million 64 Spraylat (USA) 110 $ million

31 Barloworld (South Africa) 400$ Billion* 65 Inver SpA (Italy) 106 $ million

32 Arch (USA) 358$ million 66 RedSpot (USA) 105 $ million*

33 KCC (South Korea) 350 $ million* 67 Tnemec (USA) 96 $ million

34 Wattyl (Australia) 320$ million

* Estimated sales

Source: www.coatings World.com ----July 2007

Annex E: Paints Exports by HS Codes and countries

1

�� د�� ا�! � ��و�ر 2007- 12-31ا�� 2005-1-��1 )دو�� /�� ( ا�� ت ا��درات ا�

�" �� ا�#��- 6

�!$� ا� 2005 2006 2007 Grand Total

320810 � ! �� ا%�& $ 3,354,572 $ 1,624,488 $ 627,477 $ 1,102,608

�� أورو�� 320810& $ 1,052,130 $ 859,195 $ 28,107 $ 164,828

�� أ� � 320810& $ 62,792 $ - $ 45,008 $ 17,784

320810 � 9,612,274 $ 3,509,445 $ 3,519,612 $ 2,583,216 $ � ا��ول ا�� &

14,668 $ - $ 34 $ 14,634 $ دول ا*�ي 320810

�� ا�� 320810& $ 14,096,436 $ 5,993,128 $ 4,220,238 $ 3,883,070

320820 � ! �� ا%�& $ 603,055 $ 235,061 $ 144,408 $ 223,586

�� أورو�� 320820& $ 321,770 $ 227,412 $ 66,312 $ 28,047

�� أ� � 320820& $ - $ 9,661 $ - $ 9,661

�� ا��ول ا�� 320820& $ 2,014,451 $ 934,821 $ 488,985 $ 590,645

�� دول ا*�ي 320820& $ - $ - $ - $ -

�� ا�� 320820& $ 2,948,938 $ 1,397,294 $ 709,366 $ 842,278

320890 � ! �� أ%�& $ 6,160,050 $ 2,126,123 $ 3,513,299 $ 520,629

�� اورو�� 320890& $ 2,144,947 $ 1,697,765 $ 265,428 $ 181,754

�� أ� � 320890& $ 771,830 $ 28,444 $ 742,584 $ 802

�� ا��ول ا�� 320890& $ 22,824,830 $ 10,277,511 $ 8,380,139 $ 4,167,180

320890 آ��ا &�� ا�#�ا� � و

180,626 $ 81,745 $ 92,561 $ 6,320 $ ودول ا*�ي

�� ا�� 320890& $ 32,082,283 $ 14,211,588 $ 12,994,010 $ 4,876,685

320910 � ! �� أ%�& $ 242,639 $ - $ 19,157 $ 223,482

�� أورو�� 320910& $ 104,684 $ - $ - $ 104,684

�� أ� � 320910& $ - $ - $ - $ -

�� ا��ول ا�� 320910& $ 1,409,151 $ 110,152 $ 309,987 $ 989,012

�� دول ا*�ي 320910& $ - $ - $ - $ -

�� ا�� 320910& $ 1,756,473 $ 110,152 $ 329,144 $ 1,317,178

320990 � ! �� ا%�& $ 73,895 $ - $ 64,160 $ 9,735

�� أورو�� 320990& $ - $ - $ - $ -

�� أ� � 320990& $ - $ 34,690 $ 9,279 $ 25,410

�� ا��ول ا�� 320990& $ 481,837 $ 202,043 $ 65,257 $ 214,537

�� دول ا*�ي 320990& $ 10 $ - $ - $ 10

�� ا�� 320990& $ 590,432 $ 211,322 $ 154,828 $ 224,282

Annex E: Paints Exports by HS Codes and countries

2

321000 � ! �� ا%�& $ 12,108,894 $ 7,902,467 $ 3,717,185 $ 489,242

�� أورو�� 321000& $ 1,384,976 $ 865,545 $ 292,904 $ 226,527

�� أ� � 321000& $ 1,141,034 $ 700,902 $ 146,749 $ 293,383

�� ا��ول ا�� 321000& $ 39,677,693 $ 24,818,960 $ 10,605,045 $ 4,253,689

�� دول ا*�ي 321000& $ 9,548,430 $ 4,235,904 $ 3,711,928 $ 1,600,598

�� ا�� 321000& $ 63,861,027 $ 38,523,777 $ 18,473,811 $ 6,863,439

321410 � ! �� ا%�& $ - $ 114,352 $ 55,740 $ 58,612

�� اورو�� 321410& $ - $ 11,610 $ - $ 11,610

�� أ� � 321410& $ - $ - $ - $ -

�� ا��ول ا�� 321410& $ 100,826 $ 30,240 $ 43,599 $ 26,987

�� دول ا*�ي 321410& $ - $ - $ 57,194 $ 57,194

�� ا�� 321410& $ 283,982 $ 143,174 $ 113,821 $ 26,987

321490 � ! �� ا%�& $ 218,688 $ 5,202 $ 209,344 $ 4,143

�� أورو�� 321490& $ 210,210 $ 150,052 $ 38,369 $ 21,789

�� أ� � 321490& $ 3,254 $ - $ - $ 3,254

�� ا��ول ا�� 321490& $ 667,617 $ 326,329 $ 144,201 $ 197,087

�� دول ا*�ي 321490& $ - $ - $ - $ -

�� ا�� 321490& $ 1,099,770 $ 481,583 $ 391,913 $ 226,273

Annex “F”

Table F.1: Paint and Coating Products HS Code Description Customs Tariff**

32 Tanning or dyeining extracts; Tanning & their derivatives; Dyes, Pigments & other coloring matter; Paints & varnishes; Putty & other Mastics; Inks

3208 Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter.

320810 Paints & varnishes (incl. enamels & lacquers) based on polyesters 10%

320820 Paints & varnishes (incl. enamels & lacquers) based on acrylic/vinyl polymers 10%

320890 Paints & varnishes (incl. enamels & lacquers, excl. of 3208.10 & 3208.20) based on synthetic polymers/chemically modified natural polymers, dispersed/dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter.

10%

3209 Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.

320910 Paints & varnishes (incl. enamels & lacquers) based on acrylic/vinyl polymers 10%

320990 Paints & varnishes (incl. enamels & lacquers) based on synthetic polymers/chemically modified natural polymers other than acrylic/vinyl polymers, dispersed/dissolved in an aqueous medium

10%

3210 Other paints and varnishes (including enamels, lacquers and distempers); prepared water pigments of a kind used for finishing leather.

321000 Paints & varnishes (incl. enamels, lacquers & distempers; excl. of 32.08 & 32.09); prepared water pigments of a kind used for finishing leather

20%

3214 Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings; non-refractory surfacing preparations for façades, indoor walls, floors, ceilings or the like.

321410 Glaziers' putty, grafting putty, resin cements, caulking comps. & other mastics; painters' fillings 10%

321490 Non-refractory surfacing preparations for facades/indoor walls/floors/ceilings/the like (other?) 10%

** Source: The Presidential Decree No. 39/2007; “Customs Tariff According to the Amendments of the Harmonized System 2007” and its amendment on 2 April 2008, Ministry of Finance, Arab Republic of Finance. *** nes= not elsewhere specified

Table F.2: Paint and coating Intermediate Products HS Code Description Customs

Tariff**

39 Plastics & Articles Thereof

3903 Polymers of styrene, in primary forms

390320 Styrene-acrylonitrile (SAN) copolymers, in primary forms Free

3905 Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms

390512 Poly(vinyl acetate), in aqueous dispersion, in primary forms 2%

390519 Poly(vinyl acetate) other than in aqueous dispersion, in primary forms 2%

390521 Vinyl acetate copolymers, in aqueous dispersion, in primary forms 2%

390529 Vinyl acetate copolymers other than in aqueous dispersion, in primary forms 2%

3907 Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resin, polyallyl esters and other polyesters, in primary forms

390720 Polyether's other than polyacetals, in primary forms 2%

390730 Epoxide resins, in primary forms 5%

390750 Alkyd resins, in primary forms

39075010 - of long or medium chain 10%

390791 Polyesters (excl. of 3907.10-3907.60), unsaturated, in primary forms 5%

390799 Polyesters (excl. of 3907.10-3907.91), in primary forms (other?) 5%

3908 Polyamides in primary forms

390810 Polyamide-6/ -11/ -12/ -6,6/ -6,9/ -6,10/ -6,12, in primary forms 2%

390890 Polyamides (excl. of 3908.10), in primary forms 2%


Table F.3: Paint and coating Raw materials HS Code Description Customs Tariff**

32 Tanning or dyeining extracts; Tanning & their derivatives; Dyes, Pigments & other coloring matter; Paints & varnishes; Putty & other Mastics; Inks

3204 Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as lumin

320417 Pigments & preparations based thereon 2%

3206 Other colouring matter; preparations as specified in Note 3 to this Chapter, other than those of heading 32.03, 32.04 or 32.05; inorganic products of a kind used as luminophores, whether or not chemically defined

320611 Pigments & preparations based on titanium dioxide, containing 80%/more by weight of titanium dioxide calc. on the dry matter 2%

320619 Pigments & preparations based on titanium dioxide other than those containing 80%/more by weight of titanium dioxide calc. on the dry matter

2%

3207 Prepared pigments, prepared opacifiers and prepared colours, vitrifiable enamels and glazes, engobes (slips), liquid lustres and similar preparations, of a kind used in the ceramic, enamelling or glass industry; glass frit and other glass, in the form of

320710 Prepared pigments, prepared opacifiers, prepared colours & similar preparations 10%

320720 Vitrifiable enamels & glazes, engobes (slips) & similar preparations 5%

3211 Prepared driers.

321100 - Prepared driers

32110010 -- in packages of weight not less than 25 K.G. 5%

32110090 -- Other 10%

3212 Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in liquid or paste form, of a kind used in the manufacture of paints (including enamels); stamping foils; dyes and other coloring matter put up in forms or packing for reta

321290 Pigments (incl. metallic powders & flakes) dispersed in non-aqueous media/in liquid/paste form, of a kind used in the manufacture of paints (incl. enamels); dyes & other coloring matter put up in forms/packing-RS

2%

38 Miscellaneous Chemical Products

3803 Tall oil, whether or not refined 5%

3805 Gum, wood or sulphate turpentine and other terpenic oils produced by the distillation or other treatment of coniferous woods; crude dipentene; sulphite turpentine and other crude para-cymene; pine oil containing alpha-terpineol as the main constituent.

380510 - Gum, wood or sulphate turpentine oils 5%

HS Code Description Customs Tariff**

380590 - Other 5%

3806 Rosin and resin acids, and derivatives thereof; rosin spirit and rosin oils; run gums.

380610 - Rosin and resin acids 5%

380620 - Salts of rosin, of resin acids or of derivatives of rosin or resin acids, other than salts of rosin adducts 10%

380690 - other 10%

3814 Organic composite solvents & thinners; prepared paint or varnish removers

381400 Organic composite solvents & thinners, nes***; or prepared paint/varnish removers 2%

3815 Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included – supported catalysts

381511 -- With nickel or nickel compounds as the active substance 5%

381512 -- With precious metal or precious metal compounds as the active substance 5%

381519 -- other 5%

381590 - other 5%

3823 Industrial mono-carboxylic fatty acids; acid oils from refining; industrial fatty alcohols. – industrial monocarboxylic fatty acids; acid oils from refining

382311 -- Stearic acid 5%

382312 -- Oleic acid 5%

382313 -- Tall oil fatty acids 5%

382319 -- Other 5%

382370 - Industrial fatty alcohols 5%

39 Plastics & Articles Thereof

3909 Amino-resins, phenolic resins and polyurethanes, in primary forms.

390910 Urea resins, in primary forms; thiourea resins, in primary forms 2%

390920 Melamine resins, in primary forms 390930 - Amino-resins (excl. of 3909.10 & 3910.20), in primary forms 10%

390940 Phenolic resins, in primary forms

39094010 - Phenolic moulding compounds 10%

39094090 - Other 2%

390950 Polyurethanes, in primary forms 2%

HS Code Description Customs Tariff**

3912 Cellulose and its chemical derivatives, not elsewhere specified or included, in primary forms.

391220 Cellulose nitrates (incl. collodions), in primary forms

39122010 - Wet with alchole 10%

39122090 - other 2%

391231 Carboxymethyl cellulose & its salts, in primary forms 5%


AAnnnneexx GG:: PPaaiinnttss FFiinnaall aanndd IInntteerrmmeeddiiaattee PPrroodduuccttss aanndd RRaaww MMaatteerriiaallss

G-1: List of Paints Products

(with HS 1992 codes as a reference)

3208 - Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter.

320810 - Paints & varnishes (incl. enamels & lacquers) based on polyesters

320820 - Paints & varnishes (incl. enamels & lacquers) based on acrylic/vinyl polymers

320890 - Paints & varnishes (incl. enamels & lacquers, excl. of 3208.10 & 3208.20) based on synthetic polymers/chemically modified natural polymers, dispersed/dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter.

3209 - Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.


320990 - Paints & varnishes (incl. enamels & lacquers) based on synthetic polymers/chemically modified natural polymers other than acrylic/vinyl polymers, dispersed/dissolved in an aqueous medium

3210 - Other paints and varnishes (including enamels, lacquers and distempers); prepared water pigments of a kind used for finishing leather.

321000 - Paints & varnishes (incl. enamels, lacquers & distempers; excl. of 32.08 & 32.09); prepared water pigments of a kind used for finishing leather

3214 - Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings; non-refractory surfacing preparations for façades, indoor walls, floors, ceilings or the like.

321410 - Glaziers' putty, grafting putty, resin cements, caulking comps. & other mastics; painters' fillings

321490 - Non-refractory surfacing preparations for facades/indoor walls/floors/ceilings/the like

G-2: List of Paints Intermediate Products (with HS 1992 codes as a reference)


390320 - Styrene-acrylonitrile (SAN) copolymers, in primary forms

3905 - Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms.

390512 - Poly(vinyl acetate), in aqueous dispersion, in primary forms

390519 - Poly(vinyl acetate) other than in aqueous dispersion, in primary forms

390521 - Vinyl acetate copolymers, in aqueous dispersion, in primary forms

390529 - Vinyl acetate copolymers other than in aqueous dispersion, in primary forms


390610 - Poly(methyl methacrylate), in primary forms

390690 - Acrylic polymers other than poly(methyl methacrylate), in primary forms

3907 - Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resin, polyallyl esters and other polyesters, in primary forms

390720 - Polyether's other than polyacetals, in primary forms

390730 - Epoxide resins, in primary forms

390750 - Alkyd resins, in primary forms

390791 - Polyesters (excl. of 3907.10-3907.60), unsaturated, in primary forms

390799 - Polyesters (excl. of 3907.10-3907.91), in primary forms


2

390810 - Polyamide-6/ -11/ -12/ -6,6/ -6,9/ -6,10/ -6,12, in primary forms

390890 - Polyamides (excl. of 3908.10), in primary forms

G-3: List of Paints Raw Materials (with HS 1992 codes as a reference)



3212 - Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in liquid or paste form, of a kind used in the manufacture of paints (including enamels); stamping foils; dyes and other coloring matter put up in forms or packing's for reta

321290 - Pigments (incl. metallic powders & flakes) dispersed in non-aqueous media/in liquid/paste form, of a kind used in the manufacture of paints (incl. enamels); dyes & other colouring matter put up in forms/packing-RS


390910 - Urea resins, in primary forms; thiourea resins, in primary forms

390920 - Melamine resins, in primary forms 390930 - Amino-resins (excl. of 3909.10 & 3910.20), in primary forms

390940 - Phenolic resins, in primary forms

390950 - Polyurethanes, in primary forms




3805 - Gum, wood or sulphate turpentine and other terpenic oils produced by the distillation or other treatment of coniferous woods; crude dipentene; sulphite turpentine and other crude para-cymene; pine oil containing alpha-terpineol as the main constituent.



3815 - Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included.

3823 - Industrial mono-carboxylic fatty acids; acid oils from refining; industrial fatty alcohols.

3204 - Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as lumin

320417 - Pigments & preparations based thereon

3206 - Other colouring matter; preparations as specified in Note 3 to this Chapter, other than those of heading 32.03, 32.04 or 32.05; inorganic products of a kind used as luminophores, whether or not chemically defined.

320611 - Pigments & preparations based on titanium dioxide, containing 80%/more by weight of titanium dioxide calc. on the dry matter

320619 - Pigments & preparations based on titanium dioxide other than those containing 80%/more by weight of titanium dioxide calc. on the dry matter

3207 - Prepared pigments, prepared opacifiers and prepared colours, vitrifiable enamels and glazes, engobes (slips), liquid lustres and similar preparations, of a kind used in the ceramic, enamelling or glass industry; glass frit and other glass, in the form of

320710 - Prepared pigments, prepared opacifiers, prepared colours & similar preparations

320720 - Vitrifiable enamels & glazes, engobes (slips) & similar preparations

AAnnnneexx GG:: PPaaiinnttss FFiinnaall aanndd IInntteerrmmeeddiiaattee PPrroodduuccttss aanndd RRaaww MMaatteerriiaallss

G-1: List of Paints Products

(with HS 1992 codes as a reference)

3208 - Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter.

320810 - Paints & varnishes (incl. enamels & lacquers) based on polyesters


320890 - Paints & varnishes (incl. enamels & lacquers, excl. of 3208.10 & 3208.20) based on synthetic polymers/chemically modified natural polymers, dispersed/dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter.

3209 - Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.


320990 - Paints & varnishes (incl. enamels & lacquers) based on synthetic polymers/chemically modified natural polymers other than acrylic/vinyl polymers, dispersed/dissolved in an aqueous medium

3210 - Other paints and varnishes (including enamels, lacquers and distempers); prepared water pigments of a kind used for finishing leather.

321000 - Paints & varnishes (incl. enamels, lacquers & distempers; excl. of 32.08 & 32.09); prepared water pigments of a kind used for finishing leather

3214 - Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings; non-refractory surfacing preparations for façades, indoor walls, floors, ceilings or the like.

321410 - Glaziers' putty, grafting putty, resin cements, caulking comps. & other mastics; painters' fillings

321490 - Non-refractory surfacing preparations for facades/indoor walls/floors/ceilings/the like

G-2: List of Paints Intermediate Products (with HS 1992 codes as a reference)


390320 - Styrene-acrylonitrile (SAN) copolymers, in primary forms

3905 - Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in primary forms.

390512 - Poly(vinyl acetate), in aqueous dispersion, in primary forms

390519 - Poly(vinyl acetate) other than in aqueous dispersion, in primary forms

390521 - Vinyl acetate copolymers, in aqueous dispersion, in primary forms

390529 - Vinyl acetate copolymers other than in aqueous dispersion, in primary forms


390610 - Poly(methyl methacrylate), in primary forms

390690 - Acrylic polymers other than poly(methyl methacrylate), in primary forms

3907 - Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resin, polyallyl esters and other polyesters, in primary forms

390720 - Polyether's other than polyacetals, in primary forms

390730 - Epoxide resins, in primary forms

390750 - Alkyd resins, in primary forms

390791 - Polyesters (excl. of 3907.10-3907.60), unsaturated, in primary forms

390799 - Polyesters (excl. of 3907.10-3907.91), in primary forms


2

390810 - Polyamide-6/ -11/ -12/ -6,6/ -6,9/ -6,10/ -6,12, in primary forms

390890 - Polyamides (excl. of 3908.10), in primary forms

G-3: List of Paints Raw Materials (with HS 1992 codes as a reference)



3212 - Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in liquid or paste form, of a kind used in the manufacture of paints (including enamels); stamping foils; dyes and other coloring matter put up in forms or packing's for reta

321290 - Pigments (incl. metallic powders & flakes) dispersed in non-aqueous media/in liquid/paste form, of a kind used in the manufacture of paints (incl. enamels); dyes & other colouring matter put up in forms/packing-RS


390910 - Urea resins, in primary forms; thiourea resins, in primary forms

390920 - Melamine resins, in primary forms 390930 - Amino-resins (excl. of 3909.10 & 3910.20), in primary forms

390940 - Phenolic resins, in primary forms

390950 - Polyurethanes, in primary forms




3805 - Gum, wood or sulphate turpentine and other terpenic oils produced by the distillation or other treatment of coniferous woods; crude dipentene; sulphite turpentine and other crude para-cymene; pine oil containing alpha-terpineol as the main constituent.



3815 - Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included.

3823 - Industrial mono-carboxylic fatty acids; acid oils from refining; industrial fatty alcohols.

3204 - Synthetic organic colouring matter, whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on synthetic organic colouring matter; synthetic organic products of a kind used as fluorescent brightening agents or as lumin

320417 - Pigments & preparations based thereon

3206 - Other colouring matter; preparations as specified in Note 3 to this Chapter, other than those of heading 32.03, 32.04 or 32.05; inorganic products of a kind used as luminophores, whether or not chemically defined.

320611 - Pigments & preparations based on titanium dioxide, containing 80%/more by weight of titanium dioxide calc. on the dry matter

320619 - Pigments & preparations based on titanium dioxide other than those containing 80%/more by weight of titanium dioxide calc. on the dry matter

3207 - Prepared pigments, prepared opacifiers and prepared colours, vitrifiable enamels and glazes, engobes (slips), liquid lustres and similar preparations, of a kind used in the ceramic, enamelling or glass industry; glass frit and other glass, in the form of

320710 - Prepared pigments, prepared opacifiers, prepared colours & similar preparations

320720 - Vitrifiable enamels & glazes, engobes (slips) & similar preparations

Annex H

��א��

��א��א��

��א��

Arab Republic of Egypt

The Cabinet of Ministries

Egyptian Environmental Affairs Agency

�� )�(

Environmental Screening Form B

�� (General Information )

1. �� !� "�#$ :

(Project Title)

2. �� !� &�'��(: ) )*# / ,-�. / �/��# /��0 / 123(

( Nature of project) ( Residential / Commercial / Touristic / Industrial/ others)

3. �56��7!�)89:�� ;<=�(

( Investor / applicant ) �� "��#$> �� !� )89:�� ;<��=��:(

(Project Developer or applicant) ��?0 :

(reference) @��'��:

( Address) @�?�9�� "A- : BC��?�� "A- :

(Phone No.) ( Fax No.)

5*�#� "�D ��9'�&�� @��E F�GH I��7� &:#�� J�

Information to be completed by the EEAA officials

89:�� ;<=�� KD-�L : / / M�-�� KD-�L :/ /

Date of application Receival Date

<�=�� N797� "A- :

Serial No.

