K 2013 The Turning Point for Global Plastics Sector

K 2013 held at Dusseldorf, Germany from October 16th to 23rd, was the largest ever, covering net area of 1,68,000 sq. mtrs, with 3218 exhibitors from 60 countries in 19 halls. Total number of visitors was more than K 2010. Almost 8000 visitors were from India alone. India's exhibition participation was excellent- with 145 exhibitors and over 5200 sq. mtr area ranked 3rd after China. Lohia and Reliance lead the glitter, with vibrant young Indian exhibitors putting their best and pushing exports a scenario to relish. Prannoy Sharma Director Government of India Dept. of Chemical & Petrochemicals, GIDC Chairman, Mr. Swain, Mr. M.P. Taparia, MD Supreme attended. With the AIPMA delegation, 30 delegates were there from UNIDO & CIPET, members of National Programme for developing plastics manufacturing industry in India. Three factory visits were organized for them in Germany. Networking dinner of Reliance, SPI for launch of NPE 2015, Lowell reception, exhibition gala night and CIPAD meets were excellent. Overview of K 2013 The environment a K 2013 reflected growth revival for plastic industry of Europe, USA. As usual, technology, upgrading machine speed, efficiency per second output with automation was the basic approach. All machinery manufacturers were happy and satisfied with quality of visitors and doing business with including Indians. Bio plastics going green - was the buzz word. CIPAD - Council of International Plastic Association Directors Meet As CIPAD Director Asia, I had the opportunity to interact in half day review meeting on status of global plastic industry. It was attended by 12 countries. Their review country report update : Switzerland: Their Machinery industry going strong, better than last year, and converting industry increasing imports of automation. Germany: Extremely good growth in exports by of German Machinery i.e. +6%. India as buyer amongst top ten. Leading importers are China, USA, Russia. Converting Industry performing better. This year they are able to recover waste to the tune of 99%, nothing to Ocean and landfill, a great achievement in the world, a German grit with determination & technology at work. Germany is doing miracle in waste management. How German system of waste disposal works Germany has a selective system of waste disposal. The local authorities are in charge of waste management. Responsibility of waste segregation at source has been fixed on each and every household and guidelines are being strictly followed. At many malls, if customer brings glass and plastic bottles, they are rewarded with points which can be redeemed against normal purchase. Processors have been instructed not to use "difficult to process" packaging material. All polymers used in packaging, have been levied "recycling cess." Every household in general has 4 bins: a black, a green, a blue and a yellow one. Bins have been standardized. The waste has to be sorted according to the material it consists of and is to be disposed of as follows: Black Bin: Domestic waste- All non recyclable waste: leftover food, dirt, vacuum cleaner bags, cigarette butts, soiled packaging, broken crockery, light bulbs, nappies, ashes (cooled). You should not add: Recyclable waste, waste requiring special disposal, bulky waste , organic waste, small electrical appliances. Green Bin: Organic Waste: potato, fruit or vegetable peels and other fruits or vegetable remnants (raw), tea filters, egg shells, leaves, lawn and bush cuttings. You should not add: Leftovers, meat and other food, ashes, dirt, plastic bags, packing and packaging material, degradable starch bags. Blue Bin: Waste Paper: news paper, magazines, card board packaging material, leaflets, paper bags, clean paper napkins etc. You should not add: Plastic bags, plastic sheeting, adhesive strips, composite packaging and packaging material, photographic paper, carbon paper. Yellow Bin: Lightweight packaging: Plastic material, sheet, cans, aluminum packaging, beverage pasted board, containers, screw caps etc. You should not add: Packaging with content, heavily soiled containers, nappies and other domestic waste, glass and paper packaging. Glass: (non returnable bottles, food containers such as jam jars) has to be disposed of separately, in all neighborhood one can find glass containers. The glass has to be sorted according to colour ( brown, green white glass) Bulky waste: All household furnishings, which are too bulky for disposal in waste bins such as furniture, lamps, cupboards/ wardrobes, shelves, tables and chairs- shall be street collected once in a quarter. You should not add: vehicle parts, old clothes, building waste, domestic waste, electrical appliances, waste requiring special disposal, cartons, packaging. Waste requiring special disposal: Large electrical appliances such as fridge, TV, computers, dishwashers etc. are collected free. Small electrical appliances such as toasters, irons, tea-coffee machines, portable radios, hair dryers etc. to be put in Red Bins kept at prominent places such as town hall or railway station. Paint, lacquer, solvents, fluorescent and energy saving lamps are to be delivered to waste recycling collection point or plant. Apart from this all the citizens are expected to keep footpath in front of their house free from snow during winter. All the citizens are cooperating with the authorities as penalties are very high in case of default. Now people are fighting to get waste in Germany, as incentives are inbuilt. Italy : Machinery industry is little on growth path, may be by 1% improving day by day. Processing industry is bad as of Italy growth is negative. Canada : Energy from the waste is the area they are improving. Processing industry is on growth path. Spain: Processing industry improving little but still will take time to recover. Exports are down by 9%. USA : Very Buoyant. Processing industry is doing extremely well. Automobile is leading the growth explosion. Breaking News from USA By 2015 in USA the plastic processing cost will be cheaper than China. SPI has drawn out plans. Stratery & Reasons : China labour cost going up by 2% every year. China YUAN - RMB is strong continuously. In USA 80% Raw Material is gas based, so polymer is cheaper. USA - Already have maximum automation in all factories. So it will be advantageous to USA in competing China form cheap labour point of view. By 2015, USA will become more competitive in plastic products by manufacturing in USA than in China. Reversal of investment back to USA, which they have planned and strategized, it will happen. United Kingdom - Economy is recovering. This year there will be growth of 1.4%. Next year in 2014 they expect 2.2%. Automobile industry is growing after many years, housing up by 6.1% that too after long time. So they are upbeat. Argentina : Improving processing industry. Positive growth - 5 to 6%. The Converting industry is growing at the rate of 7-10% but better than last year. Turkey : 3.7% growth, converting industry on growth path. Machinery industry hit by China machinery imports. India : Last year growth was 14%. This year high cost of raw material and economic slowdown, growth will be less, may be 10 to 12%. Per capita consumption is 8 kgs, polymer produced is 8 mln tons, Imports 2 mln Tons, Exports 1 mln ton. Additional Polymer Capacity by 2015-16 will be RIL - 1.1 Mln + GAIL - 1.4 Mln + OPAL - 1.2 Mln = 3.7 mln tons. Recycling : India is reprocessing 4 mln tpar giving employment to nearly 1 mln people. Plastic Machinery : Manufacturing Base small as on today not in healthy situation. Exports : Plastic process goods is growing and image of "made in India" is good. Last year India's export of finished goods was US$ 2.40 Billion & Raw Material export was US$ 4.60 Billion. Totally, US$ 7.00 Billion exports, growing at the rate of 14%. The Global Plastic Industry is more or less turned to GROWTH path. India also will be on growth path after general elections and then economy will stabilize. (Author: Mr Arvind Mehta, CMD, Welset Plast Extrusions Pvt Ltd)