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..
Raw Materials:
product consumption estimated
2001-2002 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 83,600 M
tones

 Polystyrene 16,394 M
tones
 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

2002 83,600 16,407 13,144

2003* 5,068
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
SECTOR
AT
A GLANCE:
Description Up-stream Down- Total
stream
No of plants 7 700(org) 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 43.2% 95.4% 138.6%

Utilization
Description Up-stream Down- Total
stream

Export 24.5% 35% 59.5

Growth
Contribution 0.114% 0.163% 0.277
to total
export
Contribution 0.129 1.558 1.687
to GDP%
Employment in800 600,000 600,800
sector
Skilled 1:2 1:3
:unskilled
Description Up-stream Down- Total
stream
Foreign 49% - 49%
investment
Technology Hi tech High/
inter/
low
Source of Japan, Japan,
machinery Norway, Korea,
UK,USA, Italy,
Taiwan, Germany,
Switzerland 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:
40
35
30
25
20
Units%
15
10
5
0
Lhr Gjr Mlt Gdn Others
 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 VALUE
(M tons) (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 VALUE
(M.Tons) (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 1%
imports
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.
 Burningthe 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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your question better
than the teacher !!
Thank you!
for bearing us. 