♦♦♦♦ &?9*L &D�D<=�� I�!� O�-),�!� ��P��(

( Estimated Capital Investment, L.E.) ♦♦♦♦ �Q�� R�S�� TU &�V!� &GP�

(Concerned Licencing Authority& Address) ♦♦♦♦ �� !� �� )<D<H/ W#�L (

( Project Type, New/Extension )

2

♦♦♦♦ �� !� X<�� WA��!� KD-�� !� N/��

Project phases and expected starting dates) ( X�� Y� :

construction N��Z� ��:

( Operation )

�9�=�7!� W#��:

( Future Extension)

4 . �� 59� [H�� 0�(Brief Project description)

♦♦♦♦ �� 59� &�7�\�� R\�]�

( Project basic features )

♦♦♦♦ �� !� ^�<_�

(Objectives)

♦♦♦♦ �� !� ��-`�

(Need for justification)

♦♦♦♦ &�7�\�� *!�

( Basic components )

3

♦♦♦♦ &�<V�7�� H��*��) � �aS<�!� &9��E N�Z �� b\��S� WA�!� b�:c d�L &�e�f�L I�*Eg� h*�� 59C ��e�

��?9V!� &9��E ��H�V!�(

Technological systems (Accompanied as much as possible with layout and Operational charts and diagrams showing inputs & outputs (including wastes)

5 .-��Y� i 1M�Sg!� N\�<��

(alternatives considered) WA��!�(sites)

��H��*��(technologies)

��5�5��(designs)

&�<V�7!� M��!� (materials)

♦♦♦♦ &9j�k �� ! ��#�-M �l��L N_)�_-<� T�f�L X�H�� (

(are there available studies of similar projects: indicate source)

6 . �� !� WA��(Project location and site)

♦♦♦♦ @��'��

(Address)

♦♦♦♦ ; &�9*�� &/�7!�2

(Total Area , m2 ) ) � m-Y� M�<�/ � 2�#��!� � �a�0��!� n��( � W�A�!� �o �ef�� 8#�� "#- O��=U &9?� &:D�S n�l-� X�H��

a� p-��q� ��<V�#Y��f�-(

(Please attach a detailed map with a suitable scale to indicate clearly the site, transportation routes and pipelines, its boundaries and neibouring uses)

7 . X�� n�( � �� !� N/��! [H�� 0�

(A brief description of the construction phases and basic construction methods)

4

&�<V�7!� M��!� raG�#� ,<� � N�Z �� X� �Y� s9/�� X�j� &�<V�7!� �aS<!�

) 59� � ;�]� M��!� t&�� !� &��/ i&�<V�7!� M��!� �CM� ,�SY� �� (

&9��'�� ,<DY� � &A�:�� t 1��!� �aS<�� I�<H �u��1

(Inputs during construction and operation) (for industrial projects, raw materials& for other projects, state kind of resources) Inputs of water, energy, and manpower , see table 1

�aS<!�

Inputs

X� �Y� &9/��

Construction phase

N�Z �� &9/��

Operation phase

1��!�� &�e:# -M��

Water- surface water

1��!�� &�l�H -M��

Water- G

1��!�� ,�S� ��<V�#�

Water - other use

&A�:�� X��G*��

Energy / electricity

&A�:��/M�A��),F�3t890tN\�#(

Energy/ fuel (liquid,solid, gas)

&A�:�� / pM<v�!� -M�!�

Energy / renewable sources

&9��'�� ,<DY�

Manpower

123

Others

I�<H1 : �� Inputs during construction and operation phases

5

7 .N�Z �� X� �Y� s9/�� IaS ��H�V!�

) �\�G�� wL��) :��0 �� ( ,�S� wL�� )�� !� W�x .. (��u I�<H �2(

Outputs during construction and operation phases Endproducts (industrial project) or other outputs (all projects) , see table 2)

��H�V!� ��

Type of output

��j�'��,��l�L ,��?9z �

Emissions, discharges and wastes

X� �Y� &9/��

Construction phase

N�Z �� &9/��

Operation phase

X��_

Air

{D`*�� <�7C� |�j

Sulphur dioxide

&=�� M��

Particulate matter

@�SM

Smoke

6

&e\�-

Odour

X�f�f

Noise

123

other

1��

Water

�e0 ^�0

Sanitation

&��0 ��?9z

Industrial Waste

&�90 ��?9z

Solid waste

}~�

Domestic

��0

Industrial

1�:S ��?9z

Hazardous

I�<H2 : N�Z �� X� �Y� s9/�� IaS ��H�V!�Outputs during construction and

operation

7

8 . ,�S� ��9'� : &�� d9��'�� @��g� &0�S &�� 9'� ,� ) @�2�� &el�*� �a�G7L � @��Y� N�� N6�

...��(

other information deemed important particularly with regard to safeguarding personnel and environment e.g. safety and fire fighting facilities

8

)� ( &:�� &��9� [H�� 0�)&�#�#� ��9'�(

Brief description of the environment (Baseline information)

�G\�S "_� � �� !� &=:! ;�� 0�

General area description and most important features as ♦♦♦♦ &�� &�#�#Y� &�� <]�( Present infrastructure and services)

� 1��!�:

(Water)

� X��G*�� :

(Electricity)

� �e0 ^�0 :

Sewage) (

� &�9�� ?9V!� h� R9V��:

(Solid waste disposal) � ��? �7� :

Hospitals

♦♦♦♦ N6� �� !� &=:U &0�S &'��( �� &#�7/ �� & _ �(��:

Fragile or sensitive ecosystems ( critical or high valued ecosystems) that are present

� &��-�� &D�j�� (�59� �0�

(Description of archeological & historical areas )

� &=:!�� &�5�� (�59� �0�

Description of protected areas ) (

� &�G�l�� &�/��7�� (�59� �0�

( Description of recreational & touristic areas)

9

�H� &�� -�j�� \<�� N�9� (Preliminary analysis of impacts)

1� X��J� &�� )X��J� &�� 9� �Gj�</ N5�� -�j��(

Air Quality ( potential effects on air quality) � X� �Y� &9/�� :

Construction phase � N�Z �� &9/��:

Operation phase

� WA�!�:

Site � p-��q� �(�!�:

( Neighbouring area )

� WA�!� M�</:

(Transboundary)

2� �� !� &=:� h� ��=�� W=L s�� &#�7/ `�'L s�� (�!� �� !� �C � ) �(�!� � O-�<!�t ��? �7!� N6�

&�*7�� ...��(�

Clarify whether projects or sites that are considered sensitive exist nearby the project sites (as hospitals, schools, residential areas ....etc)

10

3� 1��!� &�� Water Quality

^�� t&�l�P� 1��!� t;�<V�#Y� tp�l�� / h� 1��!� �9� ��e9� N* � �� _ �j��# N_�1��!� &�� p-�� &H-M t

(Will the activity cause a significant change on the water availability, use, hydrology, drainage, temperature or quality?)

� � M�H�� Y�5�/� <H�L N_ p�:S M��) �_2jgL � �G��5C � �G�� Tf�(

( Are there existing hazads probabilities - explain type, quantity and impact )

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Date

Annex I

Consultant Name Month year

Egyptian Environmental Affairs Agency Egyptian Environmental Affairs Agency Egyptian Environmental Affairs Agency Egyptian Environmental Affairs Agency

(EEAA)(EEAA)(EEAA)(EEAA)

Egyptian Pollution Abatement Project Egyptian Pollution Abatement Project Egyptian Pollution Abatement Project Egyptian Pollution Abatement Project

(EPAP)(EPAP)(EPAP)(EPAP)

SelfSelfSelfSelf----Monitoring ManualMonitoring ManualMonitoring ManualMonitoring Manual

Paints IndustryPaints IndustryPaints IndustryPaints Industry

Final VersionFinal VersionFinal VersionFinal Version

Prepared by:Prepared by:Prepared by:Prepared by:

EnvironicsEnvironicsEnvironicsEnvironics Management of Environmental SystemsManagement of Environmental SystemsManagement of Environmental SystemsManagement of Environmental Systems

Paints Industry- Self-Monitoring Manual

Environics September 2002 2

September 2002September 2002September 2002September 2002

Egyptian EnvironmEgyptian EnvironmEgyptian EnvironmEgyptian Environmental Affairs Agency ental Affairs Agency ental Affairs Agency ental Affairs Agency

(EEAA)(EEAA)(EEAA)(EEAA)

Egyptian Pollution Abatement Project Egyptian Pollution Abatement Project Egyptian Pollution Abatement Project Egyptian Pollution Abatement Project

(EPAP)(EPAP)(EPAP)(EPAP)

SelfSelfSelfSelf---- Monitoring ManualMonitoring ManualMonitoring ManualMonitoring Manual

Paints IndustryPaints IndustryPaints IndustryPaints Industry

Final VersionFinal VersionFinal VersionFinal Version

Prepared by:Prepared by:Prepared by:Prepared by:

EnvironicsEnvironicsEnvironicsEnvironics Management of Environmental SystemsManagement of Environmental SystemsManagement of Environmental SystemsManagement of Environmental Systems

6 Dokki Street , Dokki - Giza

Tel: 7495686-7495696-7601595

Fax: 3360599

E-mail: [email protected]

September 2002September 2002September 2002September 2002



Table of Contents

Page

1. Introduction 1 1.1 Preface 1

1.1.1 Project Objectives 1 1.1.2 Organization of the Manual 2 2. Description of the Industry 3 2.1 Raw Materials and Utilities 3 2.1.1 Main Raw Materials 3 2.1.2 Other raw Materials 6 2.1.3 Utilities 6 2.1.4 Equipment used in paint industry 6 2.2 Production Lines 14 2.2.1 Solvent-based Paint (household/ industrial) Production Line 17 2.2.2 Water-based Paint Production Line 20 2.2.3 Printing Inks Production Line 22 2.2.4 Varnishes Production Line 24 2.2.5 Alkyd Resin Production Line 26 2.3 Service Units: Description and Potential Pollution Sources 29 2.3.1 Boilers 29 2.3.2 Water Treatment Units 29 2.3.3 Cooling Towers 30 2.3.4 Laboratories 30 2.3.5 Workshops and Garage 31 2.3.6 Storage Facilities 31 2.3.7 Wastewater Treatment Plants 31 2.3.8 Dow-therm Oil Heater 31 2.3.9 Solvent Recovery Unit 31 2.3.10 Restaurant and Housing Complex 32 2.4 Emissions, Effluents and Solid Wastes 34 2.4.1 Air Emissions 34 2.4.2 Effluents 34 2.4.3 Solid Wastes 38 2.4.4 Work Environment 38 2.5 Characteristics Specific to the Paint Industry 38 3. Environmental and Health Impacts of Pollutants 39 3.1 Impact of Air Emissions 39 3.2 Impact of Effluents 45 3.3 Environmental Impact of Solid Wastes 46 4. Egyptian Laws and Regulations 47 4.1 Concerning Air Emissions 47 4.2 Concerning Effluents 48 4.3 Concerning Solid Wastes 48 4.4 Concerning Work Environment 49 4.5 Concerning Hazardous Materials and Wastes 53 4.6 The Environmental Register 54 5. Pollution Abatement Measures 56 5.1 Air Pollution 57 5.2 Work Environment 57 5.3 Water Pollution Abatement Measures 58 5.4 Abatement Measures for Solid Wastes Pollution 62 5.5 Water and Energy Conservation 63



6. Self-Monitoring, Definition and Link to EMS 65

6.1 Benefits of SM 65

6.2 Scope and Objectives of SM 65

6.3 SM and Environmental Management System (EMS) 66

6.3.1 The Environmental Management System (EMS) 66

6.3.2 Link Between Self-Monitoring and EMS 68

6.3.3 SM Link to Pollution Prevention and Cleaner Production

70

6.4 Regulatory Aspects 70

6.4.1 SM and Environmental Register 70

6.4.2 SM and Inspection 71

7. Planning of SM 73 7.1 Assessment of existing monitoring capacity 75 7.2 Identification of key parameters 75 7.3 General data required 76 7.4 Data collection, manipulation and reporting 76 7.5 Criteria for selecting monitoring method 77 7.5.1 Direct or indirect measurement 78 7.5.2 Mass balance 80 7.5.3 Emission factor 81 7.5.4 Engineering calculations 81

8. Monitoring of Raw Materials, Utilities and Products 82 8.1 Raw materials and chemicals 82 8.2 Utilities 84 8.3 Products 85

9. Operation Control 86 9.1 Monitoring process parameters 86 9.2 Planned maintenance 98

10. Environmental Monitoring 100

10.1 Emission to air 100

10.2 Effluents (wastewater) 101

10.3 Monitoring of solid waste 103

10.4 Monitoring of hazardous waste management 103



11. Data Collection, Processing and Usage 109

11.1 Data collection and processing 109

11.2 Using SM outputs 109 11.2.1 Techniques for summarizing and illustrating data 111 11.2.2 Environmental register 111 11.2.3 Reporting 111 11.2.4 Internal auditing and conclusions on results 112 11.2.5 Feedback and decision making 112 11.2.6 Using outputs in public relations 112

References

Annex A Data collection and processing

Annex B Register for environmental conditions



List of Acronyms BOD Biological Oxygen Demand

COD Chemical Oxygen Demand

O&G Oil and Grease

CO Carbon Monoxide

CO2 Carbon Dioxide

VOCs Volatile Organic Compounds

MEK Methyl ethyl Ketone

MIBK Methyl Iso Butyl Ketone

SOx Sulfur Oxides

NOx Nitrogen Oxides

TDS Total Dissolved Solids

EMS Environmental Management System

EoP Treatment End-of-Pipe Treatment

CP Cleaner Production

P2 Pollution Prevention

SIC Standard Industrial Classification

SM Self-Monitoring

SMS Self-Monitoring System

WWTP Wastewater Treatment Plant

µm Micro meter 10-6 m

MHUUC Ministry of Housing, utilities and urban Communities

HACCP Hazardous Analysis& Critical Control Point



CIP Clean in Place

SM Self-Monitoring

SMS Self-Monitoring System



1. Introduction

The Egyptian Pollution Abatement Project (EPAP) sponsored by FINIDA has assigned Finish and Egyptian consultants for the task of developing sector-specific inspection and monitoring guidelines.

A General Inspection Manual, GIM, has been developed covering inspection aspects common to all sectors. The manual : � Discusses the strategy, objectives and tasks of the inspectorate

management. � Identifies the team leader responsibilities and tasks. � Presents a methodology for performing all types of inspection.

Tasks during the various phases of planning, performing field inspection, report preparation and follow-up are discussed. Several checklists are included.

Sector specific inspection manuals have been developed for the following industries: � Textile industry � Pulp and paper industry � Food industry

- Grain milling industry - Dairy industry - Carbonated beverages industry - Confectionery industry - Fruits and vegetables industry

� Metallurgical industry � Fabricated metal industry � Motor vehicle assembly

The developed manuals were tested through a number of training programs that targeted RBOs and EMUs. The inspectors involved in the training used these manuals to inspect a number of industrial facilities. Feedback from the concerned parties led to the improvement of these manuals and their continuous update.

1.1 Preface As a continuation of the previous effort, the following Inspection and self-monitoring manuals are being developed as part of this project. Inspection manuals: � Paint industry � Detergent oil and soap industries � Cement and ceramic industry � Fertilizer industry Self-monitoring manuals: � Paint industry



1.1.1 Project Objectives

The project aims at the development of sector-specific guidelines for inspection and self-monitoring to be used by inspectors and pant personnel respectively. These manuals are meant to be simplified but without abstention of any information necessary to the targeted users. Flowcharts, tables and highlighted notes are used for easy representation of information.

1.1.2 Organization of the Self-Monitoring Manual The self-monitoring manual for the paints industry includes eleven chapters. The first chapter represents an introduction to the whole project and to the specific sub-sector of the industry. Chapters two to five deal with the paints industry and its environmental impacts.

The description of the industry in chapter 2 includes the inputs and outputs, a description of the different production lines with their specific inputs and outputs, a brief description of the service and auxiliary units that could be present at the industrial establishment with their potential sources of pollution and the various emissions, effluents and solid wastes generated from the different processes.

Chapter three describes the environmental and health impacts of the various pollutants whereas chapter four gives a summary of the articles in the Egyptian environmental laws relevant to the paints industry. Chapter five gives examples of pollution abatement techniques and measures applicable to the paints industry.

Chapters 6 to 11 describe self monitoring activities and start with defining self- monitoring (SM) and its link to environmental management systems (EMS). The stages of the EMS are described and their relation to the corresponding stages of the SMS defined. The link between pollution prevention and SM is explained in the context of the Egyptian regulations. Inspection of SM results by competent inspection authorities is considered with respect to the benefits that can be achieved for the inspection process as well as the role of the inspectors in checking the results.

Planning for SM is described in chapter 7 and includes the assessment of existing monitoring capacity, the identification of key parameters, the collection of basic information and data, the organization and reporting of results and the criteria for selecting monitoring method.

Chapter 8 is concerned with monitoring of inputs and outputs whereas chapters 9 and 10 are devoted to the process monitoring and compliance monitoring respectively. Using SM outputs is described in chapter 11.



2. Description of the Industry

Products of the surface-coating (paints) are essential for the preservation of all types of architectural structures, including factories, from ordinary attacks of weather. Uncoated wood and metal are particularly susceptible to deterioration, especially in cities where soot and sulfur dioxide accelerate such action. Aside from their purely protective action, paints, varnishes, and lacquers increase the attractiveness of manufactured goods, as well as the aesthetic appeal of a community of homes and their interiors. Coatings that are used to cover building, furniture, and the like are referred to as trade sales or architecture coatings in contrast to industrial coatings which are used on materials being manufactured. Industrial finishes are applied to a wide variety of materials, such as metal, textiles, rubber, paper, and plastics, as well as wood. Architectural coatings are usually applied to wood, gypsum wall-board, or plaster surfaces.

The paints industry is a branch of the chemical industries sector. Surface coating (paints) have been divided into:

• Solvent-based paints

• Water-based paints

• Varnishes; clear coatings.

• Printing inks.

• Resins (for paints and varnishes manufacture).

Therefore, there are different production lines, plants can have as few as one or two production lines or all of them.

Service units (utilities) provide water and energy requirements as well as maintenance, storage, packaging, testing, and analysis needs.

The batch process is common in paints industry, old plants use open equipment, while modern plants use the closed one. Equipment cleaning is necessary, and required between batches.

2.1 Raw Materials and Utilities

2.1.1 Main Raw Materials

Liquid paints is a composite of a finely divided pigment dispersed in a liquid composed of a resin or binder and a volatile solvent. Therefore, paints are manufactured from three main constituents; pigments, binders, and solvents (thinners), in addition to many other additives to give the paints specific properties for specific purposes or applications.

The liquid portion of the paints is known as the vehicle. Vehicles are composed of nonvolatile and volatile parts:

• Nonvolatile; - Solvent-based paints: oils and/ or resins plus driers

and additives. - Lacquers: celluloses, resins, plasticizers, and

additives. - Water-based paints: styrene-butadiene, polyvinyl

acetate, acrylic, other polymers and emulsions, copolymers plus additives.

• Volatile



Ketones, esters, alcohol, aromatics, and aliphatics.

The pigment is one of the main and important constituent of the paint. In general, pigments should be opaque to ensure good covering power and chemically inert to secure stability, hence long life. Pigments should be nontoxic, or at least of very low toxicity, to both the painter and the inhabitants. Finally, pigments must be wet by the film-forming constituents and be of low cost. Different pigments possess different covering power per unit weight. Table (1) shows the different paints constituents.

Table (1) Paints Constituents

Constituent Function

Main constituents

Pigments are usually:

• An inorganic substance, such as titanium dioxide, chrome pigment, earths, lead pigments, zinc pigments.

• A pure, insoluble organic dye known as a toner.

• An organic dye precipitated on an inorganic carrier such as aluminum hydroxide, barium sulfate or clay.

The function of pigments and fillers is to provide simply a colored surface, pleasing for its aesthetic appeal. The solid particles in paint reflect light rays, and thus help to prolong the life of the paints, and protect metals from corrosion.

Binders or vehicles. Those are resins or oils.

Its function is binding the pigment to the substrate.

Thinners and solvents; such as petroleum ether, toluene, xylene.

It is the volatile part of the vehicle. Its function is to dissolve the binders, adjust the paint viscosity, and give homogeneous, regular, and uniform thickness on the coated surface.

Fillers; such as clay, talc, gypsum, and calcium carbonate.

Pigment extender, or fillers, reduce the paint cost and control the rheorological properties (viscosity) of paints.



Table (1) Paints Constituents (continue)

Constituent Function

Other additives

Driers, as cobalt, lead, zinc, zirconium, manganese, calcium, barium.

To accelerate the drying of the paints.

Anti-skinning agents It is added to the paints (unsaturated), to prevent the solidification of paints surface during storage.

Anti-settling agents To improve the dispersion efficiency of the pigments into the vehicle, to prevent the settling of pigments during storage.

Plasticizers; These materials are special types of oils, phthalate esters or chlorinated paraffins.

To improve the elasticity of paint films, and to minimize the paint films tendency for cracking.

Dispersants, wetting agents, fire retarding, anti-floating, anti-foaming,…etc.

To give the paint specific property for specific purpose or application.

Paint Formulations

Proper paint formulations depend upon raw materials selection and accurate calculation of the amounts of its constituents. Generally, paint is a blend, in which pigments and fillers are suspended in a liquid. The paint formulations are related to their applications. Generally paints are used to hide the original surface, providing a certain color, resisting the weathering conditions, washability, gloss, and protecting surface from corrosion. The selection of pigments, fillers, and carrying liquids (vehicles) is necessary for a proper paint. In general, pigments should be opaque to ensure good covering power, and chemically inert to secure stability, and non toxicity. To predict some properties of paints such as ease of painting, gloss, washability for a certain formulation, the pigment volume concentration (PVC) in paint is used as indicator.

volume of pigment in paint Pigment volume concentration (PVC) =

(Volume of pigment in paint + volume of nonvolatile vehicle constituents in paint)

Indicator values for pigment volume concentration in paints, is shown in table (2).

Table (2) Pigments Volume Concentration (PVC)

Paints Type Indicator Values Matt paints 50-75%

Semigloss paints 35-45%

Gloss paints 25-35%

Exterior household paints 27-36%

Metal primers 25-40%

Wood primers 35-40%

2.1.2 Other Raw Materials

Chemicals; are consumed at the facility for different purposes:

• Chemicals used are organic solvents (ether, chloroform, ketones, esters, xylene, toluene, hexane, ethyl and methyl alcohol’s), acids (acetic, boric, oxalic, benzoic, hydrochloric, sulfuric), alkalis (sodium,



potassium and ammonium hydroxides), potassium chloride, sodium sulfate, sodium thiosulphate potassium iodide. These chemicals are used in the production processes, and in the quality control laboratories for raw materials and products.

• Biocides and antifouling agents are used in the manufacture of the antifouling and wood preservatives paints, and they are also used in the manufacture of water-based paints to prolong their life time.

• Water-alkali solutions, and solvents for equipment cleaning and washing, between batches.

• Detergents and antiseptics for floor cleaning.

Lube oil; is used in the garage and workshops.

Packaging materials; different types of packaging materials are used (aluminum foil, metallic and plastic containers, tin sheets, and cartons).

2.1.3 Utilities

Steam; is generated in boilers that use either Mazot (fuel oil), solar (gas oil) or natural gas as fuel. Steam is used for providing heat requirements and in some large facilities for electric power generations.

Water; is used as process water, as rinse water for equipment and floor, as boiler feed water, as cooling water and for domestic purposes. Boiler feed water is pretreated in softeners to prevent scale formation. Water may be supplied from public water lines, wells or canals. The type of water supply will dictate the type of pretreatment.

Note: Defining the inputs and outputs helps to predict the

expected pollutants.

2.1.4 Equipment Used in Paints Industry

1. Mixers Mixers are used to achieve homogeneity between different components, specially in the production of varnishes or water-based paints. Mixers are used in the following operations:

• Mixing oils or resins.

• Mixing pigments and fillers with coating materials.

• Decreasing the viscosity of resins, and varnishes.

• Mixing additives with paints or varnishes.

• Adding solvents or diluting agents (thinner) to paints, to adjust the viscosity.

