India, Malaysia Plastics Industry Exhibition

The Indian market looks forward to promoting the world's third largest consumer of plastics The financial crisis swept the world two years ago, but the impact on India is not significant. In 2009, the Indian plastics industry did suffer a certain degree of impact, especially in important consumer areas such as the automotive industry. Demand was once depressed. However, as the economic situation improves, the plastics industry will grow strongly and the optimism in the industry will also increase.
According to the Plastics Foundation, India's leading plastics association, the plastics production in India will double by 2015, reaching an annual output of 15 million tons from an annual output of 7.5 million tons. The conference also boldly proposed that India will soon become the world's third largest consumer of plastics.
Actively pushing up plastic consumption At present, India’s plastic consumption ranks eighth in the world, but it is worth noting that the per capita polymer consumption is only 5-6 kg, far below the international average of 27 kg and far below. China's average consumption of 17 kilograms has huge potential for development. According to the prediction of the All India Plastics Manufacturers Association, by 2012, per capita consumption of plastics in India will rise to 12 kg. AIPMA had expected to double consumption in 2010, but due to the financial crisis, polymer demand was sluggish. This target was postponed by 2 years. During K2010, Indian Plastics Foundation Secretary S. Ramanathan said in an interview with “CPRJ China Plastics & Rubber” reporter: “The increase in the demand for household appliances and consumer goods has boosted the demand for domestic plastics in India. One of the important growth industries is Packaging industry, especially food and consumer packaging with shorter shelf life."
India's packaging industry is still in an early stage of development and its potential is huge. Moreover, many consumer products manufactured in India are still sold in very simple packages. It is worth noting that Indian polymers are mostly processed by extrusion and rarely use injection molding or blow molding. Plastics are mainly used in soft non-elastic packaging, construction, household products, appliances and cables.
According to the Indian Plastics Foundation, the Indian plastics industry is more dispersed. About 3/4 of the 55,000 processing units are small and medium-sized companies, and their production accounts for 25% of the total output. About 2,000 (of which 80% are small companies) produce textile fibers. The largest companies include VIPIndustries, plastics manufacturing companies Nikamald Industries and Supreme Industries. The plastics industry is mainly concentrated in Gujarat and Maharashtra on the western coast of India, which is close to the raw material suppliers.
The booming automotive industry drives the growth of the polypropylene market Indian plastics industry experts said that the steady growth of the passenger car industry will promote the growth of plastic consumption. According to Frost & Sullivan, a market research organization, the growth of the Indian passenger car industry has directly boosted the consumption of polypropylene (PP) compounds.
The passenger bus market in India has grown from 200,000 units in 2001 to 2 million units in 2009, with an average annual growth rate of 13.5%. With the mass production of new low-cost cars manufactured by India's Tata and Bajaj companies, the industry is expected to continue its rapid growth. In fact, many experts believe that India will become the export center for small cars. For example, Tata has been exporting small cars since 2005. Hyundai Motor Company and Nissan also export small cars made in India to many importing countries. However, the use of PP in these Indian cars is still low compared to international consumption. However, with the arrival of international automakers such as Volkswagen, India’s consumption will increase dramatically from about 35 kg today to 55 kg.
The rise in crude oil prices is a challenge for the industry. The price of PP is directly related to the price of crude oil. If the price of PP keeps rising, its cost advantage will be lost. This will prompt the automotive industry or other industries to find more economical materials for the manufacture of auto parts. The volatility of crude oil prices is one of the most concerned issues for auto OEMs. The 2008 financial crisis proved this. In 2010, the price of crude oil changed as a roller coaster, rising from 74 US dollars per barrel of crude oil in January to 85 dollars in April. It then fell to 78 dollars in June and began to rise again in August.
As we all know, some big auto companies such as Volkswagen, General Motors and BMW are using some advanced PPs to meet the stringent safety and environmental requirements of the company. Although these requirements are not currently entirely mandatory, in India, this is likely to become a mandatory requirement in the future. That is, adoption of advanced PP will become a mandatory requirement for manufacturers. This may further increase the cost of PP used in Indian buses in the future.
