Plastic pipe market thrives with time

http://www.thedailystar.net/newDesign/news-details.php?nid=235818

Plastic pipe market thrives with time
Sohel Parvez

An increase in tube-well installation fuels demand for plastic pipes and encourages firms like Navana, Bengal and Gazi to invest more in the sector.

The market for non-biodegradable plastic pipes has seen a steady rise since it became an alternative to iron pipes in 1985.

Initially, the market consisted entirely of Old Dhaka-based small-scale manual factories, said Moniruzzaman Panna, managing director of Aziz Pipes, one of the oldest pipe makers.

But the landscape started to change as large firms — RFL (Rangpur Foundry Ltd) and National Polymer — were lured in by the growing demand for tube wells thanks to a rise in construction of new buildings.

Industry insiders said the annual market demand for plastic pipes stands between 80,000 tonnes and 125,000 tonnes, and has been growing by 15-20 percent over the past three years.

“The market for plastic pipes is expanding and we expect it to grow in the coming years,” said Atiur Rahman, assistant general manager of Navana Engineering, a concern of Navana Group.

Earlier this year, Navana started producing plastic pipes as water supply accessories. “We will also enter the sanitation and sewerage segment in four months,” Rahman said.

“Plastic pipes are cheaper and last longer than iron pipes, which get rusty after some years,” said Kamruzzaman Kamal, a director in the market leader Pran-RFL Group.

“There is scope for business as the market is growing with the increasing pace of urbanisation and expansion of cities and towns,” said Habibur Rahman, general manager of Bengal Plastic Pipes Ltd, a concern of Bengal Group of Industries.

The entry of more large companies in the market will enhance competition and raise the quality of products, Rahman said.

“Small factories that once ruled the market will gradually be lost to the competition,” he said ruefully.

Many small-cottage based factories were driven out of business in recent years, said Panna of Aziz Pipes.

40 pc growth in export of plastic products

http://www.bssnews.net/newsDetails.php?cat=2&id=206828&date=2011-10-18

40 pc growth in export of plastic products

DHAKA, Oct 18 (BSS) – Export of plastic products witnessed a 40 percent growth in the last fiscal as the country shipped plastic products worth Taka 2,000 crore especially to the USA and Europe.

“The demand for our plastic goods is increasing in different countries, especially in the USA and European countries, due mainly to restriction on Chinese products,” said Shamim Ahmed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).

He said manufacturers are producing plastic goods worth over Taka 8,000 crore annually.

According to BPGMEA and Export Promotion Bureau (EPB), the country exports plastic items valued at Taka 500 crore directly and Taka 1,500 crore indirectly to over 23 countries annually.

During the last five years, export of plastic goods increased by Taka 613 crore, witnessing on an average 40 percent annual growth.

Established as a backward linkage industry, plastic industry has now become one of the leading foreign currency earning sectors, said Shamim Ahmed adding that demand for Bangladesh produced plastic goods is increasing in the USA and European countries following imposition of a ban on China-made plastic-toys.

“If we can exploit this advantage, we’ll be able to export plastic products to the USA and European countries worth several billion US dollars,” he added.

Shamim said the sector needs policy support and cash incentive from the government.

“The government often talks about diversification of our export products and I think, plastic goods could be one of such diversified products if necessary support is extended to us,” the BPGMEA president added.

“Plastic is widely used for packaging export products and local manufactures are producing cent per cent such wrapping plastic item,” he added.

The plastic products that are now on export list include shopping bags, butcher bags, PVC pipe, polyethylene-sheets, ball- pens, tooth-brush, toys, hanger, hand- gloves, artificial flowers, table-covers, computer accessories, wastebaskets and wall-clocks.

According to the BPGMEA, major destinations of Bangladesh plastic products are Poland, China, India, Belgium, France, Germany, Canada, Spain, Australia, Japan, New Zealand, the Netherlands, Italy, United Arab Emirates (UAE), Malaysia and Hong Kong.

