PLASTIC INDUSTRY

Presented by: Sana Zunnoon Wajeeh Fatima

AGENDA:

Introduction.

History.

Types of plastic.

Plastic industry at a glance.

Steps of recycling.

Environmental hazards.

Government policies.

Problems.

Suggestions.

Introduction: Now in this era a world without

plastic products is unimaginable.

Its is used in manufacturing automobiles, television, refrigerators, electrical goods, furniture, house-ware, defense products, etc.

This industry is growing at an average annual growth of 15%.

History:

In 1953, the First plastics and polymer research center was created with the establishment of Pakistan Council of Scientific and Industrial Research (PCSIR) in Karachi.

1963,Exports Promotion Bureau was created.

1966,Arkoy Chemical Industries becomes the first unit in Pakistan to manufacture PVC pipes.

In 1971,the Government began to collect statistics of imports of plastic products.

In 1971,the products manufactured by

nylon become widely popular.

In 1980,Pakistan Plastics Manufacturers Association was formed, and was registered with the Ministry of Commerce in the month of May.

In 1982,Poly Industries sets up a cast acrylic and polystyrene sheet plant at Hub, Lasbella, some 35 km west of Karachi.

In 1988,Plastics Technology Center (PTC) was established by FCCCL (The Federal Chemicals & Ceramics Cooperation Limited), in Karachi. With the inauguration of the center in October, polymer sciences education begins in Pakistan, which later on provides highly qualified and skilled manpower to the plastics industry.

Pakistan produce following types of plastics :

Thermoplastic.

Thermosetting plastic.

Thermoplastics:

Which are capable of being repeatedly soften by heat, and harden by cooling.

Among the thermoplastic category ,bulk consumption is of Polyethylene (PE), Poly vinyl chloride (PVC) ,Poly Propylene (PP) ,Polystyrene (PS).

Thermosetting plastic:

These are plastic, which ,when cured change in to a substantially infusible or in soluble products, these are generally produce by addition polymerization. it include Phenol formaldehyde ,Ureaform aldehyde , Polyglycol ,etc..

product consumption 2001-2002

estimated demand 2004-05

PE 157.50 m.tons

235.m.tons

PP 144.m.tons 150.m.tons

PVC 78.m.tons 95.m.tons

PS 23.40.m.tons

35.m.tons

Total 402.9 .m.tons

515.m.tons

Raw Materials:

PVC 83,600 M tones

Polystyrene 16,394 M tones

Local Production:

Plastic products producing from raw material.

Types of plastics End use industries

PVC Pipes, artificial leather, cable coating, packing, footwear

PE Film for packaging, bottles and pipes.

PP Woven bags, auto parts, packaging, pipes, medical appliance.

PS House & sanitary ware, auto parts, electrical parts.

PS-Polystyrene: Pak petrochemical industries are

producing PS from imported plastic resin.

The production of PS began in 1987 ,and its production capacity was 5,000 mtpy and current capacity is 27,000 mtpy

There are three grade of PS produced. The current demand is 35 mtpy well in

future expansion would be easy, as the plants are high tech.

Production import and consumption of polystyrene (PS): (million tons)

year Production

Import Consumption

1999-00 1,017 14,452 15,469

2000-01 11,627 18,938 30,524

2001-02 16,394 7,756 23,398

2004-05 36,000 N-A 23,400

PVC-poly vinyl chloride:

It has production capacity of 100,000 mtpy with the cost of 4 billion and is the leading plant.

It has the capacity to produce 5 grades of PVC.

Engro Asahi Polymer & Chemicals started its production in December 1999 at port Qasim in Karachi.

PVC production ,export and import: (Million tons) .

Year Production

Export Import

2000 65,000 25,512 34,602

2001 68,600 12,900 19,268

20022003*

83,600 16,407 13,1445,068

2004 100,000 30,000 13,510

Polypropylene-PP:

PP is used in the form of woven bags, households articles furniture and packaging film ,there is no

plant producing PP at present.

Polyethylene-PE:

It is a leading thermoplastic material established its usage in packaging films, household articles, automotive and industrial parts. There is no plant producing PE in Pakistan.