The Indian Government's Substantial Support for the Polymer Industry The Indian government has provided practical support and benefits for the industry by encouraging the plastics industry to develop new technologies. The Planning Commission of India has approved the establishment of the country’s first Advanced Plastics Processing Technology Center (APPTC), which will be established along the coast of Orissa, India.
According to Indian officials, the authoritative organization CIPET of India will supervise the project according to the instructions of the Ministry of Chemicals and Petrochemicals of the Indian government. About 70% of Orissa’s plastics industry company is located in and around Belasore, which is why the Indian government decided to set up a technology center in the coastal area. In the plan, the government of Orissa agreed to share 50% of the cost and provide land for the construction of the APPTC.
With the deepening of India’s economic globalization, India is also eager to develop export markets while developing the domestic market. According to calculations by the Indian government, more than 100 plastic processing plants and "plastic parks" will be built here in the next few years. Srikant Jena, Minister of Chemicals and Chemical Fertilizers, recently stated that the technology center will meet the increasing demand for technical personnel in the plastics industry. In fact, APPTC will supplement the shortage of highly-skilled personnel in eastern parts of Orissa by implementing various time-long plastics processing technology training programs.
Another attractive point is that it is easy to obtain the raw materials needed by the plastics industry in the Balasore area so as to ensure sustainable development. At the same time, in the neighboring port Paradeep, a petrochemical complex is also under construction and developed by the Indian oil company.
India's consumption-driven economic growth also has a catalytic effect on the domestic plastics equipment industry. For example, Rajoo Engineers, which manufactures machinery for processing consumer goods such as daily necessities, benefits from strong consumer spending growth. RajooEngineers president Sunil Jain (chairman of the All India Plastics Manufacturers Association's Mechanical, Mould and Tooling Committee) has been urging Indian industry to vigorously develop the export market because the financial crisis has caused major damage to major competitors in the United States, Europe, Japan and South Korea.
Like other plastic-related products, Indian machines and dies have a competitive advantage because they are cheap, although many critics say that these products are not as advanced as similar products in Western countries. However, many believe that this is a good time for India to promote its products in the international market, especially in Africa, Latin America and the Middle East. On the other hand, the increase in Indian polymer consumption will also be accompanied by an increase in the demand for applicable machinery and raw materials, semi-finished products and finished products. Indian experts said that from 2009 to 2011, about 30,000 sets of new plastic processing equipment will be needed, and an estimated investment of 9.5 billion U.S. dollars will be required.
Foreign suppliers of various plastics machinery are also benefiting from the strong growth of India's plastics industry. Bernd Steinruecke, president of the Indian-German chamber of commerce in Mumbai, told the journal that India is a "promising" market for foreign machinery suppliers. In an interview with his office in Mumbai, he said: “The export of plastic machinery to India is in good condition. For example, the export volume of machinery in Germany has increased significantly. Compared with the equipment in low-cost suppliers, German machinery is stronger and performs better. The market is growing, and demand for plastics applications related to other industrial industries such as automobiles, aviation, and telecommunications will also increase, and the demand for plastic machinery will be even greater."
Malaysia's Plastics Industry Plan At Malaysia's K2010, Malaysian exhibitors expressed confidence in the future development when they talked about the Malaysian Plastics Manufacturers Association (MPMA) plans for the next 10 years. According to the plan, the Malaysian plastics industry will become an important member of the international market in the next 10 years.
The decline in 2010 has stopped. Before the financial crisis broke out in 2008, the plastics industry in Malaysia was extremely optimistic about its future growth. However, due to the global economic downturn, the Malaysian plastics industry suffered a sudden blow and total revenue dropped by as much as 10%. In 2009, it dropped to just over US$4.9 billion.
However, at the K show, representatives of plastics companies from Malaysia said in an interview that in 2010, the economic downturn had stopped. The Malaysian Plastics Industry Association (MPMA) even predicts that the industry will grow moderately and sales will basically reach US$5.32 billion, close to the pre-crisis level. Malaysian plastics companies and MPMA hope to significantly promote the development of the industry through exports. In addition, they also hope that the government's incentive measures will also enable mature, pioneering companies to develop their own rich natural petrochemical resources.