At present, there are 3000 small, medium and large plastic product manufacturing industries in the country and over six lakh people are directly and indirectly involved in this industry.

Plastic bag emerges as a new export product

http://www.thefinancialexpress-bd.com/more.php?news_id=133479&date=2011-04-23

Plastic bag emerges as a new export product
Doulot Akter Mala

The woven plastic bag has emerged as a fast-growing new export product, fetching a sizeable amount of export earnings and helping to diversify the country’s export basket.

Recently, the product has gained a wide popularity across the world for its durability, hygienic quality and reasonable price.

A number of local industries have invested billions of takas for production of the bag after they found its vast export potential.

As many as 60 industries have grown up in the last five years with an estimated investment of Tk 15 billion that are making woven sacks for local use as well as for the export market, industry insiders said.

“In the last two months, we have received orders for 4.0 million pieces of sacks from Indian business conglomerate, Birla, and Lafarge cement companies,” said first Vice-President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Mr Jashim Uddin.

Mr Jashim, who is the owner of the country’s largest plastic goods industry Bengal Plastic, said the bag is available at a reasonable price and it is also suitable for carrying food grains.

The bag is widely used for carrying cement, fertiliser, rice and other food grains, he said.

Mr. Jashim is also the former president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA).

The woven plastic sack comprises 50 per cent of the Tk 7.0 billion direct export earning from plastic goods, he said.

BPGMEA President Mr. Shahedul Islam said the woven sack is a successful example of export diversification.

It has gained tremendous popularity both at home and abroad, he said.

The plastic bag is considered a threat to jute promotion but due to its cheaper price it has become more acceptable to the users than jute bag, he added.

Mr Jashim said the government is preparing a law to discourage use of plastic bags and encourage use of jute bags.

“I am not against the jute promotion initiatives. Jute can be used for different other products, not only for bags,” he said.

A woven plastic sack is available at Tk 12 while a jute bag of the same size costs Tk 70-80, he said.

Referring to a discussion at a recent meeting on encouraging use of jute bags for fertiliser distributed by Bangladesh Chemical Industries Corporation (BCIC), Mr. Jashim said the government found that it would have to provide Tk 3.0 billion as subsidies to introduce jute bags, instead of plastic ones.

Prices of food grains will also jump if jute bags are used and this will cause an additional pressure on consumers who are already hit hard by spiralling prices of essentials, he said.

He said the government should sit with the businesses for fixing policies relating to uses of jute, instead of that of plastic.

Bangladeshi company to invest $29m in DEPZ

http://www.bssnews.net/newsDetails.php?cat=2&id=171456&date=2011-04-07

Bangladeshi company to invest $29m in DEPZ

DHAKA, April 7 (BSS) – A Bangladeshi company will set up a plastic raw materials processing and polyester synthetic and yarn manufacturing industry in the Dhaka Export Processing Zone.

Bengal Petrochem and Synthetic Textile Limited, the 100 percent Bangladeshi owned company, will invest 29 million US dollars in setting up their unit and will manufacture plastic raw materials processing and polyester synthetic and yarn items, a BEPZA press release said.

“The company will also create employment opportunity for 1,200 Bangladeshi nationals,” it said.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority (BEPZA) and M/s Bengal Petrochem and Synthetic Textile Limited at BEPZA Complex here today.

Md Moyjuddin Ahmed, member (Investment Promotion) of BEPZA, and Humayun Kabir, Director of M/s, Bengal Petrochem and Synthetic Textile Limited, signed the agreement on behalf of their respective organizations.

Major General A T M Shahidul Islam, executive chairman of the BEPZA, was also present on the occasion.