• Preparing emulsion (water-based) paints. There are many types of mixers used in paint industry, they differ in their suitability for different applications. Choice of mixer type depends on the following:

• Viscosity: mixers types used in preparing pastes differ from those used in the production of low viscosity paints.



• Density difference between components: achieving the desired homogeneity depends on the type of impeller, blades design, mixing speed, and inclination of impeller axis with respect to mixing tank axis.

• Solid particle size: Some components, such as pigments agglomerates, have relatively large particle size compared to other components. Also volatility of solvents affects the design of mixers and the need for cooling.

The following are different types of mixers:

• Manual mixers.

• Automatic mixers.

• Kneaders.

• Colloid mills.

• Rotary churns.

• Mixing by air streams.

Figures (1-14) shows the types of impellers or mixers used in paints industry.

The mixers usually consists of mixing tank, usually vertical, and one or more impeller(s) driven by electrical motor, the mixing tank may also have vertical baffles. The impeller consists of a shaft assembled with one or more mixing blades propellers. Propellers can be divided into two main types, axial and radial flow propellers.

Figures (1-6) show axial flow propellers, the type shown in Figure (1) is considered the most common type in paints industry. The impeller in figure (4) is fixed in the wall of mixing tank with suitable inclination, it can be also fixed vertically at the axis of mixing tank using vertical baffles. Such impellers rotate at speeds between 1150-1750 rpm. The vertical type shown in Figure (5) usually rotate at speeds between 350-420 rpm via gearbox and it is used in preparing colloids. The inclined high-speed type is used for the preparation of emulsions. The type shown in Figure (6), which fixed in the side of mixing tank, is used in mixing solid particles free liquids.

Figures (7- 10) show radial flow propellers, which have blades parallel to propeller shaft axis. Turbine propellers in figures (7, 8) rotate the mixing tank contents in circular motion in both vertical and axial directions. The diameter of paddle propellers shown in Figure (9), reaches 60% of mixing tank diameter and rotates with relatively low speeds.

Figures (11 and 12) show paddle stirrers, which are used in mixing high viscosity liquids or pastes, whereas Figure (13) shows anchor stirrers which are used for very high viscosity liquids or pastes. This type has a small clearance between the mixing propeller and mixing tank walls. Figure (14) shows the multiple vane stirrer, and figures (15 and 16) the motion of the inclined propellers.

Figures (17) shows kneaders used in the production of putties. The kneader consists of a separate tank which can be fixed in the mixer or transferred with its contents to the packing unit. This system helps in weighing the tank content before mixing and to clean the mixing vessel in the cleaning unit. In this system the mixers can be elevated vertically or laterally as shown in Figure (18).

Figure (19) shows a horizontal kneader consisting of a U-shaped vessel in which two mixers with special shape rotate in different directions with small clearance between them. There are other types of kneaders which can be heated by steam or cooled by water in order to control the viscosity of the mixture.

2. Mills



Paints industry uses different types of mills such as roller mills or ball mills, etc.. Figure (20) shows three-roller mills in which each roller rotates in the opposite direction of the others and with different speeds with ratio 1:3:9. The clearance between each two rollers must be controlled accurately to maintain the desired finesse of dyes. This type of mills leads to the desired homogeneity as the dye is dispersed into its particles. This type of mills is open and therefore cannot be used in grinding of paints which contain high volatility solvents as solvent emissions to the atmosphere could occur.

Another type of mills is the ball mills. This type consists of a cylinder rotating about its horizontal axis and containing the grinding balls which may be made of steel or pebbles. If steel balls are used the cylinder lining will be also made of steel and is used only with dark color paints. But if the balls are made of pebbles or ceramics the cylinder lining will be made of ceramic or silica and can be used with white or light color. The grinding efficiency and fineness of particle depend on the dimensions of the cylinder, speed of rotation, balls size and balls density. In some mills the length of the cylinder is equal to its diameter, but to maintain higher degree of fineness mills with a length larger than diameter are used. There are other types in which the grinding operation is made in steps inside the mill, as the cylinder is separated into sections with screens with suitable sizes separating the sections. The initial grinding is done in the first section and the final grinding is done in the final section. In some types of theses mills bars are used instead of balls in order to obtain particles with slightly different sizes. This type of mills is suitable for dry grinding or grinding of colloidal particles.

The roller mill and ball mill are used in small factories. Presently, the most common used mills, in large modern factories, are sand mills (vertical or horizontal) and dyno mills.

The relations between the internal diameter of ball mills and the diameter of balls are shown in table (3).

Table (3) Relations between the internal diameter of ball mills and the ball diameter

Internal diameter

Ball diameter (cm) & their percentage

30 – 60

1.5 (70%), 2.5 (30%)

90 – 120

1.5 (30%), 2.5 - 4 (60%), 4 - 5 (10%)

120 – 150

2 – 2.5 (85%), 5 – 6.5 (15%)

3. Filters

During the manufacturing steps in paints or varnishes industry or during the oil heating process the liquids are contaminated by foreign matters that fall into them. Moreover the paint may contain particles that were not ground to the required size or some polymers that didn’t dissolve. Some surface hardness may also exist. For all the previous reasons, paints and varnished liquids must be purified by one of the following methods:

• Single cylinder mill: It can work as a screen as all large pigments particles and foreign particles will be separated in the mill hopper.

• Fine screens.

• Filter press.

• Centrifugal separator for varnishes purification.

• Settling for varnishes purification.

4. Packing machines



The packing may be manual, semi-automatic, or automatic according to the size of production. There is a number of packing machines differing in speed and packs handling.



Fig. (1) Fig. (2)

Fig. (3) Fig. (4)



Fig. (5) Fig. (6)

Fig. (7) Fig. (8)

Fig. (9) Fig. (10)



Fig. (11) Fig. (12)

Fig. (13) Fig. (14)

Fig. (15) Fig. (16)



Fig. (17)

Fig. (18)

Fig. (19) Fig. (20)

Knife

Low speed

Output

Input

Medium speed

High speed



2.2 Production Lines

Table (4) presents the various production lines and service units that could be present in a facility.

Note: Knowledge of the processes involved in each production line and service

unit allows the prediction of pollution hazards and expected violations and

helps determine possibilities for implementing cleaner technology.

Table (4) Production lines and service units in paints industry

Service Units Production Lines

Heating furnaces (Dow-therm oil heater)

Cooling towers

Solvent recovery unit

Compressors

Boilers

Generators

Laboratories

Mechanical & electrical workshops

Garage

Storage facilities

Wastewater Treatment Plant

Restaurant and Housing complex

Water-based paints

Solvent-based (household) paints

Solvent-based (industrial) paints

Printing inks production line

Varnishes production line

Resins production line

Large plants use huge number of raw materials and chemicals, and produce a multitude products for different applications. Paints industry is characterized by batch processing, which helps adjust the color and properties of paints.

The unit operations used for paints manufacture are shown in Figure (21). These unit operations are mainly physical (mixing, grinding, filtration and packaging).

Chemical conversions are involved in the manufacture of the constituents of paints as well as in the drying of the film on the substrate. These constituents are either exported or purchased from another chemicals production plant, therefore, the chemical processes involved in the production of these constituents will not be addressed in this manual.

The manufacture procedures illustrated in Fig. (21) are for a mass-production of paints. The weighing, assembling, and mixing of the pigments and vehicles take place on the top floor. The mixer may be similar to a large dough kneader with sigma blades. The batch masses are conveyed to the next operation, where grinding and further mixing take place. A variety of grinding mills may be used. One of the oldest methods is grinding, or dispersion, between two buhrstones; however, ball-and-pebble mills and steel roller mills were the principal grinding mills used until recently. Sand mills, high-speed agitators, and high-speed stone mills are being used increasingly to grind paints and enamels.

The types of pigments and vehicles are dominant factors in the choice of the equipment used. The mixing and grinding of pigments in oil require skill and experience to secure a smooth product.



After mixing, the paint is transferred to the next operation, where it is thinned and tinted in agitated tanks, which may hold batches of several thousand liters. The liquid paint is strained into a transfer tank or directly into the hopper of the filling machine. Centrifuges, screens, or pressure filters are used to remove nondispersed pigments. The paint is poured into cans or drums, labeled, packed, and moved to storage, each step being completely automatic

Paints Industry- Self-Monitoring Manual 23


Solvents

Additives except driers

Plasticizers

Driers

Binder (oils or resins)

Pigments & Fillers

Feed Hopper

Screens

Tank

Packaging Storage

Weigh

Tank Sludge

Filling

Machine

Labeling

Machine

Belt conveyor

Thinning Tank Milling Mixing

Plate form Scale

Fig. (21) Flowchart of Paints Manufacturing Steps

Tank



2.2.1 Production of solvent-based (household/ industrial) Paints The solvent-based paints differ according to their applications and therefore the raw materials and additives (adhesives, driers, heat resisting agents, …) used in their production. They include industrial and household paints. The industrial paints are used for industrial purposes such as motor vehicle, washing machine, and pipelines painting operations. The household paints are used to cover buildings and furniture. Figures (22, 23) present the main operations in the solvent-based household/ industrial paints production lines, the input to the units and the pollution sources.

Mixing

Alkyd resins or vegetable oils (boiled linseed oil), fatty acids, pigments (titanium dioxide), fillers (talc, and calcium carbonate), and plasticizers are weighed, and fed automatically to the mechanical mixers.

Grinding After mixing, the mixture (batch) is transferred to the mills for further mixing, grinding, and homogenizing. The type of used mill is related to the type of pigments, vehicles, and fillers.

Intermediate storage In some plants, after grinding, the batch is transferred to an intermediate storage tank, because the batch may need further grinding to obtain the required degree of homogeneity.

Thinning/ dilution The batch is then transferred from the intermediate storage tank to a mixer for thinning and dilution, where solvents, and other additives are added.

Filtration and

finishing

After thinning, the batch is filtered in a filter, to remove nondispersed pigments and any entrained solids. Metal salts are added to enhance drying (cobalt, lead, zirconium).

Packaging and

storage

The paint is poured into cans or drums, labeled, packed, and moved to storage, each step being completely automatic.



Mixing

Figure (22) Solvent-based (household) Paints Production Line

Inputs Processing Steps Pollution Sources

* Work place pollution parameters are VOCs, particulates, and noise. ** Spills or leaks could occur through the whole process, and may contaminate the water if

discharged to the sewer. *** Chemicals empty containers are generated, and considered hazardous. Those hazardous

solid waste should be safely disposed into a landfill.

Pigments

Titanium dioxide (TiO2)

Filler (Talc, Calcium Carbonate)

Linseed Oil

Alkyd resin

Solvent (Turpentine)

Raw Materials Spills or leaks

Spent solvent (Mixers washing & cleaning)

Grinding Rollers Cooling Water

Spent Cooling Water (closed or open circuit)

Spent Solvent (mills washing & cleaning)

Finishing

Cobalt drier Spent solvent (vessels & tanks washing or cleaning) Lead drier

Zirconium drier

Filtration

Solid waste (sludge from filter press)

Packaging & Storage

Leaks or spills Packages

Solvent – based

paints (building)



Mixing

Figure (23) Solvent-based (Industrial) Paints Production Line


* Work place pollution parameters are VOCS, particulates, and noise. ** Spills or leaks could occur through the whole process, and may contaminate the water if



Styrenated alkyd resin

Filler (Talc, Calcium Carbonate)

Ti O2

Acrilamide Resin

Epoxy Resin

Phenolic Resin

Iron Oxide pigment

Grinding

Rollers Cooling Water

Finishing

Toluene

Xylene

Filtration

Solid waste (sludge from filter press)

Packaging & Storage

Packages

Industrial Paints


Spent solvent (Mixers washing & cleaning)


Spent solvent (vessels & tanks washing or cleaning)

Leaks or spills

Vinyl Resin

Spent Solvent (mills washing & cleaning)



2.2.2 Production of Water-based Paints Figure (24) presents the main operations in the water-based production line, the input to the units and the pollution sources. The water-based paints manufacturing steps are similar to those of the solvent-based paints production, except that the raw materials are added to the mixture in different order, and water is used instead of solvent as thinner.

Mixing and thinning/

dilution

Mixing in water-based occurs in two steps. In the first step (very high speed mixing) all inorganic materials dispersing agents, and wetting agents are mixed thoroughly. In the second one, polymer, glycol, freeze thaw agent, etc… are added and mixed at low speed.

The pigments, acrylic resins, and extenders most used are water-dispersible grades of titanium dioxide, zinc sulfide, lithophone, and regular grades of barium sulfate, mica, diatomaceous silica, clay, and magnesium silicate.

Grinding After mixing, the batch is transferred to the mills for further mixing, grinding, and homogenizing. The type of used mill is related to the type of pigments, vehicles, and fillers.

Mixing of additives The batch is then transferred to a mixer, where ammonia and dispersants are added to water, followed by pigments (premixed and ground in a mill). plastisizers, anti-foaming agents, preservative solution (usually chlorinated phenols) and polyvinyl acetate to give the required characteristics. Other additives are needed for specific purposes.

Intermediate storage In some plants, after that, the batch is transferred to an intermediate storage tank, because the batch may need further grinding to obtain the required degree of homogeneity.

Filtration and

finishing

The batch is then filtered in a filter to remove nondispersed pigments and any entrained solids.

Packaging and

storage




Mixing

Figure (24) Water-based Paints Production Line


* Work place pollution parameters are ammonia, particulates, and noise. ** Spills or leaks could occur through the whole process, and may contaminate the water if



Water

Talc

Calcium Carbonate/ other fillers


Mixers Washing & Cleaning Wastewater

Grinding Rollers Cooling Water


Mills Washing & Cleaning Wastewater

Finishing

Water + Ammonia Vessels or tanks washing &

cleaning wastewater

Coalescents & other additives

Filtration

Solid waste (sludge of filter press)

Packaging & Storage

Spills or leaks Packages

Water – based paints

Titanium dioxide (TiO2)

Defoamer

Emulsion polymer

Silica



2.2.3 Production of Printing Inks Figure (25) presents the main operations in the printing inks production line, the input to the units and the pollution sources. The printing inks manufacturing steps are similar to those of the paints production. Printing inks consist of a fine dispersion of pigments or dyes in a vehicle which may be a drying oil with or without natural or synthetic resins. Drying oils or petroleum oils and resins are used, although the newer synthetic resin systems are finding great favor because they are quick-drying and their working properties are excellent. There are three main types of printing inks; black inks, paste inks, and liquid inks. The paste inks are used in manufacturing of pens, and the black inks in newspaper print, and the liquid inks for printing on metals, plastics, carton.

Mixing

Binder (resins/ oils), pigments (in paste, and liquid inks) or carbon black (in black inks), and solvent or water are used according to the type of ink manufactured. These raw materials are fed automatically to the mechanical mixers.

Grinding After mixing, the batch is transferred to the mills for further mixing, grinding, and homogenizing. The type of used mill is related to the type of pigments, vehicles, and fillers.

Intermediate storage In some plants, after grinding, the batch is transferred to an intermediate storage tank, because the batch may need further grinding to obtain the required degree of fineness.

Filtration and

finishing

After thinning, the batch is filtered in a filter (usually filter press) to remove nondispersed pigments and any entrained solids. Other additives are added to the batch for special purposes.

Packaging and

storage




Figure (25) Printing Inks Production Line


Paste inks

Black Inks

Liquid Inks

* Work place pollution parameters are VOCS, particulates, and noise. ** Spills or leaks could occur through the whole process, and may contaminate the water if


solid waste should be safely disposed into a special landfill.

Mixing

Pigments Spent Solvent (Mixers Cleaning)

Binder (oil/ resin)

Filtration & Packaging

Packages

Grinding Cooling Water

Spent Cooling (Open or Closed Circuit)

Paste inks

Mixing

Carbon Black Spent Solvent (Mixers Cleaning)

Binder (oil/ resin)

Filtration& Packaging

Packages

Grinding Cooling Water Spent Cooling Water

Black inks

Plasticizer

Mixing

Carbon Black Spent Solvent(Mixers Cleaning)

Binder (oil/ resin)

Filtration& Packaging

Packages

Grinding Cooling Water Spent Cooling Water

Liquid inks

Plasticizer

Finishing Additives (adhesives,

heat resistant)

Spent Solvent (vessels Cleaning)

Carbon black particulates (work place)

Intermediate storage





2.2.4 Production of Varnishes Figure (26) presents the main operations in the varnishes production line, the input to the units and the pollution sources. A varnish is an unpigmented colloidal dispersion or solution of synthetic and/or natural resins in oils or urethenated oils dissolved in true solvents. These are used as protective or decorative coating for various surfaces specially wood.

Mixing

Only one production step occurs, in which the binders (natural resin + oil, nitro cellulose + short alkyd resin, urethenated oil, synthetic resins,…etc.) are thoroughly mixed with true solvents. After thorough mixing, the required additives are added. These raw materials are fed automatically to a mixing container.

Filtration and

finishing

After mixing has been finished, the batch is filtered in a filter, to remove any entrained solids.

Packaging and

storage

The varnish is poured into cans or drums, labeled, packed, and moved to storage, each step being completely automatic.



Figure (26) Varnishes Production Line


* Work place pollution parameters are VOCS, and particulate. ** Spills or leaks could occur through the whole process, and may contaminate the water if



Mixing

Binder (oil/ resin)

Caustic Wash wastewater from reactor cleaning

Filtration

Sludge

(Solid Waste)

Packaging & Storage

Spills or leaks Packages

Varnishes

Aromatic & aliphatic Solvents

Additives



2.2.5 Production of Alkyd Resins Figure (27) presents the main operations in the resins production line, the input to the units and the pollution sources.

Reaction

Any resin that is a polymer of an ester type monomer is a polyester resin. In this broad sense alkyds are polyesters, however, general usage restricts the term alkyd to polyesters that are modified with a triglyceride oil or the acids of such an oil.

Generally alkyd resin means the reaction product of a polybasic acid, a polyhydric alcohol, and a monobasic fatty acid or oil. Alkyds differ according to the type of oil which depends on whethere it is oxidized or nonoxidized, and on the length of the chain short, medium, or long. The reaction basic to all polyester resins, including alkyds, is a condensation reaction of carboxyl groups with hydroxyl groups, splitting out water and forming an ester.

In this process raw oils (linseed, soybean, safflower, sunflower, dehydrated castor), glycerol ( or penta erythretol), phthalic anhydride (or maleic anhydride), and solvents are fed to a catalytic reactor using heavy metal oxides (lead oxides) as catalyst. The acids typified by phthalic anhydride, contain two carboxylic acid groups, this gives them a reactive capacity or potential functionality of two glycerols.

The reaction conditions (temperature and pressure) depend on the specifications of the final product as short, medium, or long alkyd resin. Since the reaction is reversible, its completion requires removal of water. The addition of solvents (e.g. xylene) facilitates the removal of water by forming an azytropic vapors mixture.

Xylene Recovery (Xylene/

water Separation)

Xylene recovery can be performed by one of the following operations:

Condenser/ decanter, where the xylene/ water vapors are first cooled in a condenser and the resulting liquid allowed to separate in a decanter into a water rich layer and a xylene rich layer. The latter is recycled to the reactor.

Gas/ liquid separator, where the water/ xylene vapors mixture is introduced to a gas-liquid separator, which is fed with make-up xylene. Cooling to the dew point of the vapors allows the separation of the xylene rich vapor from the water solution. The Xylene rich vapor is recycled to the reactor, and the contaminated water is discharged to the internal sewer system of the plant.

Cooling The produced resin is cooled to about 200oC, by cooling water circuit.

Dilution The batch is transferred to tanks, where it is diluted with suitable solvent.

Filtration After dilution, the batch is filtered in a filter (usually plate and frame



filter press), to remove any entrained solids.

Properties adjustment After filtration, additives are added to adjust the properties of the resin.

Packaging and

storage

The produced resin is then stored in barrels (for sale) or in tanks to be used in the solvent-based paints manufacturing.



Reactor 250-300ºC

(Heating by Dowtherm oi1

Heater)

Figure (27) Alkyd Resins Production Line


* Work place pollution parameters are VOCS, and particulates. ** Spills or leaks could occur through the whole process, and may contaminate the water if discharged

to the sewer.

*** Chemicals empty containers are generated, and considered hazardous. Those hazardous solid waste should be safely disposed into a landfill.

Oil or fatty acids

Alcohols (Penta earithritol, or glycerol)

Phathatic anhydride or maleic anhydride

Solvents (e.g. xylene)

Lead Oxide (catalyst)

Additives (driers; Mg, Co, pb, Ba)

Humidity & heat stress (work place)

Caustic wash wastewater from reactor cleaning

Separation G/L Separator

Wastewater contains traces of Xylene

Cooling, Dilution, Adjustment

Spent solvent from tanks

cleaning Solvent (Turpentine)

Filtration

Sludge (Solid waste)

Intermediate Storage

Alkyd Resin to Solvent-based paints, inks and

varnishes production lines

Xylene (make-up)

Xy

len

e R

ecy

cled

Water/ Xylene vapors

Resin



2.3 Service Units, Description and Potential Pollution Sources

Medium and large size plants will have some/all of the following service and

auxiliary units. These units can be pollution sources and therefore should be

inspected and monitored. Figure (28) shows the various service units with their

corresponding raw materials and potential pollution sources.

2.3.1 Boilers Boilers are used to produce steam which is used to supply heat to the processes.

Although, processes in the production lines do not require steam, some paints

facilities have boilers to supply heat to the solvent recovery unit.

The gaseous emissions, due to fuel (Mazot or solar) burning, contain primarily

particulates (including heavy metals if they are present in significant concentrations

in the fuel), sulfur and nitrogen oxides (SOx, and NOx), carbon oxides (CO, and

CO2), and volatile organic compounds (VOCs). The concentration of these pollutants

in the exhaust gases depends on firing configuration (nozzle design, chimney height),

operating practices and fuel composition.

Wastewater is generated as blow-down purged from boilers to keep the concentration

of dissolved salts at a level that prevents salt precipitation and consequently scale

formation. The blow-down will be high in (TDS)

Also large quantities of water is used for cooling the turbines, therefore, spent cooling

water is generated. Also steam condensate is generated as wastewater. The amount of

wastewater generated depends on whether cooling is performed in open or closed

cycle, and on the recycling of steam condensate (may return to the boiler).

Wastewater contamination may arise from lubricating and fuel oil.

The heat stress may be high, in work place, in case of absence of thermal insulation

for boilers and steam pipelines.

2.3.2 Water Treatment Units There are different treatment processes, depending on the water source and the

application in the industry.



i) Water softening for medium hardness water

calcium and magnesium ions are removed from hard water by using cation exchange resin (sodium form). When the exchange resin has been loaded with Ca and Mg ions, it is regenerated to the sodium form by using a salt solution (sodium chloride) in the pH range of 6-8. This is performed by backwashing with the salt solution. The treated water has a hardness level of less than 1 ppm expressed as calcium carbonate.

ii) Water softening for very high bicarbonate hardness Water from wells and canals is pre-treated before softening. Water is treated first by the lime process, then by cation exchange resin. The lime process reduces dissolved solids by precipitating calcium carbonate and magnesium hydroxide from the water. It can reduce calcium hardness to 35 ppm if proper opportunity is given for precipitation. A coagulant such as aluminum sulfate (alum) or ferric sulfate is added to aid magnesium hydroxide precipitation. Calcium hypochlorite is added in some cases.

