Plastic Industry Pakistan

PLASTIC INDUSTRY

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Presented by: Sana Zunnoon Wajeeh Fatima

AGENDA: 

Introduction.

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History.

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Types of plastic.

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Plastic industry at a glance.

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Steps of recycling.

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Environmental hazards.

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Government policies.

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Problems.

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Suggestions.

Introduction: 

Now in this era a world without plastic products is unimaginable.

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

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

History: 

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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.

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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.

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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..

Raw Materials: 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

Local Production: 

PVC tones



Polystyrene tones

83,600

16,394

M

M

Plastic products producing from raw material. Types of plastics

End use industries

PVC

Pipes, artificial leather, cable coating, packing, footwear Film for packaging, bottles and pipes. Woven bags, auto parts, packaging, pipes, medical appliance.

PE PP PS

House & sanitary ware, auto parts, electrical parts.

PS-Polystyrene:  

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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: 

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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

2002

83,600

16,407

13,144

30,000

5,068 13,510

2003* 2004

100,000

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 SECTOR AT A GLANCE:

Description

Up-stream Downstream No of plants 7 700(org)

Total 6007Plants

5300(unorg 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 Downstream

Export 24.5% Growth Contribution 0.114% to total export Contribution 0.129 to GDP% Employment in800 sector Skilled 1:2 :unskilled

Total

35%

59.5

0.163%

0.277

1.558

1.687

600,000

600,800

1:3

Description Foreign investment Technology

Up-stream Downstream 49% Hi tech

High/ inter/

Source of machinery

Japan,

low Japan,

Norway,

Korea,

UK,USA,

Italy,

Taiwan,

Germany,

Switzerland Hong Kong

Total 49%

Consumption of plastic: Description

Consumption (M.T)

Total import

611,787

Local production

100,000

Total available

711,787

City Wise Plastic Units: 40 35 30 25 20

Units%

15 10 5 0 Lhr

Gjr

Mlt

Gdn

Others

Import of plastic Resins: (M Tons)

YEAR

PE

1999-00

PS

PVC

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

3,192

5,068

2002-03* 96,576

PP

73,223

Imports of plastics material: YEAR

QUANTITY

VALUE

2001-02

(M tons) 426,576

(M Rs) 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

VALUE

1996-97

(M.Tons) 4,873

(M. Rs) 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.

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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.

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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: 

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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.

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

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

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There are no export ware houses.

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Lack of financial assistance.

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

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Intellectual property and copyrights laws are not strictly enforced.

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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.

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

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Holding national and international exhibition.

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Creation on plastic desk in EPB- Export Promotion Bureau .

Government policies: 

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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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