Rubber exports rose 103pc during July-January

http://www.theindependentbd.com/business/finance/34428-rubber-exports-rose-103pc-during-july-january.html

Rubber exports rose 103pc during July-January
AKRAM HOSSAIN

Dhaka, Feb 14:Rubber producers and exporters have witnessed exponential growth in the last seven months, on the back of rising demand in international and domestic markets. During July-January, earnings from rubber exports stood at USD 10.06 million, an increase of 103.64% over the corresponding period in the previous year, according to data published by Export Promotion Bureau (EPB). Target for rubber exports were set at USD 5.71 million, for the period under review.

Businessmen from 54 countries, specially India, China, Saint Barthélemy, Malaysia, Turkey, Singapore and Pakistan are showing keen interest over Bangladeshi raw and processed rubber for its quality, Syed Moazzam Hossain, president, The Bangladesh Rubber Garden Owners Association (BRGOA), told The Independent. “This year, we are not far from the targeted rubber exports,” he added.

The global shortage and price-hike of rubber were forcing international traders to treat Bangladesh as an alternative source, he pointed out. “The budget has imposed 15 per cent VAT on us, restricting the sector’s growth,” Hossain said.

Local planters sell rubber latex sheets, which are perishable items, for industrial use, he said, adding, “Sandals made from raw rubber is supposed VAT free. But producers still have to fork out VAT.”

Imposing VAT on raw rubber is “unfair”, as the government has withdrawn VAT from all agro-based products, such as rice, jute, potato or tomato, to boost growth in these sectors, he said. A rubber tree absorbs more carbon dioxide than other trees, Hossain said, adding that the new VAT will also threaten the environment and discourage plantation.

A 17-member delegation had visited Malaysia from January 26 to 29, to gain knowledge and exchange views on rubber plantation and processing, explore areas of possible cooperation, and establish business network between rubber planters of the two countries, he added. Growers said a large number of foreign traders were looking for rubber here, as its price in the local market was lower than that of current global prices, which has gone up in an unprecedented manner.

Cultivation of rubber is relatively new in Bangladesh, compared to other countries. The government has been encouraging plantations in the hill areas, since 1980. About 45,000 acres of land have been allotted to the BFIDC so far, and 32,500 acres to private owners, for rubber plantations.

Sudden spurt of foreign demand for local rubber

http://www.newagebd.com/2010/may/01/busi.html#1

Sudden spurt of foreign demand for local rubber
Shakhawat Hossain

Local rubber growers are having a good time as a growing number of international traders are looking for rubber in Bangladesh because of the current shortage of the item in the global market.

The Bangladesh Rubber Garden Owners Association’s general secretary, Harun-ur Rashid, told New Age on Thursday that businessmen from Turkey, Pakistan and India have come here looking for rubber.

Some growers have already shipped out around 1,200 tonnes of rubber in the last six months and many other orders have already been received. The global shortage and price-hike of rubber were forcing the international traders to treat Bangladesh as an alternative source, he added.

Growers said that a large number of foreign traders were looking for rubber here as its price in the local market was at least $1 lower per kg than that of current global price, which has soared in an unprecedented manner.

According to the London-based Financial Time, the price of natural rubber, the commodity used to make products ranging from tyres to condoms, has hit an all-time high [above $3.50 per kg] in the current month after a severe drought in Thailand, the world’s largest producer, curtailed supplies.

The price-hike of rubber has broken one of the longest standing price records in commodities, dating back to 1952, when fears about the potential spread of the Korean War to key South-East Asian rubber-producing countries triggered panic buying, added the Financial Time.

Besides the international shortage that has led to traders coming here, local consumption of rubber has also gone up substantially, elating the local growers, said a senior official of the Bangladesh Forest Industries Development Corporation. The BFIDC, the state-owned rubber plantation, cleared its stock-lot of 6,000 tonnes of rubber four months ago, though it has been facing difficulties in clearing its stock-lot since 2008, he added.

The rubber growers said that the country produces about 10,000 tonnes of rubber per year with BFIDC accounting for 60 per cent of the production. The other 40 per cent comes from the private growers who were permitted to plant rubber trees in the 1980s.