PAKISTAN PLASTIC

SECTORAT

A GLANCE:

Description

Up-stream

Down-stream

Total

No of plants

7 700(org)5300(unorg

6007Plants

T.capacity 173,500 457,000 630500

Production

75,000 430,000 505000

Investment

Rs5.6 B Rs10 B 15.6 B

Capacity Utilization

43.2% 95.4% 138.6%

Description

Up-stream

Down-stream

Total

Export Growth

24.5% 35% 59.5

Contribution to total export

0.114% 0.163% 0.277

Contribution to GDP%

0.129 1.558 1.687

Employment in sector

800 600,000 600,800

Skilled :unskilled

1:2 1:3

Description

Up-stream

Down-stream

Total

Foreign investment

49% - 49%

Technology

Hi tech High/inter/low

Source of machinery

Japan,Norway,UK,USA,Taiwan,Switzerland

Japan,Korea,Italy,Germany,Hong Kong

Consumption of plastic:

Description Consumption (M.T)

Total import 611,787

Local production 100,000

Total available 711,787

City Wise Plastic Units:

0

5

10

15

20

25

30

35

40

Lhr Gjr Mlt Gdn Others

Units%

Import of plastic Resins: (M Tons)

YEAR PE PP PS PVC

1999-00 122,900

102,500 14,000 34,602

2000-01 154,900

109,500 10,700 19,268

2001-02 157,472

144,051 7,755 13,144

2002-03*

96,576 73,223 3,192 5,068

Imports of plastics material:YEAR QUANTITY

(M tons)VALUE(M Rs)

2001-02 426,576 15,571

2002-03 391,733 17,238

2003-04 605,375 31,635

2004-05 683,026 47,061

Exports:

PVC: Pakistan has become a plastic material exporting country. In the year 2000, export of PVC has been 12,000 m.tons worth $8 million and the units was expecting to increase exports to 30,000 m.tons. The product exported to the countries: Sir Lanka, Bangladesh, U.A.E, China, Hong Kong and Nigeria.

PS: Polystyrene in being produced by Pak petrochemical industry and 50% of the production in being exported to Bangladesh, Sri Lanka, and Nepal.

Exports of finished goods:

YEAR QUANTITY(M.Tons)

VALUE(M. Rs)

1996-97 4,873 238

1997-98 12,325 600

1998-99 6,780 443

1999-00 11,035 686

2003-04 N.A 33.4

2004-05 N.A 111.5

Duties and taxes:

Plastic sector is one of the major contributor in terms of amount of duty and taxes paid to government.

Duties and taxes:

Duties and taxes Percentage %

Custom duty 5%

Polyethylene 5%

Sales tax 15%

Income tax on imports

1%

Recycling: The recycling of plastic scrap has

developed into an industry in Pakistan. There are about 400 known units , which are engaged in recycling of plastic scraps. Well the plastic waste or scrap is not being imported .

Steps of recycling: Step 1: Collection of scraps: Sources for collection are, Household waste. Industrial plastic waste. Plastic cans, container, etc. Hospital waste.

Step 2 : Process stage: Collection of scraps. Sorting. Cutting to reasonable sizes. Washing. Melting to form lumps. Passing through cutter to have

lumps into pieces.

Step 3 :Application: Household. Sandals. Washers and seals of water

pipes.

Environmental hazards: Plastic bags are an

environmental hazard and their production and

use need to be disallowed in the country. Used plastic bags are found in abundance in the streets and are responsible for clogging drains and sewerage lines.

In the rural areas, these bags decrease the productivity of the arable land because they do not rot or turn into compost. The most dangerous are the black bags, made of recycled plastic which increases their toxic content.

plastic's non-biodegradability poses serious environmental and health problems. In addition, the additives used in processing plastics results in the presence of substances that are a serious health hazard.

Burning the waste releases dioxin - a class of 75 chemicals - which is carcinogenic and causes birth defects and other serious ailments like cancer.

The popular plastic bottles are actually unsuitable for storing drinking water because of the presence in them of cadmium, mercury and lead, which are mainly used to impart colors to them.

Problems: Sales tax for the organized sector in

15% whereas the unregistered buyers can get plastic by paying 16.5% sales tax.

Export promotion bureau needs to enhance its cooperation with the manufacturers in international exhibitions.

Lack of information on potential markets in a barrier to export growth.

Incentive for deletion in limited to a few components.

Production and expensive machine are been affected by the interrupted power supply and damaging machines.

PSI is not playing its due role for the better quality control.

There are no export ware houses.

Lack of financial assistance.

Tariff on styrene monomer is 10% hence it should be reduced.

Intellectual property and copyrights laws are not strictly enforced.

High impact PS (which is imported) taxes has reduce from 25% to 10% which is effecting the local industry.

Suggestions:

There is a great potential for export of plastic goods so, they have to establish plastic website providing information about not only exports but also about imports,international associations,and plastic processors in Pakistan.

There are no export warehouses in target market for example south African market..

Holding national and international exhibition.

Creation on plastic desk in EPB- Export Promotion Bureau .

Government policies:

The Rules banned the use of plastic carry bags with a thickness less than 20 microns.

The government has reduce the import duties in last budget due to which there had been increase in imports .

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