Currently the use of organic polyelectrolytes is replacing many of the traditional inorganic coagulant aid. Sludge precipitates and is discharged to disposal sites whereas the overflowing water is fed to a sand filter followed by an activated carbon filter that removes any substances causing odor and taste. A micro filter can then be used to remove remaining traces.

A successful method to accelerate precipitation is contacting previously precipitated sludge with the raw water and chemicals. The sludge particles act as seeds for further precipitation. The result is a more rapid and more complete reaction with larger and more easily settled particles.

iii) Desalination (Reverse Osmosis/ Electro-dialysis) Desalination can also be performed by reverse osmosis. In this process water is forced through a semi-permeable membrane by applying pressure.

2.3.3 Cooling Towers Moderate quantities of cooling water is used for cooling furnaces and the formation

equipment in this industry. Cooling towers provide the means for recycling water and

thus minimizing its consumption. The cooling effect is performed through partial

evaporation. This causes an increase in the concentration of dissolved salts which is

controlled by purifying some water (blow-down). The blow-down will be high in

TDS and will represent a source of pollution to the wastewater to which it is

discharged.

2.3.4 Laboratories Laboratories, in paint industry, are responsible for:

• Testing raw materials for compliance with required standards.



• Quality control of products to check agreement with standard specifications.

• Check the physical, chemical, and mechanical properties of final products.

Chemicals, including hazardous materials, are used in laboratories. Storage and handling should be checked by the inspectors, in addition to the disposal of chemicals empty containers, which is considered as hazardous waste.

2.3.5 Workshops and Garage Workshops are very important in the paint industry, where they are divided into

mechanical and electrical workshops. They are responsible for repairing and

maintenance of the equipment. Environmental violation could be due to:

• Noise

• Rinse water contaminated with solvents and lube oil Pollution in the garage will depend upon the services offered. The presence of a gasoline or diesel station implies fuel storage in underground or over the ground tanks that require leak and spill control plans. Replacing lube oil implies discharge of spent oil to the sewer system or selling it to recycling facility.

2.3.6 Storage Facilities The specifications for the storage facilities depend on the nature and properties of the

stored material:

• Environmental laws stipulate that special system should be applied for handling and storing hazardous chemicals.

• Fuel is kept in under/or above ground tanks. Storage requires proper preventive plans for spills and leaks.

2.3.7 Wastewater Treatment Plants

Although a WWTP is a pollution abatement measure, it has to be inspected and

monitored for potential pollution. Pollution may be due to malfunctioning or

improper management. A paints production facility discharges wastewater, high in

organic load. From time to time, due to batch processing, peak load will be

discharged. They may be due to internal processes, to seasonal fluctuations, to lack of

control or a “force majeur” situation such as power collapse. The potential pollution

sources are:

• Sludge which represents a solid waste problem.

• Treated water could represent a water pollution problem if not complying with relevant environmental laws.



2.3.8 Dow-therm Oil Heater Heating oil is heated in a furnace, where fuel is burned to produce the necessary energy. The pollution is expected to be generated from oil leaks or spills, which may contaminate the wastewater, if discharged to the sewer system. The gaseous emissions generated from stacks, due to fuel (Mazot or solar) burning in the heater.

2.3.9 Solvent Recovery Unit The spent solvent generated from equipment cleaning, in the solvent-based production line, could be recovered by vacuum distillation of the spent solvent, then condensation of solvent vapors. Spent solvent could be recovered through distillation process, with about 90% solvent yield achievable from the still, and 10% sludge (removed paints). The solvent can be recycled for reuse in dilution or cleaning. The sludge (precipitates) generated from the solvent recovery process could be dried and safely disposed into a landfill, or used in the production of a new paint product (a primer).

2.3.10 Restaurants, Washrooms and Housing Complex

These facilities will generate domestic wastewater as well as domestic solid waste.



Figure (28) Service Units and their Related Pollution Sources Inputs Service Units Pollution

Water Lime + chemicals

Fuel

Sludge

Back- wash w.w

Boiler Blow Down (TDS) Flue Gases

Hot Water

Cooling Tower Blow-

down (TDS)

Chemicals

Wastewater Hazardous Materials (handling)

Lube Oil Floor and

equipment rinse water

Cleaning Chemicals

Oily Rinse Water

Solid Wastes

Fuel Oil Rinse Water

Oily rinse water Solid wastes

Raw materials

Fuel

Chemicals

Products

Spills

Raw material

Hazardous material

Wastewater

Treated wastewater Sludge

Softening Units

Boilers

Steam

Cooling Towers

Laboratory

Electrical & Mechanical workshops

Storage

Garage

Treatment

WWTP



Figure (28) Service Units and their Related Pollution Sources (continue) Inputs Service Units Pollution

Fuel Flue Gases

��Spent cleaning solvens Sludge (removed

paints)

2.4 Emissions, Effluents and Solid Wastes

Table (5) summarizes the major polluting processes, process inputs, their outputs, the

pollution parameters and corresponding impact.

2.4.1 Air emissions There are two sources of air emission in the paints industry.

• Exhaust gases, resulting from fuel consumption used to generate steam from

boilers, and to heat oil in the heater (Dow-therm oil heater). The violating parameters would be; particulate matters (PM10), sulfur

oxides, nitrogen oxides, carbon monoxide.

• Fugitive emissions; volatile organic compounds (VOCs) as solvents and other

low molecular weight compound (in solvent-based paints, inks, alkyd resins

and varnishes), ammonia (in water based paints), solvents, particulate matters

(PM10), these emissions resulting from the operation processes (mixing,

grinding, packaging,…) in the workplace.

2.4.2 Effluents The major pollution load of the paints industry is the wastewater from the various

sources. Liquid effluent is generated from equipment, vessels, tanks, mixers, mills,

and packages, cleaning or washing process, between batches.

The cleaning process is performed using water (in water-based paints), or using

solvent (in solvent-based paints). This effluent contains oil& grease, BOD, COD,

ammonia, solvents, and heavy metals (lead, chromium, and mercury), and is

considered hazardous waste.

Specific effluents are:

Solvent Recovery Unit

Dow-therm oil heater



• Caustic wash wastewater generated from vessels and reactors cleaning. This

effluent contains caustic soda, BOD, COD, heavy metals, and oil& grease. It is

usually pretreated (precipitation and pH adjustment), and recycled for reuse.

The pretreatment process generates sludge, which is considered hazardous

waste.

• Equipment (mixers, mills, tanks, and vessels) and filling machines are

responsible for raw materials and products spills, these leaks could contaminate

the wastewater if discharged to the internal sewer system. (BOD, COD, oil&

grease, and heavy metals).

• Spent solvents used for equipment cleaning in the solvent-based paints

production line. The solvent is recovered by distillation and recycled back. The

nonvolatile materials, sludge (containing paints, solvents, and heavy metals) is

disposed as solid waste, and considered hazardous.

• Blow-downs from the cooling tower and boilers as well as back-wash of

softeners are high in TDS and TSS.

• Spent lube oil from garage and workshops if discharged to sewer will give oily

wastewater (O&G).

• Floor washing and sanitation produces a wastewater containing organic matter,

oil and grease, and traces of the chemicals used for sanitation.

• Out-dated, off-spec, and refused or rejected products.

Typical effluent characteristics of the Egyptian paints industry are shown in table (6) Typical pollution loads per ton of production are given in table (7).



Table (5) Pollutants Per Process

MAJOR

POLLUTING PROCESS

PROCESS INPUTS

PROCESS OUTPUTS

POLLUTION PARAMETERS

IMPACT

Solvent-based

paints

Pigments

Resins

Fillers

Binding agents

Solvents

Additives

Accepted product

Fugitive

emissions

VOCs, particulates Work Environment

Solid waste Chemicals empty

containers, paints filters

sludge

Land

Spent cooling

water

Contaminated with traces

of chemicals ( O&G,

BOD, COD, TDS, TSS,

S.S, color, pH, heavy

metals )

Water

Spent solvent

from equipment

cleaning

Contaminated with

paints

Water, if

discharged to sewer

Losses or leaks to

Sewer

O&G, BOD, COD, TDS,

TSS, S.S, color, pH,

heavy metals

Water

water-based

paints

Pigments

Fillers

Binders (resins/

oils)

Water

Ammonia

Accepted product

Fugitive

emissions

particulates, ammonia Work Environment



sludge

Land

Spent cooling

water


of chemicals ( O&G,

BOD, COD, TDS, TSS,


metals )

Water

Wastewater from

equipment wash

O&G, BOD, COD, TDS,


heavy metals

Water

Losses or leaks to

Sewer

O&G, BOD, COD, color,

pH, TDS, TSS, S.S,

heavy metals

Water

Printing inks Pigments

Binder (resins/ oils)

Sٍolvents

Accepted product

Fugitive

emissions


Spent cooling

water


of chemicals ( O&G,

BOD, COD, TDS, TSS,


metals )

Water

Spent solvent

from equipment

cleaning

Contaminated with

paints

Water, if

discharged to sewer



MAJOR

POLLUTING PROCESS

PROCESS

INPUTS

PROCESS

OUTPUTS

POLLUTION

PARAMETERS

IMPACT

Losses or leaks to

Sewer


pH, TDS, TSS, S.S,

heavy metals

Water



sludge

Land

Resins Vegetable oils

Binders (resins/

oils)

Solvents

Accepted product

Fugitive

emissions


Spent cooling

water


of chemicals ( O&G,

BOD, COD, TDS, TSS,


metals )

Water

Spent solvent

from equipment

cleaning

Contaminated with

paints

Water, if

discharged to sewer

Losses or leaks to

Sewer


pH, TDS, TSS, S.S,

heavy metals

Water


containers, filters sludge

Land

Vegetable oils

Oil free Fatty acids

Alcohols/ Glycero

Penta erythrito

Solvents (Xylene)

Phthalic anhydride

Maleic anhydride

Metal oxides

Accepted product

Fugitive

emissions

VOCs, particulates, acids

vapor

Work Environment

Wastewater from

the reaction

Contaminated with

xylene

Water, if

discharged to sewer

Caustic wash

wastewater from

equipment

cleaning


pH, TDS, TSS, S.S,

heavy metals

Water

Losses or leaks to

Sewer


pH, TDS, TSS, S.S,

heavy metals

Water

Spent cooling

water


of chemicals ( O&G,

BOD, COD, TDS, TSS,


metals )

Water


containers, filters sludge

Land

Packaging Paints products Losses in

wastewater


pH, heavy metals

Water

Softeners Raw Water Treated Water

Back-wash TDS, TSS Water



MAJOR

POLLUTING PROCESS

PROCESS

INPUTS

PROCESS

OUTPUTS

POLLUTION

PARAMETERS

IMPACT

Boilers Treated Water +

Condensate recycle

Blow-down TDS, TSS Water

Fuel Flue Gasses PM10, CO2, CO, NOx,

SOx

Air

Cooling Towers Water Blow-down TDS, TSS Water

Dow-therm oil

heater

Fuel Flue Gasses PM10, CO2, CO, NOx,

SOx

Air

Solvent Recovery

Unit

Spent solvents Sludge Solvents and heavy

metals

Land

Air emissions

(VOCS)

solvents Air

WWTP Process W.W Treated effluent O&G, BOD, COD, TDS,


heavy metals

Water

Sludge O&G, heavy metals, TSS Soil

Table (6) Typical chemical analysis of paints factory waste effluents

Parameter

pH

BOD

mg/1

COD

mg/1

TSS

mg/1

TDS

mg/1

S.S

mg/1

Color

Pt/CO

Oil&

Grease

mg/1

Solvent-based

paints line 7.7 66 221 39 353 - 15 28

Water-based

paints line 7.7 3000 5930 1485 1659 -

Out-of-

range 402

Printing inks 7.1 220 680 123 403 0.5 40 168

Resins 7.4 615 1344 218 790 3 55 89



Table (7) Typical organic pollution loads in

Egyptian paints industry per ton of

production

Plants

Effluent flow rate

m3/d

BOD kg/d

COD

kg/d

TSS Kg/d

TDS Kg/d

S.S Kg/d

Oil& Grease Kg/d

Solvent-based

paints line 150 9.9 33.15 5.85 53 - 4.2

Water-based

paints line 2.5 7.5 14.83 3.7 4.15 - 1

Printing inks 2 0.44 1.4 0.25 0.81 0.001 0.34

Resins 90 55.4 121 19.6 71 0.27 8

2.4.3 Solid and Hazardous Wastes

The main sources of hazardous and solid wastes are:

• Empty containers of raw materials and chemicals, contaminated with traces of

chemicals, are considered as hazardous waste.

• Spent bags of the Bag-Filters, contain pigments particulates. This solid waste is

considered as hazardous waste.

• Sludge generated from the solvent recovery unit, and filter press, containing

paints, solvents, and heavy metals, are considered as hazardous waste.

• Outdated, rejected, and off-spec. products. These solid wastes are considered

hazardous wastes.

• Sludge generated from the biological wastewater treatment plant, may contain

heavy metals, and could be considered hazardous.

• Oil separators could be used as a pretreatment before the WWTP or in the

garage, workshops, and storage area. Sludge is generated from the oil

separators and considered hazardous waste.

• Scrap metals generated from workshops and garage.

• Packaging wastes, paper, plastic,…



2.4.4 Work Environment There are many sources of air emission in the paints industry. These emissions

resulting from the operation processes (mixing, grinding, packaging,…) in the

workplace.

Fugitive emissions; volatile organic compounds (VOC) as solvents and other low

molecular weight compound (in solvent-based paints), ammonia (in water based

paints), particulate matters (PM10) of pigments during unpacking and mixing.

Noise could occur during grinding (near mills).

2.5 Characteristics Specific to the Paints Industry

Proper inspection and monitoring of the paints industry should take into consideration the following aspects:

• Production lines operate on batch mode, therefore, equipment cleaning and

washing are performed between batches.

• Shock loads are expected and are caused by discharging equipment wash

wastewater, in water-based paints production lines.

• Paints products production rate is seasonal, it increases in summer and

decreases in winter.

• Pollution loads are expected to be higher during start-up and shut-down.

3. Environmental and Health Impacts of Pollutants

3.1 Impact of Air Emissions

Particulates

Particulate matters

from fuel combustion

and other

manufacturing

processes

Recent epidemiological evidence suggests that much of the health damage

caused by exposure to particulates is associated with particulate matters

smaller than 10µm (PM10). These particles penetrate most deeply into the

lungs, causing a large spectrum of illnesses (e.g. asthma attack, cough,

bronchitis).

Emissions of particulates include ash, soot and carbon compounds, which

are often the result of incomplete combustion.

Lead, cadmium, Chromium, and other metals of pigments, can also be

detected in the production processes.

Chromium pigments Chromium is steel-gray, lustrous metal; body-centered cubic structure, gray crystals and blue-white hard metal. It is also an odorless element, insoluble in water. Under strongly oxidizing



conditions, may be converted to hexavalent state & occur as chromate anions. Chromium is soluble in acids (except nitric) and strong alkalies.

Chromium is causing irritation to the upper respiratory tract, severe nasal irritation. Chromium (III), the naturally occurring form, has low toxicity due to poor membrane permeability and non-corrosivity, while Cr (VI), from industrial emissions, is highly toxic due to strong oxidation characteristics and ready membrane permeability.

Occupational exposure to trivalent chromium and other chromium compounds by inhalation has been studied in the chromate manufacturing and ferrochromium industries; however, exposures all include mixed exposures to both Cr (III) and Cr (VI). Cr (VI) species is the likely etiological agent in reports of excess cancer risk in chromium workers. Data addressing exposures to Cr (III) alone are not available and data are inadequate for an evaluation of human carcinogenic potential. Hexavalent chromium is known to be carcinogenic in humans by the inhalation route of exposure. Hexavalent chromium compounds are carcinogenic in animal bioassays. There is sufficient evidence for increased incidence of lung cancer among workers.

Chromium occurs in nature mostly as chrome iron ore (feo.cr 203). Chromium is present in small quantities in all soils & plants. Movement from the soil surface to a depth of 10 cm was observed for all of the seven metals; cadmium, chromium, copper, molybdenum, nickel, lead and zinc, but most of the metal (60%-100%, mean 87%) remained in the upper 5 cm of soil.

Although most of the soluble chromium in surface waters may be present as Cr (VI), a small amount may be present as Cr (III) organic complexes. Hexavalent chromium is the major stable form of chromium in seawater; however, Cr (VI) may be reduced to Cr (III) by organic matter present in water, and may eventually deposit in sediments.

Nickel pigments Nickel is a silvery metal, odorless, Excellent resistance to corrosion and insoluble in water, ammonia; soluble in diluted nitric acid; slightly soluble in hydrochloric acid and sulfuric acid.

Nickel metal is well known cause of contact dermatitis in sensitized individuals. Instances of dermatitis in region of eyes has resulted from contact with nickel spectacle frames, but eye itself has not been involved. Histological changes in nasal mucosa of nickel workers were studied. Nickel is considered toxic as dust or powder. Nickel is the most frequent metal,



which induces allergic contact sensitization. Nickel hypersensitivity dermatitis may be initiated by contact with nickel on the skin. Exposure to industrial nickel dust causes nickel dermatitis. Sensitivity to nickel may be exhibited from skin contact … divalent nickel ions can penetrate skin at sweat-duct & hair follicle ostia, & bind with keratin.

There is sufficient evidence in humans for the carcinogenicity of nickel sulfate, and of the combinations of nickel sulfides and oxides. There is inadequate evidence in humans for the carcinogenicity of metallic nickel and nickel alloys. There is sufficient evidence in experimental animals for the carcinogenicity of metallic nickel, nickel monoxides, nickel hydroxides and crystalline nickel sulfides.

No data was found to suggest that nickel is involved in any biological transformation in the aquatic environment.

Lead pigments Chronic exposure to lead has been found to produce infertility, germinal epitheleium damage, oligospermia and testicular degeneration, decreased sperm motility, and prostatic hyperplasia. The subjective symptoms of lead poisoning in working adults are diffuse and include weariness at the end of the day. The patient is moody and irritable and may fall asleep watching T.V. Often he loses his interest in leisure- time activities. Lead poisoning is due to inhalation of lead dust, upon inhalation, absorption takes place easily from the respiratory system tract and symptoms develop relatively quickly than oral ingestion.

Cadmium Cadmium and cadmium compounds are carcinogenic to humans. They are highly toxic, inhalation (dust or fumes), and cause throat dryness, cough, headache, vomiting, chest pain, extreme restlessness and irritability, penumonitis, possibly bronchopneumonia, and it is irritating to nose and throat. Inhalation of cadmium dust, fumes, or salts over a number of years result ion chronic cadmium poisoning, a disease characterized by distinctive, non-hypertrophic emphysema with or without renal tubular injury, in which urinary execration of a protein occurs. Other toxic effects include anemia, eosinophilia, anosmia, chronic rhinitis, yellow discoloration of teeth, and bone changes.

Gases

Sulfur Oxides

Air pollution by sulfur oxides is a major environmental problem. This compound is harmful to plant and animal life, as well as many building materials. Another problem of great concern is acid rain which is caused by the dissolution of sulfur oxides in atmospheric water droplets to form acidic solutions that can be very damaging when distributed in the form of rain. Acid rain is corrosive to metals, limestone, and other materials, also deteriorates the agriculture land.



Nitrogen Oxides Nitrogen oxides also dissolve in atmospheric water droplets to form acid

rain.

Carbon Dioxide Combustion of fossil fuels to produce electricity and heat contribute to the green house effect caused by the formation of carbon dioxide. The greenhouse phenomenon occurs when heat radiation from earth is absorbed by the gases causing a surface temperature increase.

Water Vapor

(Humidity)

Humidity in workplace is regulated by law 4/1994 due to its effect on the respiratory system especially for people suffering from asthma.

Vapors

Ammonia Ammonia is a corrosive and severely irritating gas with a pungent odor.

Anhydrous ammonia is irritating to the skin, eyes, nose, throat, and upper respiratory system. Ecologically, ammonia is a source of nitrogen (an essential element for aquatic plant growth), and may therefore contribute to eutrophication of standing or slow-moving surface water, particularly in nitrogen-limited waters such as the Chesapeake Bay. In addition, aqueous ammonia is moderately toxic to aquatic organisms.

There is currently no evidence to suggest that this chemical is carcinogenic.

Ammonia combines with sulfate ions in the atmosphere and is washed out by rainfall, resulting in rapid return of ammonia to the soil and surface waters. Ammonia is a central compound in the environmental cycling of nitrogen. Ammonia in lakes, rivers, and streams is converted to nitrate.

Toluene Toluene is a volatile organic chemical.

Inhalation or ingestion of toluene can cause headaches,



confusion, weakness, and memory loss. Toluene may also affect the way the kidneys and liver function. Reactions of toluene in the atmosphere contribute to the formation of ozone in the lower atmosphere. Ozone can affect the respiratory system, especially in sensitive individuals such as asthma or allergy sufferers. Some studies have shown that unborn animals were harmed when high levels of toluene were inhaled by their mothers, although the same effects were not seen when the mothers were fed large quantities of toluene. Note that these results may reflect similar difficulties in humans. There is currently no evidence to suggest that this chemical is carcinogenic. A portion of releases of toluene to land and water will evaporate. Microorganisms may also degrade toluene. Once volatilized, toluene in the lower atmosphere will react with other atmospheric components contributing to the formation of ground-level ozone and other air pollutants.

Xylene Xylene are rapidly absorbed into the body after inhalation, ingestion, or skin contact. Short-term exposure of humans to high levels of xylene can cause irritation of the skin, eyes, nose, and throat, difficulty in breathing, impaired lung function, impaired memory, and possible changes in the liver and kidneys. Both short- and long-terms exposure to high concentrations can cause effects such as headaches, dizziness, confusion, and lack of muscle coordination. Reactions of xylene in the atmosphere contribute to the formation of ozone in the lower atmosphere. Ozone can affect the respiratory system, especially in sensitive individuals such as asthma or allergy sufferers.

There is currently no evidence to suggest that this chemical is carcinogenic.A portion of releases to land and water will quickly evaporate, although some degradation by microorganisms will occur. Xylene are moderately mobile in soils and may leach into groundwater, where they may persist for several years. Xylenes are volatile organic chemicals. As such, xylene in the lower atmosphere will react with other atmospheric components, contributing to the formation of ground-level ozone and other air pollutants.

Methyl Ethyl Ketone

(MEK)

Methyl ethyl ketone is a flammable liquid. Methyl ethyl ketone (MEK) is used as a solvent. Its extremely volatile characteristic makes fugitive emissions its primary source of releases to the environment.

Breathing moderate amounts of methyl ethyl ketone (MEK) for short periods of time can cause adverse effects on the nervous system ranging from headaches, dizziness, nausea, and numbness in the fingers and toes to unconsciousness. Its vapors are irritating to the skin, eyes, nose, and throat and can damage the eyes. Repeated exposure to moderate to high amounts may



cause liver and kidney effects.

No agreement exists over the carcinogenicity of MEK. One source believes MEK is a possible carcinogen in humans based on limited animal evidence. Other sources believe that there is insufficient evidence to make any statements about possible carcinogenicity.

Most of the MEK released to the environment will end up in the atmosphere. MEK can contribute to the formation of air pollutants in the lower atmosphere. It can be degraded by microorganisms living in water and soil.

