Demand For Plastics Is Raising Up

The plastics industry  is expected to recover in 2010 after assessment of the Plastics Industry Ministry slightly. The turnaround was marked accordingly as early as from the second half of 2009 and was boosted by the increasing international demand and the economic stimulus packages launched in Thailand significantly. Specific growth forecasts for sales or production of the overall sector, however, neither the association nor get in official institutions.

Conclusions on the development of the industry can be drawn, therefore, primarily of the company sales and foreign trade statistics. For the full year 2009 decreased. Imports of plastic products, according to the Commerce Department by 15.1% to 2.1 billion. In the years before the industry had attracted a steady imports, with the growth rates 6-10% move. Approximately 37.6% of imports of plastics in 2009 accounted for films, foils and strips, as well as tubes and pipes (4.2%). The main source countries for Japan, China, Malaysia and the U.S.. Given the general upturn in imports, which in the first Half of 2010 by more than 50% compared with the same period last year were likely to explode, so do the imports of plastics relatively quickly recover.

The development of exports in 2009 was down. With $ 2.3 billion, exports of plastics were up 14.4% on the result of the previous year. Since 2004, the industry exports were still up significantly, and sometimes realize growth rates of 20%. The three main export items in 2009 set from films, foils and strips (32.1%), shopping bags (22.7%) and utensils (4.5% together). The biggest buyers of Thai plastic products were, according to the Commerce Department, the U.S., Indonesia and Australia. The mirror in the past compared with the import side, higher growth rates of plastics exports reflects the increasing international competitiveness of Thai industry companies.

Of a recovery in the future speak for assessment of the Government Institution Office of Industrial Economics (OIE) that the local main sectors for plastic products such as the automotive and electronics industry, the production of hard disks, the food and the packaging industry and construction in 2010 in some cases very high growth rates. In addition, affect the international economy, initiated in 2009 packages remain positive on the external demand for Thai products. Cross-exports to Thailand in 2010 by nearly 20% show up, which should also increase the demand of the highly export-plastics industry.

A good example is the development of the sector enterprises T. Krungthai Industries Plc (TKT), which mainly supplies the automotive and electronics industry with primary products. The plastics manufacturer was already in the first Quarter of 2010 achieved a new record and shows to follow media reports convinced that it can be for the full year growth target exceeded by 15% significantly. The Deputy Managing Director, Choompol Techakrisri projected in the Bangkok Post that the company\'s 2010 sales could due to the dynamic development of the Thai automotive sector as much as 30-40% in the skyrocketing. The production of the Thai vehicle was forging risen sharply in the first months of 2010 by almost 100%.

As a further driving force turns out to be for the Thai plastics sector is increasingly the establishment of the FTA AFTA (ASEAN Free Trade Area), which has taken on 1.1.10 with the drastic reduction of intra-regional tariffs to a new stage of development. Companies like Srithai Superware Plc, the largest melamine producer in Thailand to go, so even a "golden year off". The company\'s sales of packaging materials for food and drink sector to double over therefore 2010th To keep step with the rapid development and generate further economies of scale to be able to press reports, Srithai ordered to follow new technology from Europe.

In addition, the company plans to invest because of the increasing demand from the food sector in the expansion of capacity. Is planning Srithai, 650 million baht (B, around 13.5 million €, 1 € = 48.13 B - annual average 2009). For the expansion of spending three factories in Nakhon Ratchasima, Chon Buri and Samut Prakan. Of this amount, 130 million will flow B in the acquisition of new equipments. Another 130 million expected to be invested in B, the expansion of production facilities in India and Vietnam. Other industry companies such as Indorama Ventures Plc (IVL stretch) their probe even further to Europe and have in their investment activities mainly in Italy and the Netherlands in their sights.

The listed company Polypex (Thailand) Plc (PTL) uses contrast to the domestic market and has $ 22 million for a new production line output, which should start operating even during the year 2010th For the manufacturer of plastic films, this step is an important part of the overall strategy to continue to focus on products with higher added value. So far, simple films draw still responsible for around two thirds of the company\'s turnover. By 2012 this proportion to 50% will be reduced.

The biggest buyers of plastics in Thailand, according to the Institute PTIT (Petroleum Institute of Thailand), manufacturer of packaging, with a share of 49%, followed by electronics parts (12%), the motor vehicle industry (7%), construction at 6% and textiles, shoes, and the construction sector with 6%. Packages are expected in future especially in the wake of Thailand in order to gain more and more expansive use of ready meals in importance. As industry experts predict another trend seeing a greater focus on naturally degradable products such as bioplastics, where Thailand enjoys because of its natural resources is a huge potential.

From 24 27.6.10 to the fair was held in Thailand "Interplas 2010, which is regarded as the most important event for the industry in the Association of Southeast Asian Nations (ASEAN) - region. It found, according to the organizer 350 exhibitors from 15 countries and 35,000 visitors. The to 19 Edition of the fair was held at the International Exhibition Centre, Bangkok International Trade & Exhibition Centre (BITEC) in Bangkok, the next "Interplas is" on 23 scheduled to 26.6.11.(AH)

Source: www.plasticker.com

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