The country has attained self-sufficiency in rubber, which is mainly bought by footwear industries and tyre and tube producers.

Rubber has huge export potential, especially to India that imports nearly 1,00,000 tonnes of rubber to meet its internal demand of 10,00,000 tonnes annually.

Plastic fair makes brisk business

http://www.thedailystar.net/newDesign/news-details.php?nid=123913

Plastic fair makes brisk business
Star Business Report

Participants in the sixth Dhaka International Plastic, Packaging and Printing Industrial Fair were satiated on the concluding day yesterday, as they received large volumes of spot sales and orders.

A total of 350 local and foreign firms took part in the fair.

Manufacturers and machinery importers received orders worth around Tk 500 crore, while many sold machinery essential to produce packaging materials for pharmaceuticals and garment factories.

At present, the country’s growing garment and pharmaceutical sectors are sourcing most packaging materials from local makers, one of the main drivers of the growing plastic market, said industry people.

They said the Tk 4,000 crore local market is growing at 20 percent a year. At present, local manufacturers are exporting plastic hangers, polybags and shopping bags.

Morshed Alam, managing director of Bengal Group of Industries, said the local market is growing fast, as the sector is becoming cost-effective and producing high quality products.

“The market was not big even 10-12 years back. But now local producers are able to meet the demand for packaging materials of the garment and pharmaceutical industries, ” he said.

Bengal Group of Industries, which holds nearly two thirds of the total market share, won the ‘Best Company Award’ at the fair.

Along with packaging materials and home appliances, the company recently began producing adhesive items.

Bangladesh Plastic Goods Manufacturers and Exporters Association and Chan Chao International Co Ltd jointly organised the four-day event at Bangabandhu International Conference Centre in Dhaka.

In addition to locally produced items, imported machinery was also popular at the show, as most importers received satisfactory sales and spot orders.

Saiful Islam, manager of Shazin Trade International, said his company sold 5 packaging machines worth Tk 18 lakh and received some more orders.

Abdur Rahim, managing director of Global Plastic which imports machinery to produce pet bottles, said they experienced brisk sales worth Tk 5 crore.

At the concluding ceremony, plastic goods manufacturers urged the government to relax the customs and bank guarantee rules, extend cash incentives and promptly establish a Plastic Industrial Park.

HT Imam, adviser to the prime minister, and Ferdous Wahed, president of the plastic makers’ association, also spoke.

Local firms seek to shore up foothold in tyre business

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Local firms seek to shore up foothold in tyre business

A salesman arranges locally made tyres at a shop in Dhaka. Bangladesh is missing out on opportunities to tap the rising local demand for tyres in absence of large manufacturers here.Photo: STAR

Sajjadur Rahman

Local manufacturers are coming up to tap growing opportunities in tyre business that now depends heavily on imports.

Husain Tyre, which started production in 1996 with three-wheeler scooter tyres, makes more than 10 types, including light ones for small trucks and microbuses.

Gazi Group, a plastic product manufacturer, started producing automotive tyres three years ago. Now Meghna Group plans to enter the market soon.

“Initially, we will make motorcycle tyres by June next year. We have already started producing tubes for motorcycle tyres,” said Mizanur Rahman, chairman of Meghna Group.

Despite a growing use of automobiles here over the years, Bangladesh is missing out on opportunities to tap rising demand for tyres in the absence of large manufacturers.

On the other hand, Nepal and Sri Lanka, relatively small markets, produce tyres to meet their domestic demand.

According to Bangladesh Road Transport Authority, around 150 new motorised vehicles are added to city streets every weekday. A total of 2,18,000 new vehicles were registered in the last two and a half years.

Bangladesh spends Tk 1,000 crore to import up to 15 lakh tyres a year, according to importers, distributors and sellers.

