Specialty applications fuel demand for plastics

The Middle East undoubtedly holds immense potential as a leading producer and exporter of plastic products, petrochemicals and additives. The first GPCA Plastics Summit held in Dubai this year featured a gamut of industry experts who highlighted huge market opportunities within the region. According to Dr. Abdulwahab Al-Sadoun, GPCA Secretary General, the polyethylene and polypropylene production capacity in the Gulf region will increase from 10.7 million tonnes and 4.8 million tonnes in 2009 to 21.5 million tonnes and 9.5 million tonnes, respectively, by 2015. He further added: "This massive capacity expansion drive taking place in the Gulf region is also bringing a more diversified product portfolio to the industry with a number of new goods being produced for the first time in the Gulf region over the next 5 years including engineering plastics, acrylics and synthetic rubber." However, the region has its own set of business and environmental challenges too. Recently, European Union imposed import duties on plastics from Iran, Pakistan and the United Arab Emirates. The decision to impose massive duties means polyethylene terephthalate from UAE - predominantly used in food packaging and bottles - will bear import duties of 42.34 EUR per tonne until 2015. This decision will definitely impact on the export figures. The plastics industry also needs to manage critical environmental issues. For instance, the UAE government's decision to require all plastic bags produced in the country to be biodegradable by 2013 is expected to be emulated by other countries in the region. Sustainability initiatives intensify Excel International FZC, a distributor of oxo-biodegradable additives and other plastic materials in the region strongly feels the need to comply with the government's initiatives. A recipient of the prestigious "Emirates Quality Mark Certification" from the Federal body ESMA (Emirates Standards and Metrology Authority) for "Reverte Oxo-Biodegradable Additive" along with its UK principle supplier, Wells Plastics Limited, Excel International is an active player in both local and foreign markets. Besides additives, the company distributes plastics and paper based flexible packing materials and packaging machinery. Mr. Shakul Rai, Managing Director, Excel International FZC said that different product segments within the industry witnessed varying market trends. "The plastics and paper based flexible packaging segment has witnessed a steady growth as companies, including us, now offer cost-effective packaging solutions to clients, while meeting highest quality standards. Being capital equipment, the packaging machinery segment has faced a lot of challenges in the last 18 months due to slowdown in investments in machinery and capacity enhancement by customers. As for oxo-biodegradable additives segment, it has already witnessed significant growth this year and we feel that it holds a promising future." The biggest development in 2010 has been UAE Cabinet's decision for mandatory usage of "Oxo-biodegradable plastic" bags in all supermarkets and retail outlets as a measure to curb plastics littering and ensuing pollution, Mr. Rai added. "For the last 18 months, we have been helping UAE plastic processors to produce eco-friendly bags using Reverte Oxo-Biodegradable technology of our principals. Currently eco- friendly bags made with Reverte are being used in major supermarkets and shops." Mr. Rai added that the demand for 'Reverte' Oxo-biodegradable additives in the UAE would double in 2011. In support of government-led initiatives for environmental sustainability, Plastica Industries LLC started producing oxy-biodegradable bags nearly 4 years ago. Dealing in blown film and injection moulding products, the company produces oxy-biodegradable carrier bags for boutiques, hypermarkets and renowRunning Shoes & Gear