Methyl Isobutyl Ketone

(MIBK)

Acute inhalation can cause nose, eye, and throat irritation, nausea headatche, vertigo, incoordination,…

Methanol Methanol is highly flammable. Methanol is readily absorbed from the gastrointestinal tract and the respiratory tract, and is toxic to humans in moderate to high doses. In the body, methanol is converted into formaldehyde and formic acid. Methanol is excreted as formic acid. Observed toxic effects at high dose levels generally include central nervous system damage and blindness. Long-term exposure to high levels of methanol via inhalation cause liver and blood damage in animals. Ecologically, methanol is expected to have low toxicity to aquatic

organisms. Concentrations lethal to half the organisms of a test population

are expected to exceed one mg methanol per liter water. Methanol is not

likely to persist in water or to bioaccumulate in aquatic organisms.

There is currently no evidence to suggest that this chemical is carcinogenic. Liquid methanol is likely to evaporate when left exposed. Methanol reacts in air to produce formaldehyde which contributes to the formation of air pollutants. In the atmosphere it can react with other atmospheric chemicals or be washed out by rain. Methanol is readily degraded by microorganisms in soils and surface waters.

Ethylene Glycol Long-term inhalation exposure to low levels of ethylene glycol may cause throat irritation, mild headache and backache. Exposure to higher concentrations may lead to unconsciousness. Liquid ethylene glycol is irritating to the eyes and skin. Toxic effects from ingestion of ethylene glycol include damage to the central nervous system and kidneys, intoxication, conjunctivitis, nausea and vomiting, abdominal pain, weakness, low blood oxygen, tremors, convulsions, respiratory failure, and coma. Renal failure due to ethylene glycol poisoning can lead to death. Ethylene glycol readily biodegrades in water. No data are available that report its fate in soils; however, biodegradation is probably the dominant removal mechanism. Should ethylene glycol leach into the groundwater, biodegradation may occur. Ethylene glycol in water is not expected to bioconcentrate in aquatic organisms, adsorb to sediments or volatilize. Atmospheric ethylene glycol degrades rapidly in the presence of hydroxyl radicals.



Acetone Acetone is a volatile and flammable organic chemical. Acetone is irritating to the eyes, nose, and throat. Symptoms of exposure to large quantities of acetone may include headache, unsteadiness, confusion, lassitude, drowsiness, vomiting, and respiratory depression. Reactions of acetone (see environmental fate) in the lower atmosphere contribute to the formation of ground-level ozone. Ozone (a major component of urban smog) can affect the respiratory system, especially in sensitive individuals such as asthmatics or allergy sufferers. There is currently no evidence to suggest that this chemical is carcinogenic. If released into water, acetone will be degraded by microorganisms or will evaporate into the atmosphere. Degradation by microorganisms will be the primary removal mechanism. Acetone is highly volatile, and once it reaches the troposphere (lower atmosphere), it will react with other gases, contributing to the formation of ground-level ozone and other air pollutants.

Petroleum Ether Petroleum ether is a mixture of hydrocarbons having carbon numbers in the range of C5 through C6, it is used as solvent. Petroleum ether is classified as reactive and volatile, and it participate in smog formation. Occupational exposure to petroleum ether can occur through inhalation, dermal contact, and ingestion. Petroleum ether applied to the skin may induce severe irritation, its vapor is an irritant of the mucous membranes and respiratory tract. It also affect the central nervous system, and may cause headache, fatigue, poor concentration, emotional instability, and impaired memory.

Chloroform Chloroform is an irritant, its main effect is as a central nervous system and cardiac depressant. Delayed renal and hepatic toxicity may also occurs. It can be a poison by ingestion and inhalation. General symptoms of exposure include nausea, vomiting, anorexia, salivation, a sensation of bodily warmth, headache, chest pain, fatigue, giddiness, drowsiness, and disorientation.

Butyl Acetate Butyl acetate vapors can affect central nervous system and cause headache, muscle weakness, giddiness, ataxia, confusion, delirium, coma. It also has and irritating effect to skin, eyes, throat. It causes cough and dyspnea. It may result to death by respiratory failure. Butyl acetate has moderate mobility is soil, ans its volatilization is expected from moist and dry soil, and water surfaces.

Ethyl Acetate The inhalation of ethyl acetate may be damaging to lung, liver, kidney, and heart. It is also toxic by ingestion. It may cause irritation of the eyes, nose, and throat. It is expected to have high mobility in soil and it is volatile from moist soil and water surfaces, its biodegradation in soil is also expected.

Cellosolve Cellosolve can affect the central nervous system causing headache, drowsiness, and weakness. Long term exposure may affect semen quality. Cellosolve has a very high mobility in soil, and its biodegradation may occur rapidly in water.

Butyl Cellosolve Butyl cellosolve can affect the central nervous system causing headache, drowsiness, and weakness. It penetrates skin easily and has toxic action by excessive skin exposure. It is also irritating to eyes, nose, and throat. It is expected to have high mobility in soil and to biodegrade rapidly in soil.

Butyl Alcohol Butyl alcohol vapors irritate and cause cough, it may cause irritation to eyes, nose, throat, and mucous membrane, headache, dizziness, and drowsiness. In high concentration it can cause central nervous system depression. It has high mobility in soil, and it is expected to volatilize from water surfaces



3.2 Impact of Effluents

The environmental impact of the wastewater depends on the receiving water body. The

Ministry of Irrigation has set limits for the pollutants in the wastewater discharged into

agriculture canals and drains as well as the Nile river for their detrimental effect on

agriculture. The parameters of relevance to the paints industry are O&G, BOD, COD, TSS,

TDS, S.S, heavy metals, temp., color, and pH.

Discharge of polluted wastewater high in BOD, O&G, and COD into lakes and sea can cause

eutrofication and impact bio-diversity. Eutrofication is a natural aging process in which the

water becomes organically enriched, leading to increasing domination by aquatic weeds,

transformation to marsh land, and eventually to dry land. Eutrofication can be accelerated by

human input of nutrients. Die-off and settling of plant growth results in sediment oxygen

demand, which tend to decrease dissolved-oxygen levels. The organic material in wastewater

stimulates the growth of bacteria and fungi naturally present in water which then consume

dissolved oxygen. In addition heavy metals could be toxic to the plants and aquatic life

because they interfere with many beneficial uses of the water..

Discharge of high O&G, BOD, and COD loads to the public sewer system will have an indirect environmental impact. Increased loads can cause malfunction of the domestic wastewater treatment plant.

Spent lube oils from garage and workshops could be a cause for concern if discharged into the sewer system because they tend to coat surfaces causing maintenance problems. Also, if they discharged to surface waters, they can interfere with the aquatic life in these surface waters and create unsightly floating matter and films. In addition, spent solvent and caustic wash wastewater generated from equipment washing and cleaning could make corrosion of the internal sewer system of the plant, if discharged.

3.3 Environmental Impact of Solid and Hazardous Wastes

Most of the generated solid waste is considered hazardous waste, and should be dumped in

disposal sites for hazardous waste.

Sludges generated from the filters, solvent recovery unit, and WWTP (if exist) containing

heavy metals, could contaminate the soil, surface water and underground water, if disposed.

Empty containers of raw materials and chemicals, may be sold to contractor. This solid

hazardous waste could affect the human health, if used domestically (food packaging,…).



Egyptian Laws and Regulations

There are a number of laws and regulations that address the different environmental

violations. The following are the laws applicable to the paints industry.

Concerning Air Emissions

Article 40 of Law 4/1994, article 42 of the executive regulations and annex 6 deal with

gaseous emissions from combustion of fuel. The statutes relevant to the fuel combustion are:

• The use of solar oil and other heavy oil products, as well crude oil shall be prohibited in dwelling zones.

• The sulfur percentage in fuel used in urban zones and near the dwelling zones shall not exceed 1.5%.

• The design of the burner and fire-house shall allow for complete mixing of fuel with the required amount of air, and for the uniform temperature distribution that ensure complete combustion and minimize gas emissions caused by incomplete combustion..

• Gases containing sulfur dioxide shall be emitted through chimneys rising sufficiently high in order that these gases become lighter before reaching the ground surface, or using fuel that contains high proportions of sulfur in power generating stations, as well as in industry and other regions lying away from inhabited urban areas, providing that atmospheric factors and adequate distances to prevent these gases from reaching the dwelling and agricultural zones and regions, as well as the water courses shall be observed.

• Chimneys from which a total emission of wastes reaches 7000 – 15000 kg/hr, shall have heights ranging between 18 – 36 meters.

• Chimneys from which a total emission of gaseous wastes reaches more than 15000 kg/hour, shall have heights exceeding at least two and a half times the height of surrounding buildings, including the building served by the chimney.

• The permissible limits of emissions from sources of fuel combustion in boilers are given in table (8) (Ministerial decree no. 495, 2001). The permissible limits of emissions from sources of other fuel combustion sources (Dow-therm oil heater) are given in table (9).



Table (8) Maximum Limits of Emissions from Sources of Fuel Combustion in Boilers

Pollution Maximum limit mg/m3 of Exhaust

Sulfur Dioxide

3400

Carbon Monoxide

250

Smoke 50

Table (9) Maximum Limits of Emission from Fuel Burning Sources Pollutant Maximum Permissible Limit, mg/ m3 SMOKE 250

DISPERED ASHES

250 (sources existing in urban regions, or close to residential areas)

500 (sources far from habitation)

500 (burning of wastes)

SULPHUR DIOXIDE Existing 4000 New 2500

ALDEHYDES Burning of waste 20

CARBON MONOXIDE Existing 4000 New 2500

Concerning Effluents

Limits for pollutants in wastewater vary depending on the type of receiving water body. The

parameters that should be monitored and/or inspected are Oil& grease, BOD, COD, pH, color,

temperature, residual chlorine, TSS, TDS, and heavy metals.

Table (10) presents the permissible limits for discharges to the

different recipients (sea, Nile, canals, agricultural drains, public

sewer) according to the different relevant laws.

Spent lube oil has a negative impact on water and soil and therefore its disposal should be monitored/inspected. A record should be kept for this purpose.



Concerning Solid Wastes

A number of laws address solid waste management. The following laws apply to scrap, garbage (paper,..), and sludge from the WWTP:

• Law 38/1967 which addresses public cleanliness, regulates the collection and disposal of solid wastes from houses, public places, commercial and industrial establishments.

• Ministry of Housing, Utilities and Urban Communities (MHUUC) decree No. 134 of 1968, which provides guidelines from domestic and industrial sources, including specifications for collection, transportation, composting, incineration and land disposal.

• Law 31/1976, which amended law 38/1967.

• Law 43/1979, the Law of Local administration, which provided that city councils are responsible for “physical and social infrastructure”, effectively delegating responsibility for infrastructure functions.

• Law 4/1994 regulates incineration of solid waste.

Concerning Work Environment

Violations of work environment could be encountered:

• Gas emissions (VOCs and metal particulates) generated in the production lines, are regulated by article 43 of Law 4/1994, article 45 of the executive regulations and annex (8), (table 11).

• In the boiler house: gas emissions, regulated by article 43 of Law 4/1994, article 45 of the executive regulations and annex 8. The limits for the relevant pollutants are presented in Table (11).

• Wherever heating is performed: temperature and humidity are regulated by article 44 of Law 4/1994, article 46 of the executive regulations and annex 9 of the Law (table 12).

• Near heavy machinery: noise is regulated by article 42 of Law 4/1994, article 44 of the executive regulations and table 1, annex 7 of the Law.

• Ventilation is regulated by article 45 of Law 4/1994 and article 47 of the executive regulations (tables 13, 14, 15)

• Smoking is regulated by article 46 of Law 4/1994 and article 48 of the executive regulations, and Law 52/1981.

• Work environment conditions are addressed in Law 137/1981 for Labor, Minister of Housing Decree 380/1983, Minister of Industry Decree 380/1982



Table (11) Permissible limits as time average and for short periods

Material

Threshold Time average Exposure limits for short

periods ppm mg/m3 ppm mg/m3

Ammonia 25 18 35 27

Carbon dioxide 5000 9000 15000 27000

Carbon monoxide

50 55 400 440

Sulfur dioxide 2 5 5 10

Acetone 750 1780 1000 2375

n- Butyl alcohol 50 150

Butyl acetate 150 710 200 150

Toluene 100 375 150 560

Xylene 100 435 150 655

Ethyl acetate 400 1400

Cadmium salts/ particulates

0.05 0.2

Hexa valent chromium

0.05

Total particulates 200

Table (12) Maximum Permissible Limits for Heat Stress (law 4/1994)

Type of Work Low Air Velocity High Air Velocity

Light work 30o C 32.2 o C

Moderate work 27.8 o C 30.5 o C

Severe work 26.1 o C 28.9 o C



Table (13) Maximum Permissible Noise Levels (law 4/1994)

No Type of place and activity Maximum permissible noise decibel

(A) 1 Work place with up to 8 hour and aiming to limit noise

hazards on sense of hearing 90 dB

2 Work place where acoustic signals and good audibility are required

80 dB

3 Work rooms for the follow up, measurement and adjustment of high performance operations

65 dB

4 Work rooms for computers, typewriters or similar equipment

70 d.B

5 Work rooms for activities requiring routine mental concentration

60 dB

Table (14) Noise Intensity Level Related to the Exposure Period

Noise intensity level decibel (A) 95 100 105 110 115

Period of exposure (hour) 4 2 1 ½ ¼

Table (15) Noise Intensity Level In Intermittent Knocking Places

Noise Intensity db Max Allowable Knocks During Daily Work Period

135 300

130 1000

125 3000

120 10,000

115 30,000

Concerning Hazardous Materials and Wastes

Law 4/1994 introduced the control of hazardous materials and wastes. The paints industry generates any hazardous wastes, such as chemicals empty containers, spent solvents, sludges from the solvent recovery unit and WWTP, and spent filters clothes. Hazardous chemicals such as solvents, and caustic solutions are used for washing vessels. The hazardous chemicals used in the lab and the fuel for the boilers, fall under the provisions of Law 4/1994. Articles 29 and 33 of the law makes it mandatory for those who produce or handle dangerous materials in gaseous, liquid or solid form, to take precautions to ensure that no environmental damage shall occur. Articles 25, 31 and 32 of the executive regulations (decree 338/1995) specify the necessary precautions for handling hazardous materials. Storing of fuel for the boilers is covered by the Law 4 as hazardous material There is no explicit articles in Law 4/1994 or in decree 338/1995 (executive regulations), regarding holding a



register for the hazardous materials; article 33 is concerned with hazardous wastes. However, keeping the register for the hazardous materials is implicit in article 25 of the executive regulations regarding the application for a license.

The Environmental Register

Article 22 of Law 4/1994 states that the owner of the establishment shall keep a register showing the impact of the establishment activity on the environment. Article 17 and Annex 3 of the executive regulations specify the type of data recorded in the register. The emergency response plan and the hazardous materials register will also be part of the environmental register as stated in part 4.5.



Pollution Abatement Measures

This section deals with pollution abatement (preventions) in the three media air, water and soil. Three types of interventions will be considered:

• In-plant modifications, which are changes that are performed in the plant to reduce pollutant concentrations in streams through recovery of materials, segregation and/or integration of streams, reducing the flow rate of the wastewater streams that need further treatment to reduce the hold-up of the required WWTP.

• In-Process modifications, which are changes performed on the process such as the introduction of newer technology, substitution of a hazardous raw material, performing process optimization and control.

• End-of-pipe (EoP) measures, which involve treatment of the pollutant or its separation for further disposal. Whereas in-plant and in-process modifications usually have an economic return on investment, end-of-pipe measures will be performed for the sole purpose of compliance with the laws without economic.

Egyptian Environmental Laws do not require water and energy conservation measures. These measures have been considered in this manual since resource depletion and hence conservation is a worldwide-recognized environmental issue that could be implemented in Egypt in the near future. Water conservation measures can lead to higher concentrations of pollutants in the effluent streams. Both energy and water conservation measures will provide both financial and economic benefits. The term Cleaner Production (CP) refers to the same concepts of pollution reduction through in-process, in-plant and resource conservation, in contradistinction to end-of-pipe treatment. In many cases, the adoption of CP can eliminate the need for (EoP) treatment.

The paints industry sector has a great potential for implementation of cleaner technology measures. Newly installed factories employing manpower above 100 has acquired relatively newer technologies, which need little in-process or in-plant modifications and are carrying out end-of-pipe treatment to meet the requirement of environmental laws. However, medium size enterprises as well as public sector companies badly need the 3 types of modifications. Small private enterprises are using primitive technologies. Mitigation measures in paints industry vary from in-process modification or recovery of solvents especially used in cleaning purpose. The following CP and EoP measures have been identified for the paints industry.



Air pollution Abatement Measures

Flue gases Particulate matter in flue (exhaust) gases are due the ash and heavy metal content of the fuel, low combustion temperature, low excess oxygen level, high flow rate of flue gases. Sulfur

dioxide is due to the sulfur content of the fuel. Nitrogen

oxides are formed when maximum combustion temperature and high excess oxygen. Carbon monoxide is formed when incomplete combustion occurs at low air to fuel ratio. The following measures can be adopted to minimize air pollution from flue (exhaust) gases:

• Replace Mazot by solar or natural gas. Mazot is high in sulfur content.

• Regulate the fuel to air ratio for an optimum excess air that ensures complete combustion of carbon monoxide to dioxide.

• Keep the combustion temperature at a moderate value to minimize particulate matter and nitrogen oxides formation.

Work Environment Pollution Abatement Measures

VOCs

emissions • Using VOCs control equipment such as; absorbents

(activated charcoal)/ biofilters on exhaust systems, water scrubbers should be implemented where necessary to achieve acceptable odor quality for nearby residents.

• During equipment cleaning process, solvents are released to air. This emissions could be minimized through closing off the immediate area around the axles, and also during operation for dissolvers and stirring equipment.

• Reduction of the use of open strainers (closed filling system).

• Covering of some containers could prevent the evaporation of solvents into air.

• Using mixing system by vibration rather than by stirring. The lake of a shaft holding a stirrer or a paddle means that the coating and solvent can be gently blended in a completely sealed vessel.

Particulates

emissions • Using control equipment such as; Fabric filters should be

used to control particulates, from the process of charging pigments and fillers to the mixers, to below 50 milligrams per normal cubic meter (mg/Nm3) .

• Using of pigments in the form of pastes (premixed with



resins) could be used instead of powdered pigments, to minimize particulate emissions during pigments charging and mixing processes.

• Using of closed equipment (mixers, vessels, mills, and tanks), to prevent the fugitive emissions (VOCs and particulates) of the raw materials in the work place.

Water Pollution Abatement Measures

Equipment cleaning is considered the major source of pollution (liquid waste) in paints industry, hence reducing cleaning process is a useful way for pollution control. The following are some ways for liquid waste control:

In-plant modifications

• Elimination of unnecessary intermediate storage tanks, to minimize the amount of spent solvents generated from the cleaning of these tanks.

• Recycling from intermediate tank directly to the mill instead of using recycling tank, which lead to reducing the pollution (liquid waste) resulting from cleaning of the removed tank.

• Using high efficiency mills, which allows no need for recycling tank.

• Using centrifugal clarifier instead of filter press, to minimize losses (spills and leaks) occur during recycling of the filtrate to the intermediate tank. This will accordingly improve the quality of the wastewater.

• Using high-pressure jets for cleaning of tanks to enhance cleaning process, so reducing the amount of liquid wastes (solvents and caustic solutions) generated from cleaning process.

• Using manual skimmers for removing materials (paints) stuck to the tanks or container walls, before cleaning with solvent or caustic soda solution. This reduces the amount of liquid wastes used in cleaning, and the removed sticky materials could be recycled. Also mechanical skimmers can be used for tubes cleaning.

• Using Teflon-lined tanks to reduce materials sticking to their walls.

• Segregation of sewer systems for liquid wastes, generated from water- based paints production line and solvents-based production line, as this leads to more efficient recycling.

• In all cases, it is recommended the industrial liquid waste discharged separately from domestic wastes as they differ in the pollutant nature.



• The installation of product-capture systems for filling machines can reduce product losses.

• Implementation of a quality control system such as HACCP (Hazard Analysis & Critical Control Point) is recommended to minimize waste.

In-process modifications

• In solvent-based paints production line;

- Random choice of the cleaning solvent could be replaced by an evaluation process, leading to a choice of one single solvent for all tanks and equipment cleaning.

- Schedule the production runs and modify the manufacturing procedures to minimize or eliminate the use of wash solvent.

- Reuse of cleaning solvents (spent solvents) many times, hence reducing the solvent consumption. After that, the solvent can be regenerated distilled and recycled for use in dilution or cleaning.

- Spent solvent could be recovered through distillation process, with about 90% solvent yield achievable from the still, and 10% sludge (removed paints). This sludge could be used in the production of a new paint product (a primer).

• In Water-based paints production line;

- Using washing liquids (caustic solutions), generated

from cleaning of mills and packing machines, in dilution of next batch.

- Scheduling operations to produce light color first then dark color paints to reduce the need for equipment cleaning. For white paints we can use intermediate tank to minimize the washing operations.

- In acrylic paints production line; Wash water generated from white acrylic paint manufacture could be reused in the next production run. Also the wastewater generated from the colored acrylics could also be stored for reuse in the next production run.

• In all production line;

- Appling quality assurance to reduce the possibility of

errors in paints preparation. - Using counter current cleaning operations to reduce

the amount of water or solvent used.



- Cleaning the tanks directly after production step to prevent materials sticking into walls. This means coordination between the production steps and cleaning operation.

- Reusing the rejected or off-spec. paints in new batches.

- Raw materials substitution; replacing the toxic pigments or dyes such as lead and chromium compounds by another non-toxic ones such as organic dyes or iron oxides.

- Controlling raw materials stock using computerized system, which facilitate the detection of any leak in the initial stages and indicate the sources of solid waste pollutants.

- Implementation of a control system involving pressure regulators on the steam lines, temperature controllers, flow controllers…

- Change from batch processes into continuous ones. - Modernize the equipment and upgrade the system. - Introduce new environmentally friendly products

(water-bases paints) to increase sales and minimize pollution.

- Improving raw materials handling, to prevent spills occur during manual unpacking of sacks and containers, and training of personnel to insure complete unpacking of containers.

- Integration (acidic and alkaline streams), and segregation of sewer lines of water and solvent based paints, to minimize treatment needs and ensure compliance with the environmental laws, can be an option for many factories. In some cases where there are several discharge points from the factory, mixing of the streams could lead to compliance. In other cases where treatment is imperative some streams could be segregated and discharged without violation. The remaining streams will require a treatment unit of small capacity.

End-of-pipe treatment

Because of the typically high content of suspended solids, TDS, TSS, O&G, COD, BOD, pH, and temp., in the paints industry waste-streams, end-of-pipe treatment frequently involves settling tanks and biological treatment. Pretreatment of effluents is required, it is normally followed by biological treatment.

1)Water-based paints

The wastewater generated from the water-based paints production line is characterized by high values of BOD, COD, S.S, TSS, and TDS. Therefore, the end-of-pipe



treatment could be as follows:

• Collection and flow equalization,

• Precipitation, using coagulants and flocculants (such as; lime, alum,…), in a homogenizing tank equipped with mixer, followed by a sedimentation tank to allow the time needed for reactions of chemicals to precipitate the dissolved solids.

• Decantation for removal of generated sludge, and drying of sludge using filter press.

• Filtration using activated carbon filter, to remove any entrained solids.