Manufacturers, such as Husain and Gazi, are yet to pick pace and compete with giant Indian and Japanese tyre makers.

“The market is dependent on imports,” said Mohammad Muzahid, an executive committee member of the Tyre Merchants’ Association and an importer of Indian Good Year tyre.

Although there is no exact data on the market share of imported and locally produced tyres, Humayun Kabir Liton, office secretary of Tyre Merchants’ Association, said the use of local tyres is rising fast.

“Local tyres will be able to grab a 10 percent market share in the next couple of years,” said Liton, who has been in the business for nearly 15 years.

The tyre market has been growing fast, but local big companies did not make an entry to this sector as it requires large capital investments and consistent power supplies.

Years ago, two big names — Rahimafrooz and Nitol — moved to produce automotive tyres, but their plans did not carry through for high capital investment requirements and dependence on the import of raw materials.

“When we took an initiative to produce tyres locally, more than seven years ago, the market was not as big as it is now,” said Niaz Rahim, a director of Rahimafrooz Group.

“At the time, the investment cost was estimated at Tk 250 crore — now it will be no less than Tk 400 crore for the same project,” he added.

India’s JK Tyre also tried to set up a joint venture to make tyres in Bangladesh several years ago.

Importers and sellers found the scarcity of raw materials in the country as an obstacle to producing tyres in Bangladesh.

“Rubber, chemicals, carbon and yarn — all have to be imported,” said Humayun Kabir, another importer. “The poor supply of power also discourages investors.”

Bangladesh imports at least 60 percent of its tyre requirements from India, followed by China, Indonesia, Japan and Thailand, industry people said. Prices of tyres have also quadrupled in the past decade, riding on growing demand.

Niaz Rahim of Rahimafrooz did not rule out the possibility of a joint venture to manufacture tyres.

Zakir Husain, managing director of Husain Tyre, declined to comment on the country’s tyre market.

sajjad@thedailystar.net

Local company to Invest $ 7.9m in Adamjee EPZ

http://www.theindependent-bd.com/details.php?nid=154263

Local company to Invest $ 7.9m in Adamjee EPZ
ECONOMIC REPORTER

Bangladeshi company Mis. Mikhail Plastopak Limited will set up a Rubber, Plastic, Papaer Products and Garments Accessories Manufacturing Industry in Adamjee Export Processing Zone.

This100 per cent local owned company will invest $ 7.893 million in setting up their unit and will produce Rubber, Plastic, Paper Products and Garments accessories Items. The company will also create employment opportunity for 596 Bangladeshi, says a press release.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Mis. Mikhail Plastopak Limited in BEPZA Complex, Dhaka recently. Md. Moyjuddin Ahmed, member (Investment Promotion) of BEPZA and Md. Fahad Muneem Rahmatullah, managing director of Mis. Mikhail Plastopak Limited signed the agreement on behalf of their respective organisations.

Pharma packaging shores up foothold

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Pharma packaging shores up foothold
Sayeda Akter

The pharmaceutical industry is fast becoming self-sufficient in packaging and meets more than 90 percent of the need, which was previously import-dependent.

Industry people said the local packaging industry is growing at a rate of 10 percent a year. Simultaneously, pharmaceutical companies are sourcing most primary and secondary packaging from local manufacturers.

They said the packaging industry is divided into two types — primary and secondary. Primary packaging includes blisters (tablet strip), aluminium foil printing, glass and pet (plastic) bottles, PVC film, bottle caps, saline bags and flips of seal. Bottle labels, plastic wrapper, cardboard boxes and wooden cartons are part of the secondary packaging industry.

The packaging industry is growing fast in mainly three categories: manufacturing of glass and plastic bottles, cardboard and printing.

It started developing in 1982 when the National Drug Policy was laid out and the local pharmaceutical industry started gaining momentum. However, the industry started growing at the present rate in the last decade, said industry people.