About 1,500 companies in Malaysia are engaged in plastics production and processing. Small and medium-sized enterprises are the main force in the domestic plastics processing industry. According to MPMA data, Malaysian polymer production reached 1.8 million tons in 2009, mainly PE, PP, PVC and PS. They also produce ABS and PET. About 80% of the polymers produced are used domestically. However, in 2009, consumption was 1.7 million tons, which was 4% lower than the previous year. The decrease in consumption was due to the economic downturn, which was mainly caused by the slump in the automotive and electrical appliances and electronics industries.
Malaysia is a trading nation that mainly depends on exports. The country is also worried about low-cost production in China recently, and is worried that China will become a major competitor. In the past 10 years, the growth rate of plastics exports in Malaysia has been between 15% and 20%, and the share of the plastics industry in total industrial income has increased from 40% in the late 1990s to 60% today, although In the global economic downturn in 2008, it temporarily fell by 11%.
According to Mohd. Sabri Ab. Rahman, Malaysian trade commissioner in Frankfurt, Germany, the main application areas for Malaysian exports of plastics are soft films, sheets, bags, bottles and containers, mostly exported to the European Union, the United States, Japan and China. Singapore is also becoming an important export market for plastics in Malaysia.
In an interview, Sabri pointed out that according to the data of MPMA, it is expected that the Malaysian plastics industry's exports will further increase by 14%, and in 2010 will exceed 3 billion US dollars, reaching the level before the 2008 crisis. Malaysia's plastics imports fell to US$1.774 billion in 2009, a decrease of 9.3% compared to 2008.
Development of pharmaceutical plastics with its own advantages Malaysia's Ministry of Industry Development (MIDA), the investment arm of Malaysia, recently stated that it has found that the medical device industry has “great development prospects”. In 2009, the industry’s turnover reached approximately US$ 626 million. It is expected that sales will further increase significantly, and it is likely to reach 720 million U.S. dollars in 2011.
Malaysia supplies 80% of the global demand for medical catheters and 60% of the global surgical and inspection gloves market. Although gloves are mainly made of rubber, the current development trend has shifted to plastics, especially high-value medical gloves, sutures, surgical instruments, medical hoses and bags. About 180 local medical device manufacturing companies manufacture surgical gloves and examination gloves.
In addition, an increasing number of OEM suppliers manufacture plastic body panels, engine parts and electrical appliances, electronic components, and other automotive products in plastic. The 2009 MIDA transportation industry study shows that Malaysia is the largest car market in the ASEAN (Southeast Asian Union) region and has two OEM companies, namely Proton and Parodus. In addition, international automobile companies such as Toyota, Honda, Nissan, Mercedes-Benz, Volvo, BMW and Peugeot also have manufacturing facilities in Malaysia. Local OEM manufacturers include APM Automotive, Sepura and Delloyd.
Free industrial zone encourages development Malaysia's large number of production companies are located in more than 200 industrial parks. With the support of the government, 13 Free Industry Zones (FIZ) are still under development. The petrochemical industry has three major parks, including Kerlith in Terengganu State, Gebeng in Pahang State, and Pasir Gudang/Tanjung in Johor State.
High-tech as the basis for competition Although the Malaysian plastics industry has developed good technical and policy support, Malaysian plastic processors still face numerous challenges, such as the rising cost of petrochemical raw materials.
MPMA claims that the prices of these raw materials have doubled in the past four years and currently account for 50-80% of the total cost. Other problems include the high cost of electricity, additives, chemicals, packaging materials, and transportation. These high costs are difficult to pass on to consumers. For SMEs, these challenges will always exist. According to experts, the development trend of these companies will be to cooperate with multinational corporations for mergers and acquisitions.
Gernot Ringling, an expert in the plastics industry in the ASEAN region (and also the president of the AsiaPte company in Messe Düsseldorf, Singapore) told the author in a recent interview that the Malaysian plastics industry has been growing at an "astounding rate."
Ringling said: “Malaysia has always been a good market for us. Malaysian processors are very interested in high technology. Malaysian companies realize that they cannot compete with China, so they focus on high-value products. This is Malaysia. The chosen route is also the reason why Malaysian buyers are looking for high-tech products and suppliers."

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