2) Resins production line

The wastewater generated from the resin production line, contain xylene and other organic compounds, this wastewater could be incinerated in the Dow-therm oil heaters instead of the fuel (Mazot or Solar).

3) Solvent-based paints

The spent solvent generated from equipment cleaning, in the solvent-based production line, could be recovered by vacuum distillation of the spent solvent, then condensation of solvent vapors. The solvent can be recycled for reuse in dilution or cleaning.

The sludge (precipitates) generated from the solvent recovery process could be dried and safely disposed into a landfill.



Abatement Measures for Solid Waste Pollution

Scrap from

workshops and garage

• Scrap metals are collected and sold.

Solid

wastes from

processes

Hazardous solid wastes sources includes chemicals sacs, packs, empty barrels, filters cartridge, materials spills, and precipitates from liquid wastes (caustic solutions and solvents) clarification by settling or distillation. The following are some ways for reducing solid waste pollution.

• Planning of packaging systems to avoid solid waste and/or to facilitate recycling of packages or packaging wastes.

• Separating hazardous solid waste from non-hazardous ones. This means separating sacs or packs containing hazardous materials such as lead or chromium compounds, from that free from such compounds.

• Gathering the empty sacs containing hazardous compounds in plastic bags, to prevent the spread of hazardous dust in the atmosphere.

• Using water-soluble sacs in making water-based paints can reduce the amount of waste sacs, as the whole sacs can be dissolved in water with their content. This could be done with pigments containing mercury compounds, or in making paints containing anti-fungi compounds, but this in turn affect the degree of shininess of paints.

• Using bag filters instead of cartridge filters, as the spent cartridge should be safely disposed into a landfill or burned, while the bag filters can be used many times. In addition, the bag filters can be washed by water or solvents, for recovery of the toxic material, and recycling of these materials with dilution liquids (solvents and thinners), then the filter bags can be dried and disposed safely.

• Using metallic screens for paints filtration process, which

can be reused after cleaning with water or solvent.

• Handling of solid materials spills, by dry cleaning methods such as; vacuum cleaner, or by wet saw dust, to prevent spreading of these materials. Also the personnel should be trained to close the grills of the internal sewer system, when leaks or spills occur, to reduce the pollution load discharged to the sewer.

• Using automatic methods for unpacking of sacs, which prevent dust spreading in the workplace, also can reduce



solid materials spills.

• Cleaning pollutants, from empty sacks and containers by solvent, should be done before storing or selling.

• Solid wastes, generated from spent solvent distillation or pretreatment of alkali solutions, used in cleaning and washing, could be safely disposed into a landfill or burned.

• Generally, recycling of incoming raw materials packaging like steel barrels, plastic barrels, nonce-use pallets, corrugated, paper bags, shrink plastic (PE) and transition to storage of raw materials in tanks. The reuse of these packages is a measure to reduce costs and amounts of waste.

Sludges from

water and

wastewater

treatment

• Effluent treatment processes generate sludge. It can also be hazardous to health by absorbing pathogens that multiply in this favorable medium and toxins. It also contain traces of heavy metals. Raw sludge is saturated with water, should be de-watered and disposed of into landfills.

• Sludge also generated from water treatment unit due to addition of lime and chemicals to water.

Water and Energy Conservation

Water and sewer service costs have been rising, and these increases can cut into profits. Using water more efficiently can help counter these increases.

Water

Conservation • Install water meters and monitor water use

• Use automatic shut-off nozzles and mark hand-operated valves so that open, close and directed-flow positions are easily identified.

• Use high-pressure, low-volume cleaning systems, such as CIP (clean in place) for washing equipment.

• Install liquid level controls with automatic pump stops where overflow is likely to occur.

• Recycle cooling water through cooling towers.

• Minimize spills on the floor minimizes floor washing.

• Repair leaks.

• Handle solid waste dry.

• Recycle steam condensate whenever economically viable.

Energy

conservation

measures

• Insulation of steam lines.

• Installation of steam traps.



• Repair or replace steam valves.

• Use the optimum excess air to perform efficient combustion process

• Install pressure regulators on steam lines.

• Return steam condensate.

• Improvement of power factor and electrical circuits.



6. Self-Monitoring, Definition and Link to EMS

The Self-Monitoring System (SMS) primarily relates to measurements of process inputs, releases and environmental pollution levels, as well as process conditions (operation controls) that are directly related to the monitored emissions. Self monitoring is necessary for the plant to improve its economic performance by identifying the sources of wastes in raw materials, water and energy, which represent the main source of pollution. Thus, the plant would be able to implement pollution prevention techniques that could reduce production costs and minimize compliance costs that lead to an improved economic and environmental performance of the plant.

In addition, self-monitoring may include reporting of the results to the competent authorities. Monitoring can be carried out by the industrial establishment or carried out on behalf and paid for by the industrial establishment. The information obtained from the sampling component of the monitoring system must be recorded and the results reported to the appropriate internal and external decision-makers.

6.1 Benefits of SM

In general, the benefits of self-monitoring results to the operators include:

• To raise awareness about the process performance and efficiency.

• To have them ready for inspection by authorities.

• To provide inspectors with more reliable data to verify the single unrepresentative samples and/or measurements.

• To raise their awareness about impact of pollutants.

• To implement corrective actions if non-compliance occurs.

• To decide on raw materials, additives, fuels, and investment strategies.

• To identify trends in plant performance and setting alarms.

• To improve process efficiency.

These benefits refer to implementing an integrated environmental self-monitoring plan that comprises:

• Emissions monitoring, which covers releases to air, wastewater, soil, and solid and hazardous waste as well as regulated work conditions.

• Monitoring of process parameters (operations controls) that are directly related to the releases e.g. temperature, pressure and humidity. In addition, process conditions e.g. shutdowns, maintenance operations and spills need to be monitored, linked to emissions and reported.

6.2 Scope and Objectives of SM As previously indicated, environmental self- monitoring comprises the monitoring of environmental releases (emissions) as well as the monitoring of process parameters (operation controls) that affect the environmental impact of the facility. The objectives of each type are separately detailed as follows:

a) Emissions Self-Monitoring The basic objective of self-monitoring is to provide information to ensure compliance with environmental regulations. As the inventory for hazardous materials and wastes is mandatory with procedures for handling and storage as regulated by law 4/1994, self-monitoring should assist in covering that area. The objectives of emission monitoring may go beyond monitoring compliance, to assist in improved environmental performance. In other words, monitoring of emissions at the process level is necessary to minimize emissions at the source through pollution abatement and prevention measures. While Egyptian regulations consider only concentration of the pollutants, self-monitoring may



include pollution loads as well as the environmental impact on the receiving media. These data are required to assess the improvement of the environmental performance.

b) Process Self-Monitoring (Operation Control)

In most industrial facilities monitoring of process operations already exists. Some process operation controls should be monitored for improved environmental benefits. The main objectives of process self-monitoring (operation control) is:

• Optimization of process operation an controlling the operating conditions

• Maximization of profit through: - Product development and operation - Energy and water conservation - Minimization of losses

• Planned maintenance and repair as opposed to emergency maintenance and shutdown

6.3 SM and Environmental Management Systems (EMS)

Aside or the regulatory aspects, SM has shown to be a necessary tool for the plant to manage its releases, control its environmental impacts and improve its environmental performance. Such achievements represent the main objectives of the Environmental Management Systems (EMS), which in turn constitute a requirement for internal monitoring, checking and implementing the corrective actions. Also, EMS encourages the industrial plants to adopt Cleaner Production (CP) and Pollution Prevention measures as the main tools for continual improvement. This can be achieved by implementing a comprehensive and effective SM plan.

The following sections highlight the concept of EMS, link to SM and link between SM and cleaner production.

6.3.1 The Environmental Management System (EMS) An Environmental Management System (EMS) is a framework that helps a company achieve its environmental goals through consistent control of its operations. The EMS itself does not dictate a level of environmental performance of the company; each company tailors its EMS to its specific business goals. Compliance with environmental laws and regulations has become a major goal that has to be attained with minimum cost. This is the minimum level for environmental performance achieved through the EMS. In general, an EMS comprises five phases leading to continual improvement; commitment and policy, planning, implementation, evaluation and review. These phases will be herein explained within the context of the standard system “ISO 14000”, which is internationally recognized. With regard to Egypt, this system is being gradually implemented by the Egyptian Industry. The different stages of the EMS form a cycle (Fig. 29) that allows feedback of information and continuous improvement. This system includes the following elements:

1. Environmental policy. Top management commits to an

environmental policy that comprises, as a minimum, compliance with laws and regulations, pollution prevention and continual improvement.. The policy is the foundation of the EMS.

2. Planning: A company first identifies environmental aspects of its

activities. Environmental aspects are those items such as air pollutants or hazardous wastes that can have negative impacts on



people and/or the environment. Once the relevant laws and regulations are determined, the company sets objectives and targets. An objective is an overall environmental goal (e.g. minimize use of chemical x). A target is a detailed, quantified requirement that arises from the objective (e.g. reduce use of chemical x by 25% by September 2002). The final part of the planning stage is devising an action plan for meeting the targets. This includes the schedule, and the clearly defined steps to meet the targets.

3. Implementation. This phase comprises the establishment of the

structure, assignments and responsibilities of the designated personnel. An important component is employee training and awareness for all employees. Other steps in the implementation stage include documentation, document control, implementing operation procedure, and setting up internal and external communication lines. In addition, an emergency and preparedness plan has to be developed.

4. Checking and Corrective Action. The company monitors its

operations activities to ensure that targets are being met. If not, the company takes corrective action and keeps records for the emissions and environmental performance. Internal audit is a key element to improve the system.

5. Management Review. Top management reviews the results of the

evaluation to see if the EMS is efficient and effective. Management determines whether the original environmental policy is consistent with company values. The plan is then revised to optimize the effectiveness of the EMS. The review stage creates a feedback of information necessary for continuous improvement.

Environmental

Policy

Planning

Management Review

Implementation

Checking and

Corrective Action

Continuous Improvement



Fig. (29) Phases of EMS Cycle (ISO 14000)

6.3.2 Link between Self-Monitoring and (EMS)

As previously explained an EMS e.g. ISO 14000, comprises 5 stages; environmental policy, planning, implementation, checking and corrective actions. By analogy, the self-monitoring system (SMS) can be looked at using the same concept. Taking into consideration the definition, concept and principles of self-monitoring, as stated in the “Guide Book on Self Monitoring, the elements of SMS can be rearranged as follows:

Commitment: In general, an effective self-monitoring requires the management of the plant be committed to environmental compliance, as a minimum. However, this commitment will be an integrated part of the environmental policy in the EMS, if exists.

Planning: The planning of the SM is mainly based on objective (s) that have been set. For a basic SMS, the objective would be monitoring of regulated parameters to assist in achieving regulatory compliance e.g. end-of-pipe emissions and discharges. In an advanced SMS, the objectives may include monitoring of operation controls as well as emissions and wastes at the source, to help in implementing pollution prevention and cleaner production measures. In all cases, the objectives of self-monitoring should be in line with the objectives of EMS, if exists. In such case, the self-monitoring plan can be part of the EMS plan and includes: • Description of the regulatory limits for compliance

• Brief description of the actual situation of existing monitoring activities (processes and parameters monitored): - Devices, and equipment used (type of devices, and frequency of measurements) - Available resources.

• Objectives and targets with time frame for implementation.

• Identification of parameters monitored, location of monitoring points and preparation of a self-monitoring schedule.

• Description of methods and procedures used for sampling, analyses, measurements, calculations, recording and data manipulation.

• Description of tasks and responsibilities.

• Training program.

• Information flow.

Implementation: The implementation of SM means that the tools and mechanisms for collecting the relevant data are functioning. On the other hand, the implementation phase in EMS means that the environmental performance of the plant is improved.

The implementation of SM results in large amount of data that need representation, interpretation and reporting in order to be useful as tools for decision making for corrective actions. The decision making requires knowledge about the status of:



• Control and optimization of process performance (Process operating parameters)

• Emissions, effluents, solid waste, toxic and hazardous releases: concentration, load, handling procedures and transfers and comparison with environmental limit values (ELVs)

• Maintenance and repair.

• Percentage losses of raw materials, products and utilities.

Evaluation: Evaluation of the self-monitoring plan through regular auditing will allow its continuous improvement. Evaluation should include all aspects of the plan (training, meeting targets, reliability of data, efficiency of devices,…etc). On the other hand, the evaluation of the EMS involves checking and taking corrective actions of all system components, including the monitoring activities.

Review: On the basis of the evaluation of the monitoring plan, a review can be made of the monitoring objectives and targets. In case of EMS, the management review covers all the involved procedures, including monitoring activities. It is clear from the above explanation that self-monitoring is an integral part of any EMS. More specifically, self-monitoring is the tool for the evaluation function of an EMS. Figure (30) illustrates relationship and interaction among the main elements of EMS and SMS.

6.3.3 SM Link to Pollution Prevention and Cleaner Production With the growing understanding that escaping raw materials, chemicals and products constitute major pollution sources, industry has opted to implement pollution prevention measures at the source. These measures include in-plant and in-process modifications as well as resource conservation (minimization of water and energy consumption). The implementation of these measures will decrease the end-of-pipe treatment cost. However, plant management will have to undertake a cost-benefit analysis to determine which measures are economically viable.

Self-monitoring is the tool that helps undertake these analyses by providing the necessary information about process inputs and outputs as well as the framework for performing the required tasks.

The introduction of emission monitoring for the purpose of improved environmental performance through the application of cleaner technology widens the objectives of the plant EMS beyond compliance with relevant laws and should be met with economic incentives from the part of the competent authorities.

6.4 Regulatory Aspects In developed industrial countries e.g. Europe, the competent authorities must approve the monitoring program, specify the standards and quality requirements for self-monitoring that are to be achieved by the operator, and ensure those possibilities for cheating and fraud are minimized. The competent authorities will receive self-monitoring reports periodically from the operator. These should provide summary information, following data



reduction, in a format facilitating easy comparison with permit limits. Additionally, the competent authorities should inspect the operator’s self-monitoring records, including log sheets covering sampling, analysis, instrumental monitoring, and data-reduction calculations. 6.4.1 SM and Environmental Register

According to law 4/1994, industrial facilities (operators) are required to keep a record of their inputs, outputs and releases in the environmental register as stated by which implicitly requires some sort of self-monitoring. The Egyptian Environmental Affairs Agency (EEAA) is mandated to check the validity of the data in the Environmental Register. The responsibilities of the operator and the competent authority are not affected by who carries out the monitoring. It is the responsibility of the operator to comply with laws and regulations. On the other hand, the competent authorities (inspector) are responsible for assessing and ensuring the operator’s compliance. When combined with Self-monitoring, Environmental inspection competent authorities benefits from combination of inspection with SM through:

• Utilizing the operator’s knowledge and experience of his process in planning and carrying out a monitoring program that can lead to improved control over releases to the environment.

• Self-monitoring will normally provide more information than may be obtained by periodic inspection by the competent authorities.

• Providing a mechanism for educating the operator about the requirements for complying with relevant laws, regulations and permits and for increasing of management responsibility for compliance and the impact of process releases on the environment.

6.4.2 SM and Inspection Self-monitoring does not constitute self-regulation. SM provides additional information on which the competent authorities can judge whether an operator is complying with relevant legislation and conditions of permits. It does not change the duty of the competent authority to assess compliance by means of inspection and by performing its own monitoring or choose to rely on the operator’s monitoring data or a combination of both. The competent authority continues to be responsible for enforcement. As mentioned above, SM provides a wealth of information that can be utilized by the competent authority in reviewing standards and developing applicable environmental policies. However, the competent authority will have to check the reliability of the SM data. Thus, inspectors may be required to check the SMS plan, Quality Assurance and Quality Control (QA/QC) procedures, data handling and documentation. In this context, it is expected that inspectors may perform the following tasks: • Check the SM program.

• Check and verify the specified measurement standards.

• Check the reliability of the data (by carrying out independent monitoring).

• Inspect SM arrangements such as: - The positioning and serviceability of fixed instrumentation and check representative

ness of the monitoring. - Records confirming the maintenance and calibration of instrumentation and sampling

equipment. - Manual sampling and analytical procedures.



This expected interaction will help both partners i.e. the operator and the competent authority in achieving their objectives in terms of reliability of emissions data and environmental performance.



EMS Policy Statement

Planning • Environmental Aspects

• Regulatory Requirements

• Objectives and Targets

• Environmental program

Implementation • Structure & Responsibilities

• Training awareness

• Documentation

• Documents control

• Operations control

• Communications

• Emergency response

Evaluation of EMS

Review of EMS: policy, objectives, program and

procedures

Policy Statement

Planning • Define Scope

• Identify Monitored Parameter

• Establish Monitoring Program

SMS Policy Statement

Implementation • Environmental Monitoring

• Operation controls

• Development of Person skills

• Internal & External Reporting

• Q/A & Q/C of data

• Documentation

Evaluation of SMS

Review Objective & SM Plan

Fig. (30) Relationship between EMS and SMS



7. Planning of SM Planning for SM starts by setting the objectives. It should be clear that a number of process control parameters needs to be monitored, along with environmental monitoring. For the purpose of this manual environmental self-monitoring will be considered in addition to monitoring of process parameters that are related to emissions (operation controls). Compliance monitoring requires measurements, analysis and data on end-of-pipe releases, whereas operation controls target the production units that offer pollution prevention opportunities. The environmental manager with the help of various sector managers should carry out the planning activities.

With reference to ”Guidebook for Industrial Self-Monitoring”, the main elements of the Self-Monitoring Plan, that describes the SMS, include: • Objectives and results required from the self-monitoring system

• Organization and share of responsibilities and tasks

• Planning activities and design of an implementation schedule

• Definition of the parameters and relevant monitored indicators to reach the objectives

• Design of an appropriate measurement and sampling program

• Data processing and reporting procedures

• System for follow-up of decisions, actions and monitoring development

• Quality assurance and control

With reference to the Guidebook for Industrial Self-Monitoring the objective of the SMS can be limited to provide the data required for the Environmental Register which is mandated by the Environmental Law, e.g. total inputs, outputs and emissions on the plant level. This objective ”compliance with regulations” requires the ”Basic Self-Monitoring System” which comprises the minimum requirements. In these cases where self-monitoring is not mandatory, operator can build a ”basic” self-monitoring system that focuses on the regulated emissions, as a minimum. Then, the system can be gradually upgraded, ”continual improvement” through internal auditing of all system components. Other objectives, e.g. waste minimization, pollution prevention and improved environmental performance require upgraded SMS that includes monitoring of inputs, outputs and releases on the level of operations and detailed processes. In all cases, the established SMS should be gradually improved and upgraded, considering the plant financial and economic constrains. The following sections are detailing the stepwise activities that are needed to develop a viable realistic, and applicable plan for a self-monitoring system.

Fig. (31) presents the various steps for the preparation and implementation of a self-monitoring plan.


Environics September 2002

79

Management Awareness

and Commitment Objectives

Selection of In-House Responsible

Person(S)

Contract Outside

Assistance

Laboratory Consultants

Process and

Existing

Monitoring

Select Parameter to be

Monitored

Write Self-Monitoring

Plan

Execute Self-

Monitoring Plan Continual

Operation

- Measurements - Samplings - Analysis - Data collection - Data evaluation

- Data reporting

Identify standard Methods for Sampling, Analysis and

Measuring

Select Monitoring

Location

Define Monitoring

Schedules

Review and Modify the

SM Plan

Pre-Monitoring

Survey

Fig. (31) Steps for the Preparation and Implementation of a Self-Monitoring Plan



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7.1 Assessment of Existing Monitoring Capacity Assessment of existing monitoring capacity includes the following aspects: • Management system: presence of an EMS, existing system for data collection and

reporting.

• Human resources: available personnel, level of training; motivation.

• Technical resources: monitoring equipment and laboratory, status of equipment

• Financial resources: available budget for self-monitoring activities.

Table (17) presents an example of a checklist for existing self-monitoring activities.

Table (17) Example for Assessing the Status of

Existing Monitoring Activity

Monitored activity

Location Parameter Associated tasks

Person in charge

Time schedule

Wastewater Final discharge

Flow rate Recording flow on flow meter

Operator X

Daily

Inspect meter Supplier

Calibrate Operator Y

Data analysis, representation

Lab staff

BOD, COD, TDS, TSS, S.S, O&G, pH, color, heavy metals

Grab sample Lab technician Once a week

Sample preservation

Lab staff

Analysis Lab staff

Review results and reporting

Chief of Lab

7.2 Identification of Key Parameters The identification of key monitoring parameters requires an understanding of the manufacturing processes and the operation of the various units. The brief description provided in section 2 and the relevant tables can help identify some of these parameters. However, a pre-monitoring audit is necessary to determine sampling and measurement locations and schedules needed to design the self-monitoring plan. Priority should be given to parameters that determine compliance with environmental laws. A table describing the monitoring activities can be prepared for process and compliance monitoring. The exact positions of the monitoring points within the production line have to be determined on a case by case basis by production experts, according to the following criteria (SM Guidebook, EPAP 1999):

• Representativeness of the monitoring point.

• Criticality of the monitoring point



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• Accessibility of the monitoring points The choice of the parameters is determined by the type of production, the legal requirements, the nature of the pollutant and its load, and the importance of the parameter for decision making. For each of the proposed parameters the trends and variations should be monitored in addition to the value of the parameter at a given time.

7.3 General Data Required When assessing the performance of the operation and its impacts on the environment, some basic information is needed to put the monitoring data into the context of interpretation. Such information is about:

• Identification : Name, address, plant location, name of owner, manager and head of environmental department.

• Inputs name, type and amount: Raw materials, chemicals, fuels, water, steam, electricity.

• Technology: Description of process, applied technology, operating conditions (temperature, pressure, …etc.), maximum capacity, operating capacity during monitoring.

• Outputs name, type and rate: Products, by-products.

• Abatement techniques: Air pollution prevention, wastewater treatment, solid and hazardous waste management, noise abatement.

• Emissions and their sources: receiving media, pollutant type, concentration and load, pollutant impact.

• Existing EMS system, analyses and measurement results, relevant environmental laws and allowable pollutant levels.

• Assessment of legislative and regulatory requirements.

7.4 Data collection, Manipulation and Reporting Data collection and analysis should be carefully planned according to the following principles:

• Base the analysis on trends over a long period to take into consideration the shock loads that characterize the paints industry.

• Determine the causes and degree of variability of a parameter. A dramatic change of a low-variability parameter may be interpreted as a sign of anomaly of the process. This will require an investigation to find the potential source of the problem and take the right corrective action.

• Study the correlation between different parameters. The cause of variation for a highly variable parameter may be correlated to another parameter.

A considerable amount of data may be generated by the operator carrying out self-monitoring especially when continuous monitoring instrumentation are used. Data reduction is necessary to calculate time-averaged means, percentile values and the like. When compliance data are recorded in the environmental register the relevant calculations for data reduction should be specified. Measured values are used to form half-hourly mean values for each successive half-hour to generate frequency distribution. For each calendar day a daily mean value, related to the daily operating time, is calculated from the half-hourly mean values and kept on file. Measurement results should be kept in the environmental register for at least 10 years (Article 22 of law 4/1994 and 17 of its executive regulations).



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An annual report is prepared on the outcome of the measurements including information on:

• Measurement planning

• The outcome of each individual measure

• Measurement methods used

• Operating conditions that are important for the assessment of individual data and measurement results.