The market size of the pharmaceutical packaging industry stands at around Tk 500 crore a year, which is 7 percent of the pharmaceuticals’ total market size, according to an estimate.

AM Faruque, managing director of Eskayef Bangladesh Ltd, said the packaging industry has developed a lot, now meeting more than 90 percent of the domestic need.

“The growth of the packaging industry is closely linked to the advancement of the local pharmaceutical industry,” he said.

“The growing packaging industry helped local pharmaceuticals save on the cost of packaging material imports,” Faruque said. “But now, local companies are producing all types of primary and secondary packaging, except PVDC film and aluminium foil.”

PVDC film, or commonly known as transparent foil, is mainly used in making capsules, while aluminium foil is used in producing strips for capsules or tablets.

Eskayef has been growing at a rate of 30 percent a year, which also indicates growing demand for packaging.

Around 350 small, medium and large companies are involved in packaging, printing and glass manufacturing to serve the 250 local and multinational pharmaceutical companies.

Tahmid Ahmed, director of Bengal Glass Works Ltd, the largest glass bottle manufacturer and supplier to the pharmaceutical industry, said his company started in 1974, but commercial production picked pace in the past decade.

“Our present annual production capacity is 250 million glass bottles of various sizes with very fine specifications. These bottles cater mainly to the needs of the pharmaceutical industry for bottling their lifesaving medicines,” he said.

“The locally produced bottles help preserve the quality of medicine. It keeps the medicine cool and ensures longevity.”

The company makes two types of bottles — of amber glass and flint glass — with capacities ranging between 15ml to 500ml. Flint glass bottles are also known as white glass bottles, which are typically used in storing antibacterial solutions such as Savlon and Dettol.

The demand for amber glass accounts for around 90 percent of total consumption, which is used to store all other types of syrups.

Ahmed said the market size for glass bottles hovers around Tk 80 crore.

However, demand for plastic (pet) bottle is gradually rising. Many pharmaceutical companies have developed their own production unit for pet bottles, such as Square Pharmaceuticals Ltd.

Ahmed Kamrul Alam, assistant general manager of Square Pharmaceuticals Ltd, said his company sources all sorts of secondary packaging locally and they produce pet bottles in their own factory.

“Additionally, we have a printing house to produce labels for bottles and plastic wrappers for saline solutions.”

Apart from the giants, small and medium entrepreneurs are also producing bottles, saline bags and syringes. Their production accounts for 20 percent of the country’s local plastic goods market that is worth Tk 4,000 crore a year.

Selim Ahmed, managing director of Meghna Plastic Ltd, an old Dhaka based pet bottle producer, said he started production in 2001 and delivers to reputed local pharmaceuticals.

However, he complained the high duties on raw materials are raising the prices of the locally produced plastic goods. As a result, local products sometimes have to compete with cheap Chinese and Indian substitutes.

The country imported polypropylene, polyethylene and spherizone, the raw materials for plastic goods, worth $40 million in 2008.

Simultaneously, the carton and printing industry also grew shoulder-to-shoulder with other packaging materials, with a market size of around Tk 200 crore a year.

Abdullah Al Redwan, director of The Merchant, a printing and packaging company, said many new investors are coming to the sector, inspired by growing demand for local packaging materials.

Around 30 local companies are producing and supplying cardboard boxes and wooden cartons to the pharmaceutical industry.

sayeda@thedailystar.net

Govt to withdraw condition of inscription of bond facility

http://www.thefinancialexpress-bd.com/more.php?news_id=85688

Govt to withdraw condition of inscription of bond facility
Doulot Akter Mala

The government is set to withdraw the condition of 100 per cent bank guarantee equivalent to customs duty or mandatory inscription of bond facility on import packets of plastic raw materials to help the backward linkage industry.

The National Board of Revenue (NBR) has taken the move to ease hassle and reduce additional cost on import of plastic raw materials, a backward linkage industry for readymade garments export.