7.5 Criteria for Selecting Monitoring Method The choice of monitoring method used to determine the value of the parameter depends on the specific features of the process, the emission sources, the physical state and properties of the sample and the nature of emissions from the operation. The latter can be classified as:

End-of-pipe Normal

emissions (point

source)

Occur during normal operation and normal process and abatement technique conditions. These emissions are generated from point sources (e.g. flue gases from stacks (boilers, and Dow-therm oil heaters), process vents (reactors), boilers blow-down, softeners back-wash, spent solvents (equipment cleaning), …etc.

Diffuse and fugitive

emissions

These are emissions from a certain process but from scattered points such as emissions from ventilation ducts, barrels, pumps, valves, compressors, scattered small storage’s. The diffuse emissions are calculated/estimated by monitoring the source periodically and assessing the long term emission from the measurement results or by mass balance calculations.

Exceptional

emissions (start-up,

shut-down,

maintenance,

malfunction)

Exceptional emissions refer to varying input or process conditions, start-ups, shut-downs, by-pass of a process for malfunctioning and accidental causes, and maintenance operations.

The emissions can differ from those of normal operation in their volume and/or concentration. These emissions can be multiple compared to normal emissions. It can be impossible to measure the concentration or volume of the exceptional emissions as the measuring device is calibrated according to the normal operating conditions. Estimation techniques should then be performed.

There are four basic methods that may be used to develop estimates:

• Direct or indirect measurement

• Mass balance

• Emission factors

• Engineering calculations



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7.5.1 Direct or Indirect Measurement

a) Direct measurements: Using monitoring data or direct measurements is usually the best method for developing chemical release and/or other waste-management activity quality estimates. Data may have also been collected for the facility through an occupational health and safety assessment. If only a small number of direct measurement data is available or if the monitoring data are not based on a representative sample, another estimation method should be used to give a more accurate result.

Note : Treatment Efficiencies Supplier data on treatment efficiencies often represent ideal operating conditions, should be adjusted to account for downtime and process upsets during the year that would result in lower efficiencies. Efficiencies reported by supplier are often general and may not apply to specific chemicals. For example, an incinerator or flare may be 99.99% efficient in destroying organic chemicals, but will have a 0% efficiency in destroying heavy metals.

For successful measurements the following considerations should be satisfied:

• The frequency of measurement and sampling must cover temporal variations of the process and specifically the period during which harm occurs.

• Continuous monitoring is suitable for large emission sources, such as stacks and wastewater canals except in cases where high temperature or corrosive substances are involved. At smaller sites the cost of continuous monitoring is weighed against the value of the monitoring results and the possibility of obtaining representative results from periodic measurements.

• Utilization rate (percentage of continuous monitoring time to total operation time) should be known when performing continuous monitoring.

• The process conditions must be specified when monitoring takes place (e.g. start-up, shut-down, production rate, operating production lines, failure of abatement equipment).

b) Indirect measurements: These are performed through surrogate parameters. Surrogate parameters are variables that can be closely related to conventional direct measurements of pollutant releases or impacts and which may therefore be monitored and used instead of direct values for some practical purposes. Surrogates are commonly used in operation control as they give an early warning of possible abnormal conditions or emissions. Surrogates may provide a relative measurement rather than an absolute value and may only be valid for a restricted range of process conditions. On the other hand, surrogates can provide more continuous information than direct measurements. It is also often cost-effective as it allows more discharge positions to be monitored for the same resources. Table (18) summarizes the advantages and disadvantages of surrogate parameters. A surrogate can be used for compliance monitoring purposes if all the following conditions are met:

• It is closely and consistently related to a required direct value (e.g. fuel sulfur vs. directly measured SO2, relationship between opacity and particulate concentration, condenser temperature and VOCs emissions).

• It is regularly calibrated against the direct value.



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• It is cheaper or easier to monitor than the direct value, or gives more frequent information

• Its value can be related to specific limits

• The process conditions where it is measured matches the conditions where direct measurements are required.

• Any extra uncertainty due to use of surrogate is not significant for regulatory decisions or process management.

Table (18) The Advantages and Disadvantages of Surrogate Parameters

Advantages Disadvantages

• Cost savings.

• More continuous information e.g. continuous opacity vs. periodic dust sampling.

• Allow more positions form discharge monitoring.

• Sometimes more accurate e.g. fuel sulfur vs. SO2 .

• Give early warning of possible abnormal emissions e.g. combustion temperature warns for increase in dioxin emissions.

• Causes disruption to process operation.

• May combine information from several direct measurements e.g. temperature indicates energy efficiency, emissions and process control.

• Need cost for calibration against direct values.

• May provide relative measurement rather than an absolute value.

• May not valid only for a restricted range of process conditions.

• May not command as much public confidence as direct values.

• Sometimes less accurate.

7.5.2 Mass Balance

A mass balance involves determining the amount of chemical entering and leaving an operation. The mass balance is written as follows:

Input + Generation = Output + Consumption

• Input refers to the materials (chemicals) entering an operation. For example, caustics added to equipment wash water would be considered an input to the wastewater treatment operation.

• Generation identifies those chemicals that are created during an operation. For example, when nitrogen sources are used in biological wastewater treatment systems, additional ammonia may be produced (generated).



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• Output means any stream by which the chemical leaves the operation. Output may include on-site releases and other waste management activities to the environment, storage, or disposal ; or the amount of chemical that leaves with the final products. In paints manufacturing operations, for example, pigments in the paint may leave the operation as product losses and leakages, on the ground that could be sent to sewer, and in the cleaning solvents/ solutions (waste effleuent), or emissions in the work environment that could be collected into the filters and sent for disposal.

• Consumption refers to the amount of chemical that is converted to another substance during the operation (i.e., reacted). For example, caustic soda would be consumed by a neutralization process during wastewater treatment.

The mass balance technique may be used for manufactured, processed, or otherwise used substances. It is typically most useful for chemical that do not become part of the final product, such as catalysts, cleaning solvents and alkalis. For large inputs and outputs, a mass balance may not be the best estimation method, because slight uncertainties in mass calculations can yield significant errors in the release and other waste management estimates. Therefore mass balance is not accurate enough method for estimating process and combustion emissions.

Material balance calculations are also used to examine the effects of emission reduction on the material balances of the plant. A material balance calculation gives an impression of the magnitude of the emission of a specific substance but can not show accurate emission amounts, nor their division between emissions into the air, water discharges, or solid wastes. Material balance calculations are often based on evaluated process flows and concentrations. Calculating a reliable average emission level for a factory means long term monitoring of the processes and statistical examination.

7.5.3 Emission Factors

An emission factor is a representative value that attempts to relate the quantity of an emission released with an associated activity. These factors are usually expressed as the weight of emission released divided by a unit weight, volume, distance, or duration of the activity (e.g. kg of emission released per kg of product). Emission factors have been developed for many different industries and activities. Emission factors depend on the technology used, raw materials , and pollution control devices. Emission factors can be obtained from industrial database e.g. DSS (available at EEAA).

Note Sources of information on emission factors should be carefully evaluated and the conditions for using

the factors reviewed to determine if it is applicable to the situation at the facility.



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7.5.4 Engineering Calculations

Engineering calculations are assumptions and/or judgments used to estimate quantities of listed chemicals released or managed. The quantities are estimated by using physical and chemical properties and relationships (e.g. Raoult’s law, Ideal gas law) or by modifying an emission factor to reflect the chemical properties of the toxic chemical in question. Engineering calculations rely on the process parameters; thorough knowledge of the operation is required to complete these calculations.

Engineering calculations can also include computer models. Several computer models are available for estimating emissions from landfills, wastewater treatment, water treatment and other processes.



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8. Monitoring of Raw Materials, Utilities and Products

Inputs and outputs data is needed for estimating the nature and amount of the releases when assessing the reliability of the monitoring results. The input data includes the quantity and quality of raw materials, chemicals, fuel and water used.

8.1 Raw Materials and Chemicals

The amount of raw materials received per day and cost/kg are important monitoring parameters. The quality of raw materials is assessed by chemical tests before acceptance. Some factories store the rejected raw materials until it sent back to the contractor (Table 19).

Table (19) Monitoring of Raw Materials and Chemicals

Parameter Monitoring Method Indication Amount of raw materials and chemicals (pigments, fillers, binders, solvents, driers, plasticizers, …etc.) necessary to produce 1 ton of product.

Weighting, measuring, calculation and material balance, book keeping and recording.

Rationality in the use of raw materials.

Quantity of rejected raw materials per unit of product.

Weighting, measuring, calculation and material balance, book keeping and recording.

- Losses. - process efficiency. - storing or handling problems.

Quality of raw material Specific criteria (Analysis):

• Pigments

− Assay (metal content

− Oil absorption

− Fineness (grindness)

− Color (full, reduced)

− Moisture content

− pH

− Specific gravity

− Coverage

• Fillers (extenders)

− Oil absorption

− Fineness (grindness)

− Color (full, reduced)

• Resins/polymers/oils

− Non-volatile %

− Acid value

− Iodine number

− Viscosity

− Color

- Avoiding possible production problems due to bad quality. - Maximize productivity. - Minimize the quantity of refuse products. - Identifying raw materials harmful for the environment if discharged with the wastes generated.



88

Table (19) Monitoring of Raw Materials and Chemicals (continue) Parameter Monitoring Method Indication

• Emulsions

− Non-volatile %

− pH

− Viscosity

• Solvent

− Specs distillation range


− Boiling point

− Refractive index

− Color

• Dryers

− Metal contents

− Evaluation of drying speed (non-volatile percent)


• Dispersing agents

− Wet ability


− Refractive index

− Evaluation of drying speed (non-volatile %)

• Antifoaming agents


− Evaluation of drying speed (non-volatile percent)

Cost of the raw material necessary to produce 1 ton of product.

Book keeping Assess economical burden due to non rational use of raw material and possible avoidable extra costs.

Proportion of the cost of raw material in the cost of product & its variation

Book keeping Assess economical burden due to non rational use of raw material.



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8.2 Utilities Monitoring of energy consumption takes into account the different forms of energy. It is important to note that heat and electricity cannot be summed up, as they are not commensurate. The energy efficiencies of heat and electricity should therefore be dealt with separately (Table 20).

Table (20) Monitoring of Utilities

Parameters Monitoring Method Indication

Energy consumption per ton produced • Electricity

• Fuel

Consumption measurements and book keeping

Energy use efficiency

Fuel flow (gauge accumulator)

Repartition between the different types of energy used (steam, heating oil).

Recording and book keeping Energy use efficiency

Water consumption per ton of product and its variability.

Flow measurements, book keeping and recording

Water use efficiency, most of the discharge related parameters are calculated

Quality of the utilities

Steam : Pressure level Degree of saturation.

Wash water : Pressure, temperature

According to the specific criteria

Impact on the smooth running and efficiency of processes

Boiler water: quality

Electric power : Voltage level



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8.3 Products The most important parameters that need monitoring are presented in table (21)

Table (21) Monitoring of Products

Parameters Monitoring Method Indication

Amount produced

• Final product (water-based paints, solvent-based paints, resins, varnishes, and inks)

Recording and book keeping:

• Paints

− Viscosity

− Density

− Grindness

− Gloss

− Drying time

− Coverage

− Mechanical hardness

− Bending

− Impact on metals

− Cross-cut adhesion

− Film application

− Color

• Resins

− Non-volatile %

− Color

− Viscosity

− Acid value

− Iodine value


− Drying time

− Gloss

− Hardness

− Flexibility

− Packaging stability

Production statistics

Rejects as a percentage of the total production, per unit of time

• Final product ( out of specification, expired date)

• In- line rejects

Recording (quality control)

Production quality, avoidable expenses



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9. Operation Control Processes should be operated at the optimum operating conditions to ensure disturbance-free operation, safety, highest yield and productivity as well as product quality. Operation control deals with the control and monitoring of key parameters that affect environmental performance. These key parameters are monitored to minimize losses and therefore pollution. Planned maintenance (regular) is important to facilitate disturbance-free operation as well as minimize pollution and improve environmental performance.

9.1 Monitoring Process Parameters

Tables (22) a and b present the major processes in each production line and utility respectively, and the parameters that should be monitored to minimize losses, maximizing productivity and predict maintenance and repair needs.



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Table 22 (Attached below)



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9.2 Planned Maintenance Maintenance can be classified broadly into planned and emergency maintenance. Various types of planned activities (preventive, predictive) are undertaken with the basic objective of avoiding the need for emergency (breakdown) maintenance and the corresponding loss of plant profitability. The cost of an unscheduled breakdown resulting in loss of production can be substantial, and the cost of repairs may also be considerably higher than the cost of routine, planned maintenance of the equipment. A PM (preventive maintenance) program must include the following basic elements (Table 23): • Inventory of equipment with detailed design and operating parameters. The operating

parameters are monitored and are indicators for predictive maintenance.

• A record of failure rate and causes

• Evaluation of condition of equipment using the following criteria: - Maintenance cost per unit of product. - Downtime due to maintenance - Percent of planned maintenance hours as compared with emergency maintenance

• Determination of corrective actions. It is clear from the above paragraph that maintenance is a pollution prevention measure as it increases the efficiency of the unit, minimizes water consumption by preventing leaks, helps conserve energy through proper maintenance of electric and mechanical equipment as well as insulation of steam pipes. The following are examples of typical maintenance procedures for some service units operated in chemical plants:

Compressors Routine checking should include:

- Testing for leaks - Checking refrigerant charge - Checking oil level and lubrication

Boilers and

steam lines

There are many items to be checked to prevent explosion, such as checking operating procedures, detection of flame failure, detection of unburned combustibles. With respect to energy conservation, the maintenance of steam traps, steam valves and insulation of steam lines is important. The following parameters should be monitored: - Water level in the boiler - Water quality to prevent the build up of scales that reduce heat

transfer rates - Temperature of metal, gas and water - Pressure - Fuel to air ratio

Dow-therm oil

heaters

The primary consideration in the maintenance of heaters is to avoid conditions that might result in an explosive fuel/air mixture. - Check the fuel supply for leaks - Check air supply for leaks - Check the flue gas temperature.



94

Table (23) Monitoring and Preventive Maintenance

Parameters Monitoring method Indication Total number of shut downs and production interruptions.

Recording number and reason for shut down.

Overall assessment of the process reliability and avoided environmental loads.

Number of equipment failures resulting in production shut down per type of process and type of equipment.

Recording number and reason for failure.

Critical equipment.

Process performance monitoring.

Methods depending on the performance criteria.

Process performance/ efficiency of equipment.

Process equipment condition monitoring.

Numerous methods, inspection, testing.

Prevention of failures.



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10. Environmental Monitoring Environmental Monitoring covers emissions to air, effluent and solid and hazardous wastes. Section 4 presents the various laws and regulations that apply to emissions, effluents and wastes from the paints industry. Expected pollutants and hazardous releases from the industry are specified in section 2.4. For each production line related pollution aspects are identified in section 2.2., Figures 22-27 The pollution aspects of service units are presented in section 2.3 and Figure 28 The output from the measurements and analysis of the parameters are recorded in the environmental register of the facility. Tables 24, 25, 26 present the compliance monitoring activities for the different aspects of pollution as per environmental laws.

Monitoring of pollutants and releases requires careful consideration of the techniques being used because of the expected effect on the interpretation and hence, the reliability of the collected data. The common techniques used in monitoring will be explained in next section.

10.1 Emission to Air Air emissions can be measured either on periodical or continuous basis, the monitored parameters for point source combustion emissions are : NOx, SO2, CO, CO2, ashes, and particulates. Parameter monitored fugitive emissions depend on the specific production process.

Periodical measurements Periodical measurements give the state of emissions over the chosen sampling time. Quantities needed in every emission calculation, such as volumetric flow rate, oxygen content, and humidity of the flue gases, are determined by periodical measurements. Periodical measurement results are also used as a support for converting the continuous concentration measurement results into annual emissions.

Periodical measurements are carried out as manual single measurements or as short period continuous measurements by the plant itself or by an exterior measurer. Periodical emission measurements are carried out annually for the following emission components NO x, SO2, CO, CO2 and particulates.

Continuous measurements The continuous measurements describe the temporal variation of the concentrations and volume of the emission components during the operation. General requirements for continuous monitoring systems are that the sampling locations should be representative and that the monitoring equipment should be suitable for the concentrations to be monitored in the prevailing circumstances. The emission control data system should preferably be part of the process control system. SO2, particulates and CO are generally measured continuously. Emission calculation Differences between the different calculation methods can cause mistakes when comparing the environmental loads of different plants. Material balance calculations are used to complete emission measurements in order to get an



96

impression of the reliability of the measurement results as well as to create a general view of the total emission level of each component. The amount of diffuse emissions that can not be recorded by emission measurements can be substantial.

10.2 Effluents (wastewater) The regulations set the limits for the concentrations of specific pollutants in wastewater when discharged to a recipient body. For monitoring purposes, the discharge values for specific substances or parameters are mostly expressed as total amounts per unit time. In some cases these values are given as specific amounts per ton of product or as purification efficiencies. Limit values are set for a large number of parameters such as COD, BOD5, O&G, TDS, TSS, pH, color, heavy metals (iron, copper, chromium, cadmium, lead, zinc, nickel, …).

Monitored parameters Typical wastewater parameters include the following:

• Wastewater flow (Q), m3/d

• Total suspended solids (TSS), mg/l

• Total dissolved solids (TDS), mg/l

• Oil and grease (O&G), mg/l

• Heavy metals (iron, copper, chromium, cadmium, lead, zinc, nickel, …), mg/l

• Chemical oxygen demand (COD)

• Biological oxygen demand (BOD5)

• pH

• Color

Flow measurement Measuring of the total wastewater flow is required for the operation of the wastewater treatment plant. There have been no provisions on the procedures or the accuracy of a flow measurement, but installation of automatic composite samplers (preferable flow dependent) can be used. Wastewater flow is usually measured with a venturi measurement equipment, but also magnetic and ultrasonic methods are used. Measurement equipment is maintained several times a year and the measurement system is calibrated regularly.

Regular maintenance, control and calibration are needed to obtain an acceptable measurement accuracy level. The structure of the measurement system, a possible mounting fault or a false choice for measurement area can cause errors. Other sources of error or factors disturbing the measurement are dirt deposition and temperature variations. Evaluation of the total error is extremely difficult, as it must include all these factors.

Sampling Well realized sampling is essential for determining of wastewater discharges. There are general instructions for wastewater sampling. However, industry-specific problems such as variation of the wastewater quality or flow rate have to be solved case-by-case. Samples are either single grap samples, composite samples, or composite samples in proportion to the flow. A single grap sample reveals the composition of the wastewater at the sampling time. With several grab samples it is possible to follow the wastewater load peaks, quality variation and the variation range of the significant parameters. A composite sample reveals the average composition over a chosen period. A 24 hour composite sample is normally taken in proportion to the flow so that the sampler is controlled by flow meter.

Sampling period and sample size are considered case-by-case depending on the analyses used and on the issues affecting the reliability of sampling and analyses. Samples for wastewater analysis are mostly taken over 24 hours, 5-7 days a week. In some cases samples are frozen and combined to cover a longer period. Samples for COD and suspended solid determination



97

are taken daily or continuously and analyzed daily. Samples for BOD and nutrient determination are usually taken weekly. PH, temperature, and conductivity are usually measured continuously.

Analyses A specific analysis program is needed for each plant. The program usually covers a wide range of measurements and analyses, as predetermined in the self-monitoring plan. The measurements and analyses should be carried out according to the standards recommended by EEAA “Methods for sampling and Analysis of Water and Waste Water” October 1999”

Calculations Wastewater discharges are calculated and reported according to the specifications determined in the monitoring plan. Discharges are often calculated as below:

Discharge per batch The equipment cleaning wastewater or solvents can be calculated as follows; amount/ equipment * number of equipment * average number of batches / day.

Discharge per day The arithmetic mean value of the daily samples taken during one month divided by the number of sampling days.

Discharge per month Daily discharge multiplied by calendar days.

Discharge per year Sum of the values of monthly discharges

The efficiency of biological wastewater treatment is also controlled by calculating the reduction of organic matter (BOD,COD) between untreated wastewater before primary sedimentation and treated wastewater after secondary clarification.

A typical wastewater discharge monitoring report includes e.g. monthly mean values and variations for discharges at the monitoring points before and after the treatment, applicable limits values and also some production information.

10.3 Monitoring of Solid Wastes The properties of solid wastes that are generated, especially when they are utilized or taken to a landfill, have to be investigated. The general principles in landfill operation are that the composition, leachability, long term behavior and the properties of the waste have to be known. The approval for using a landfill for a specific waste is based on the origin and the properties of the waste. The evaluation of the properties of the waste is based on:

• The composition of the waste.

• The organic content and degradation properties of the waste,

• The content and leachability of harmful compounds, and

• The ecotoxicological effects of the waste and the landfill waters Table (25) presents a compliance monitoring plan for the solid wastes.

10.4 Monitoring of Hazardous Wastes Management In order to comply with the law regulations, the industrial establishments are required

to take all necessary measures to properly manage their hazardous waste on site. Law

4/1994 and its Executive Regulations address the measures to be implemented at the



98

different stages of the management process starting from the reduction of waste at

source through to identification, collection, on-site storage, on-site treatment,

transport for off-site disposal, as well as keeping records (Environmental Register).

Following are the main requirements to be implemented by an industrial

establishment generating hazardous waste. These requirements are summarized in

table (26). Details for these requirements are presented in sections 4.2.2 through to

4.2.10 of the EPAP Hazardous Waste Management Manual for Industries, 2002.

Figure (32) shows the hazardous waste management options for paints industry.



99

Table 24 (Attached Below) Table 24(Attached Below) Table 25(Attached Below) Table 26 (Attached Below)

Spent cleaning solvent

Filters sludge containing paints and solvents

Chemicals empty

containers

Spent filter cloths containing paints and solvents

Solvent recovery unit Sludge generated from the wastewater treatment unit

containing paints and solvents

Sludge containing paints& solvents

Landfill

Incinerator

Ashes

Cleaning with solvents

Spent cleaning solvents

Alternative 1 Alternative 2

Figure (32) Hazardous Waste Management Options



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11. Data Collection, Processing and Usage

The general objective for the self-monitoring system is to produce data that is representative, repeatable, reliable, compatible and comparable. These characteristics are dependent on the applied measures for quality control and quality assurance throughout the data production chain i.e. volume determination, sampling, sample pretreatment, treatment and analysis, data processing and reporting.

11.1 Data Collection and Processing The different parts of the monitoring system of a plant include diverse factors affecting the reliability and comparability of the emission data. These factors have to be taken into consideration in sampling, sample treatment and analysis as well as in processing and reporting of the data. Requirements for the whole data production chain should be set in the monitoring program. In addition, implementation of the relevant measures for quality control and quality assurance is extremely important in obtaining maximum reliability, repeatability and comparability.

The aspects and parameters that are involved in data collection and processing are explained in the Appendix A. Figure (33) shows the main aspects and parameters that affect the effectiveness of SM in terms of reliability, repeatability and comparability.

11.2 Using SM Outputs

The implementation of the self-monitoring plan will basically result in three outputs:

• Data and information about the facility

• Preparing the environmental register as required by law.

• Reports describing results of the self-monitoring and problems faced during implementation

• Feed back and decision making



101

Quality Control + Quality Assurance

Figure (33) Parameters Affecting SM Reliability

Calibration

• Maintenance

• Reference measurements

• Documentation

• Knowledge of the process

Total Uncertainty

Reliability- Repeatability- Comparability

Measurements & Records

• Data collection - Data handling - Data processing

• Reporting

Sampling

• Determination of volume/ amount

• Sampling - Sample pretreatment - Sample treatment - Sample analysis

• Data processing - Reporting

Data Production


102

11.2.1 Techniques for Summarizing and Illustrating Data It is best practice to record process and environmental information in a detailed archive or database. It can then be related easily to the monitoring results and used to evaluate, compare and manage aspects of process performance such as:

• the rate of release of pollutants compared to production

• the rate of generation of waste compared to production

• the rate of consumption of energy and/or materials compared to production

• the impacts on environmental receptors compared to production or to their sensitivity

• the overall resource efficiency of the process, i.e. production compared to inputs or raw materials and energy, and outputs of pollutants and waste

There are many techniques used in the interpretation of results (e.g. statistical analysis of

the measurement results, reduction of operating conditions to normal conditions when monitoring gaseous emissions).

11.2.2 Environmental Register

Only monitoring data related to compliance will be included in the environmental register. Description of the measuring and/or analytical techniques used should be reported as well as the location of sampling and measuring. EEAA/EPAP prepared a detailed description of the environmental register, based on the requirements of law 4/1994, see Annex B. The competent authorities could request the inspection of the measuring devices to check their operability and the maintenance record for these devices. The procedures for taking samples could also be checked by the inspector. The inspectors check whether the facility has provided information that is relevant and of sufficient quality. To assess compliance, a simple numerical or statistical comparison between the measurements, their uncertainty and the limit value is performed. According to Law 4/1994, compliance self-monitoring data should be recorded and kept for a minimum of 10 years.

11.2.3 Reporting Description of the reporting scheme, its content, recipient and purpose should be included in the self-monitoring plan. A monitoring report is a uniform presentation of data over a fixed period. An annual monitoring report that provides information of the past calendar year is always required. Shorter period reports are required for significant polluters. The conditions of the process and equipment as well as location of monitoring points should be specified. Reporting can be: • Internal to inform management and raise the environmental awareness of the facility personnel. It should

include problems met during the implementation of the SM plan to be used in decision making.

• External for the competent authority. based on the environmental register, establishments are required to report on environmental violations.

11.2.4 Internal Auditing and Conclusions on Results The data obtained must be compared regularly with the objectives written down in the monitoring program to check that they are being met.

11.2.5 Feedback and Decision Making Feedback on the assessment of compliance based on the monitoring results should include all parties involved with the monitoring activities. The participants should make the necessary improvements and corrections to the next monitoring program.

In those parts of the monitoring program where compliance is met, possible reduction in frequency of monitoring can be considered and instead move resources to parts that need more accurate monitoring, e.g. borderline or non-compliance situations.

Feedback should include all parts of the monitoring program, process, product control, maintenance, environmental management and occupational safety. Detailed requirements should be set for the improvements


103

needed and a date fixed for their implementation.

11.2.6 Using Outputs in Public Relations

The monitoring data is refined and distributed to the end users such as national and international reporting, research and statistical purposes, citizens, and the media.

The citizens have the right to present complaints about the health or environmental impacts caused by the operation these complaints are directed to the permitting and supervising authority.

Monitoring data is needed e.g. in national research and statistics, for planning and evaluation purposes, by national group organizations and the media.

Report Name (Times New Roman font 10 bold italics) Page no

Consultant Name Month year 104

Table (10) Egyptian Environmental Legal Requirements for Industrial Wastewater

Parameter

(mg/1 unless

otherwise noted)

Law 4/94:

Discharge

Coastal

Environment

Law 93/62

Discharge to Sewer

System (as modified

by Decree 44/2000)

Law 48/82:

Discharge into :

Underground Reservoir & Nile

Branches/Canals

Nile

(Main Stream)

Drains

Municipal Industrial

BOD (5day,20

deg.)

60 <600 20 30 60 60

COD

100 <1100 30 40 80 100

pH (Grease)

6-9 6-9.5 6-9 6-9 6-9 6-9

Oil & Grease

15 <100 5 5 10 10

Temperature (deg.)

10C>avg. temp of

receiving body <43 35 35 35 35


105

Parameter

(mg/1 unless

otherwise noted)

Law 4/94:

Discharge

Coastal

Environment

Law 93/62

Discharge to Sewer

System (as modified

by Decree 44/2000)

Law 48/82:

Discharge into :


Branches/Canals

Nile

(Main Stream)

Drains


Total Suspended

Solids

60 <800 30 30 50 60

Settable Solids

__ <10 __ 20 ___ ___

Total Dissolved

Solids

2000 __ 800 1200 2000 2000

Chlorine

__ <10 1 1 ___ 10

PO4 5 30 1

1

___ ___

Total phosphorus

25 ___ ___ ___ ___


106

Parameter

(mg/1 unless

otherwise noted)

Law 4/94:

Discharge

Coastal

Environment

Law 93/62

Discharge to Sewer

System (as modified

by Decree 44/2000)

Law 48/82:

Discharge into :


Branches/Canals

Nile

(Main Stream)

Drains


Fluoride 1 <1 0.5 0.5

__

0.5

Cadmium 0.05 0.2 0.01 0.01

Total concentration for theses

metals should not exceed 1 for

all flow streams

Chromium 1 __

__

__

Chromium

Hexavalent

__ 0.5 1 1


107

Parameter

(mg/1 unless

otherwise noted)

Law 4/94:

Discharge

Coastal

Environment

Law 93/62

Discharge to Sewer

System (as modified

by Decree 44/2000)

Law 48/82:

Discharge into :


Branches/Canals

Nile

(Main Stream)

Drains


Copper 1.5 1.5

1

1

Iron 1.5 __ 1 1

Lead 0.5 1 0.05 0.05 __ __

Mercury 0.005 0.2 0.001 0.001

__

__

Nickel 0.1 1 0.1 0.1

__

__

Silver 0.1 0.5 0.05 0.05

__

__

Zinc 5 <10 1 1

__

__


108

Parameter

(mg/1 unless

otherwise noted)

Law 4/94:

Discharge

Coastal

Environment

Law 93/62

Discharge to Sewer

System (as modified

by Decree 44/2000)

Law 48/82:

Discharge into :


Branches/Canals

Nile

(Main Stream)

Drains


Cyanide 0.1 <0.1

__

__

__

0.1

Total heavy metals

__

Total metals should not

exceed 5 mg/l 1 1 1 1



Frequency

/Duration Person Responsible�

Indication Method used�Parameter monitored�

Affected media�

Cause of pollution�

Major Pollution Process�

Water- Based paints Production Line Once/ batch - Out-of-spec. product

(table 21)

- Pollution in work place

- Speed (rpm) meter - Quality control analysis for product

- Mixer speed - Properties of raw

materials (table 19)

Work

environment

Particulates and VOCs emissions

Mixing

- Spills or leaks

- Lower productivity - End-of- pipe effluent characteristics

- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills

Once/ batch - Product quality (table

21)



- Mill speed - Properties of raw materials (table 19)

Work environment


Grinding (Rollers and ball mills)

- Spills or leaks


- level indicator Liquid level in the

ball mills

Wastewater Spills (ball mill)

Table (22)a Operation Control for Production Lines


110

Paint quality - Vernier - Speed meter (rpm) - Flowmeter and thermocouple

- Spacing between

rollers

- Mill speed - Temperature and flow rate of cooling water

Hazardous solid waste

Reject paint


21)



- Mixer speed - Properties of raw materials (table 19)

Work environment

VOCs emissions Finishing (Mixing)

- Spills or leaks


- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills

Once/

batch

- Product flow rate (lower productivity)

Pressure gauge Pressure drop Land Filter sludge Filtration

Once/

batch

- Spills


Mass balance calculation Spills amount Wastewater Paints losses Packaging

Solvent- Based paints Production Line Once/ batch - Out-of-spec. product

(table 21)





Work environment


Mixing


111

- Spills or leaks


- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills


21)




Work environment



- Spills or leaks



ball mills


Paint quality - Vernier - Speed meter (rpm) - Flowmeter and thermocouple

- Spacing between

rollers



Reject paint


21)




Work environment


Once/ batch - Spills or leaks


- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills Finishing (Mixing)


112

Once/

batch



Once/

batch

- Spills


Mass balance calculation Spills amount Wastewater Paints losses Packaging

Printing Inks Production Line Once/ batch - Out-of-spec. product

(table 21)





Work environment


Mixing

- Spills or leaks


- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills


21)




Work environment



- Spills or leaks



ball mills



113

Inks quality - Vernier - Speed meter (rpm) - Flowmeter and thermocouple

- Spacing between

rollers



Reject inks


21)




Work environment




- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills Finishing (Mixing)

Once/

batch



Once/

batch

- Spills


Mass balance calculation Spills amount Wastewater Inks losses Packaging

Varnishes Production Line Once/ batch - Out-of-spec. product

(table 21)





Work environment


Mixing


114

- Spills or leaks


- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills


21)




Work environment




- Level indicator

- Flowmeter

Liquid level in the

mixer

Wastewater Spills

Once/

batch



Once/

batch

- Spills


Mass balance calculation Spills amount Wastewater Varnishes losses Packaging

Alkyd Resin Production Line Once/ batch - Lower productivity

- Product quality (table

21)

- Thermocouple

- Manometer - Clock - Amount of solvent

- Temperature

- Pressure - Time of reaction

- Amount of

solvent

Reaction

completion

Reaction


115

needed for the

removal of

reaction water

Once/ batch - Xylene concentration

in wastewater from gas/

liquid separator

- Higher solvent consumption (lower amount of solvent recovered) - End-of-pipe effluent characteristics

- Analysis

- Weight/ volume measurements

-

Concentration

of xylene in

water/ xylene

mixture

- Amount of make-up solvent used

Wastewater Efficiency of separation

Xylene recovery


116

For All Units Once/ day End-of-pipe effluent

characteristics

Calculations and book

keeping

Amounts Wastewater

contain

hazardous

materials

- Spent caustic

solutions

- Spent solvents

Equipment cleaning and floor washing between batches

Once/ day - Particulates or spills

- Empty containers

contaminated with

significant amounts of

chemicals

Mass balance calculations

Efficiency of

feeding

Land Empty

containers

contaminated

with significant

amounts of

chemicals

Desacking and emptying of chemicals containers

Work

envronment

Feeding of

solid chemicals

Wastewater Feeding of

liquid

chemicals



Table (22)b Operation Control of Utilities Service units Cause of

pollution Affected media

Parameter monitored

Indication Method used Person Responsible

Frequency /Duration

Boilers

Steam Air - Temperature - Pressure level - Degree of saturation - Flow rate

Steam leaks Steam quality

- Thermocouple - Pressure gauge - Flowmeter

On-line

Boiler flue gas Air - Fuel to air ratio - Excess air - Combustion efficiency

Incomplete combustion (CO % in flue gases)

- Flowmeters - Gas analyzer - Calculations

Once a month

Boiler fuel Air - Type - Flow rate - Consumption rate - Sulfur content

SOx % in flue gas - Flowmeter - Inventory - Chemical analysis

Water treatment chemicals

Water - Type - Consumption rate

Losses Inventory Once a month

Lube oils Water - Type - Consumption rate

Losses Inventory

Boiler Feed Water Water - Flow rate - Chemical quality (TDS, oxygen content)

- Blow-down and carry over - Scale formation

- Flowmeter - Chemical analysis and conductivity meter

Once a day

Softener back wash Water Flow rate Zeolite regeneration efficiency

Flowmeter on wash water

Boiler blow-down Water Flow rate Feed water quality Flowmeter

Dow-therm Oil Heater

Heater flue gas Air Fuel to air ratio Incomplete combustion (CO % in flue gases)

Gas analyzer Every 6 months

heater fuel (mazot/ solar)

Air Sulfur content SOx in flue gas Gas analyzer

Cooling Towers

Input water quality Water Temperature, dissolved and suspended solid

- Scale formation - Higher temperature (low efficiency)

- Thermometer - Analysis

Twice a month


118

Output water Temperature Higher temperature (low efficiency)

Thermometer

Blow-down Flow rate Scale formation (low efficiency)

- Flow rate measurement (flowmeter) - Calculation and mass balance

Wastewater Treatment Plant

- Input flow rate higher than design value - Pollutants concentration higher than design value

Receiving water body

- Input flow rate and characteristics - Output flow rate and characteristics

End-of-pipe effluent characteristics (low treatment efficiency)

Analysis and measurements

Once a month

Solvent Recovery Unit

Efficiency of separation

Land Sludge composition

Sludge characteristics (containing higher amounts of solvents)

Analysis and measurements

Once a week



Table (24) Compliance Monitoring for Air pollution, Workplace, and Wastewater Major pollution sources

Impact Parameter monitored

Method used Source type Operating Person responsible

Poin

t

Diffu

se

Normal Exceptional

Boilers Flue gases Air - Sulfur oxides

- Nitrogen oxides

- Carbon oxides - Particulate

matters (ash)

- Gas analyzer - Dust meter

Fans Work environment

Noise Noise meter

Boiler house Work environment

Heat stress (temp. and humidity)

Thermometer and hygrometer

Dow-therm Oil Heater

Flue gases Air - Sulfur oxides - Nitrogen

oxides - Carbon oxides

- Particulate matters (ash)

Gas analyzer� - Dust meter

Paints, Inks, and Varnishes Production lines

Mixing Work environment

VOCs, Particulates (PM10)

- Ambient air analyzer - Noise meter

Grinding VOCs, noise

Filtration VOCs


120

Filling and packaging

VOCs, noise

Alkyd Resin Production Line

Reaction Work Environment

- VOCs - Heat stress

- Ambient air analyzer - Thermometer and hygrometer

Solvent/ water separation

Cooling and dilution

Filtration

End-of-pipe

Wastewater effluent

Receiving water body

BOD, COD, O&G, TDS, TSS, pH, color, heavy metals (iron, copper, chromium, cadmium, lead, zinc, nickel, …).

- Chemical analysis - Measurements: BOD tester COD tester TSS tester (Hoffman funnel) Atomic absorption (spectrophotometer)



Table (25) Compliance Monitoring Plan for Solid Wastes Process Unit

Type of waste Tons/year Tons /ton production

Segregation from hazardous waste

Internal Utilization Disposal

Reused Recovered Packaging

Plastic, paper, metals

Workshops

Scrap

Garage

Scrap


122

Table (26) Compliance Monitoring Plan for Hazardous Wastes Management

Process Unit

Type of waste Tons/year

Tons /ton production

Waste segregation

Waste minimization Handling Storage On-site treatment

Disposal Source reduction

Reuse/ Recovery

All production

lines

Empty containers contaminated with chemicals

Filters sludge containing paints and solvents

Spent filter cloths, contaminated with paints (resins, pigments, fillers,…) and containing heavy metals, solvents

Spent cleaning solvents

Out-dated, rejected, and off-spec. products

Solvent recovery unit

Sludge containing paints and solvents

Wastewater treatment unit

Sludge containing heavy metals and hydrocarbons



List of References

1) Saarinen K., Jouttijarvi T. and Forsius K. (1998) Monitoring and Control Practices of Emissions in Pulp and Paper Industry in Finland. The Finish Environment 220. 38 p.

2) Saarinen K. (1999) Data Production Chain in Monitoring of Emissions. The Finish Environment 326. 52 p.

3) �� .

4) � �� /��

5) Shreve’s, Chemical Process Industries by George T. Austin, fifth edition. Published by McGraw- Hill Book.

6) Guide to Pollution Prevention, The Paints Manufacturing Industry, EPA (June 1990).

Annex J

List of interviewed Organizations

Organization Address Contacted Person

A- Private Sector

EAGLE Chemicals 72 روآ�� –ا��ور ا��دس - ��رع ا��ز Eng. Yasser Bishay – Eng. John Bishay;

Managing Directors

Egyptian American Paint & Coatings (EAP)

، $�)�� ا�'��& $% ر$#�ن)1- ب(�� ا�� ا�� Mr. Ahmed Abd El-Ghany – General

Manager & Mr. Hazem Meligy

KAPCI Coatings ا��2 ا��2 �1+ب ا�&*+0 ا��+ض ا��.- *- - ,+ر*'��

6

Eng. Lotfy El-Badrawy, research & Quality Assurance General Manager –

Eng. Waleed Helmy, Business Development Manager

Modern Chemical Industries (MCI)

ا��ت ا�.��و)� ا��)�4

ا��ه&ة - :9ح *��7 –��رات ا�'6+ر 12 Eng. Saleh Ali Saleh, CEO

Rover �� رو=& ا�

$��A ا�&و@� –��رع $?<�ر 16

Mr. Mohamed Hassan - Financial Department*

German Lebanese Co. (GLC)

��ا�E&آ� ا��C��D ا�6B� ��C��6B+)�ت و ا�.��و)�ت ا�� ا�ا�'6+ر - 54��رع , اDو��

Mr. Abd El-Fatah Ibrahim El-Hoot; Head of the Company

ـ ا�� ا�� ا��د*� ـ $�)�� ,�ر �J52'� ر�Iان �6B+)�ت Eng. Maged Ibrahim Mostafa Ali – Mr.

Saied Abd-El-Latif

SIPES

Quality Paints ا��ه&ة - $�& ا��)�ة - ��رع ا�4+رة 104 Mr. Mahmoud Bdier, General Manager

��M+ت ا��Cا��ه� NC��&آ� $)ده��Cت �C+��Cل(

أ$�م $�� J8/9'� –ا�� ا�� ا��C�4 –$�)�� ا�'6+ر ر ,+ا,� ا�&*+م ,U�6Bا��0 ا��)�� ,�+ا

Ms. Janet

ا��+�� ا��و�� Bه��Cت ا��)�4 )$��و(

$�)�� ,&ج ا�'&ب ا��)�ة –ا�� ا�� ا�B,33 ��C�4+ك Eng. Omar Ghaly – Exports Manager

and Deputy chairman

�&آ� ا�E&ق ��B+اد ا�.��و)� وا�6+)�ت

�6&ا ا�?�� -�� ا�� ا� - 1ر7J - ��رع ��BZ ز)% ا��)% �� ا,&اه�7 ,�� - آ&*<�ل ��]+ر 135��رع (��$(

Eng- Sherif El-Ghaysh - General Manager / Mr. Hazem Ramadan -

Adminstrative manager

):]�\(�&آ� ا)&و,�ك ,�+ار $��A3 - �(��B� �M+J N -ا�� ا�� ا��4��4

94B� �.و�&آ� ا�� ]B� ا�'��& $% ر$#�ن -�1ت وا�Mr. Mohamed Shafik

�&آ� *.�[ ��Bه��Cت وا�.��و)�ت0��b -اa& ��رع ,`�_ ��B - 4ر7J -��رع EC N$�1^ت

c�Cب $% ,&ج ا�<��رة - ا��ور ا��دس - ,&ج د��ء - ا�.+ر&��, ا�e��$f -ا�?�ر��1 وEC N$�1^ت

Eng. Badr Sidnawy - Chairman (Tel: 0227355838 - 1)

PACHIN Pachin Information is being filled by Eng. Mohey Abdel-Razic and Eng Ahmed Maher, Experts from Pachin.

�(&�A�6C –�&آ� ا�.&,+�Cت ا�� U>B=)eBbت و�C+,&آ(

3 %��M�[رع ا��– ��B��*gا��)�ة –$��ان ا &�$ Mr. Ramez Mounir – Export Department

Manager (Tel: 022634995) "Contact Person: Ms. Amira"

ا�E&آ� ا��&)� ا��+)�&)� ��ت ا�.��و)�B�

A7 - ��رع ا��J106ر - �Jا��9ء - ا�� h[C �� Ms. Nashwa (Technical Office

secretary) - Eng. Amal Ezzat - Technical office manager) - Tel: 0233363171/2

%b+( ا��`��س N,ن ا��ور ا�&ا+bر)�ا $+ل $��آ% ��&ا+B= Mr. Ashraf Amin - Exports and Imports

Manager - Mob: 0122202803

ا��'�دى ـ ا��ه&ة 105ش 50 �&آ� =��=�A ا)�6_ Mr. Said Ayoub Zaki –

Organization Address Contacted Person - l� &(�$0225253724+ن اk$�اد وا�'��Bت

0122145184

)�4 وا�.��و)�ت �&آ� ا��ه��Cت ا��)MCC(

�'�J ، و��Dا ��,�+ار �&آ� آ�ر$% 193ا�� ا�أآ<+,& B�6+ر��Jت ،

Dr Abd El-Aty Taha, Tel: 0238341154

�&آ� ا��ل �6B+)�ت وا��ت ا�.��و)�

�'�J220 ��(�$ ، و��Dا ��أآ<+,& 6ا�� ا� Mr. Adel Badry – Exports Manager

1060409010

B- Public Sector & Government

Egyptian Organization for Standardization and Quality (E.O.S.), Ministry of Trade

and Industry (MTI)

ا�`��l ا��&)� ا�'�$� ��B+ا:]�ت وا��+دة

ا��ه&ة - اD$�&)� –��رع �bر)[ ا��ر,�% 16

Eng. Essam Shams El-Din, Head of Central Department for Standardization,

E.O.S., MTI.

Egyptian Petrochemicals Holding Co.

ا�E&آ� ا��&)� ا��,#� �6B<&وآ��و)�ت

18 &�C ��(�$ ،�*ا��د �� - ��رع ��6 ا�&�J�: %�Z ا�� ا��ه&ة

Eng. Mohamed Sami Abd El-Hady, Vice Chairman for Technology & business

Development

Egyptian Environmental Affairs Agency, Ministry of

State for Environmental Affairs

�l�6ن ا�+l� 1`�ز– ��و�Zة - $E&وع ا�<�.7 =� ا�<B+ث ا�� ا�

�& BZ+ان ا�fرا�� 30$ h(&M– ه&ة - ا��'�دي��ا�

Eng. Mamdouh Hegazy & Eng. Mohamed Issa, Environmental

Specialists

Egyptian Customs, Ministry of Finance

�(&�وزارة ا�� –$��B ا��رك ا��

U��$7 , ا,&اج وزارة ا��, ا$<�اد ��رع رJا��ور 3,&ج رo��4ا�

Mr. Magdy Sief El Nasr, Department Director at Commissioner’s Office and

Mr. Ali Galal, Egyptian Customs, Ministry of Finance

General Organization for Export and Import Control

(GOEIC)

$��ر ا��ه&ة – ا�`��l ا�'�$� ��B� �,�J&B ا��درات وا�+ارداتJ&)� ا�Np�#6 - ا��و��

Mr. Mohamed Shafeek, Head of the Central Directorate of Chairman’s

Office Affairs

Industrial Development Authority, Ministry of Trade

and Industry

��وزارة ا�<��رة وا�� –ا�`��l ا�'�$� �B<�� ا�

6 �Iأ A�Ba �1ردن *�<� –��رع

Eng. Hisham El-Harony, Assistant to Chairman; Energy & Industry Affairs

General Organization for Export and Import Control

(GOEIC) - Laboratories Alexandria

Eng. Samir Abdel-Meseeh Henady (012) 276 5958

Chemical and Fertilizers Exports Council

&�C ��(�$ ،ارض ا��'�رض Mrs. Manar, Executive Director

Mob: 0188601443 Tel: 24033985