“It is a long-drawn demand of the plastic raw materials importers who have been bearing the additional cost due to imposition of the measure,” said a senior customs official.

The NBR in principle agreed to withdraw the condition for the benefit of plastic raw materials importers who are enjoying bond facility, he said.

The caretaker government has imposed the condition of providing 100 per cent bank guarantee on import of plastic raw materials under the bond facility if the exporters failed to inscribe the statement ‘Imported under bond, not for sale’ in indelible ink.

“It is not possible for exporters to inscribe the statement as the machine is not available in the exporting countries. So, plastic raw materials importers have provided bank guarantee,” he said.

It escalates cost of production of the backward linkage industry that is affecting RMG export, he added.

“We have to help the exporters to stay competitive in the international market rather than imposing tough conditions on them,” he said.

Talking to the FE, Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) president Ferdous Wahid said: “The imposed condition is benefiting neither the government nor the exporters, only banks are getting advantage of the measure.”

Plastic raw materials importers have been paying millions of taka as bank interest because of this condition that escalates cost of production, he added.

“We are also facing liquidity crisis as a big chunk of money is blocked for such bank guarantees,” he said.

The government should withdraw the irrational measure immediately to make the country’s RMG competitive in the international market, he said.

The government has imposed the condition to thwart abuse of bond facility and market distortion.

“Customs can apply other ways to check abuse of bond facility rather than imposing irrational conditions on exporters,” the BPGMEA president said.

The government has imposed the measure in 2007 which saw several changes in the last two years.

In the budget for fiscal 2007-08, the government made it mandatory to mark the bags containing plastic raw materials as ‘Imported under bond, not for sale’ in red, using the punching method.

But the importers had been facing a problem in import as marking the bags with seals containing the statement by using the punching method is not possible in case of petro-chemical products.

Later, the government changed the rules incorporating the provision of indelible ink instead of punching method. It has also given an option of providing 100 per cent bank guarantee in case of failure in inscription of the statement.

Bicycle tyres reach foreign markets

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Bicycle tyres reach foreign markets

Sajjadur Rahman

A local company has made a foray into the international tyre market by earning Tk 35 crore in exports in a year.

Meghna Rubber Industries, a concern of Meghna Group, began exporting tyres in August 2008. The biggest slice of the company’s exports was destined to European countries, with other major export markets being Brazil and Taiwan.

“An interesting aspect of tyre exports is value addition. We use locally produced rubber, the main component of tyres,” said Mizanur Rahman, chairman of the group.

Rahman said earnings from tyre exports could reach Tk 500 crore annually in future, if the government comes forward with helping hands. “Government incentives will give us some advantage over our competitors.”

The global bicycle tyre industry is worth several billions of dollars. Only Europe consumes 3 crore bicycles annually. Additionally, bicycle tyres need to be replaced at least twice a year, according to industry people.

Meghna Rubber Industries is going to double its capacity from the present 20,000 tyres a day by this year, to meet growing export demand, said MA Halim Khan, executive director of the group.

“We have already geared production,” Khan said.

Meghna Group is also the leading manufacturer and exporter of bicycles in the country.

The export potential of bicycle tyres has cushioned local rubber manufacturers, who were previously facing slack demand for rubber.

Currently, the country is capable of producing about 30,000 tonnes of rubber a year, but some 10,000 tonnes are currently being produced a year because of limited market demand.

“We consume about 150 tonnes of rubber a month to produce bicycle tyres,” Khan said. “It could be doubled in one year.”

Motahar Billah Chowdhury, vice president of Bangladesh Rubber Garden Owners Association, said, “we are getting better prices for rubber now than two years ago because of increased use of the item by tyre manufacturers.”

“Both the demand and price of local rubber is rising,” said Chowdhury.

However, rubber producers are still getting lower prices for their produce than in India and Malaysia, the two closest markets. “We get only $1.5 for a kilogram of rubber, which costs $2.17 in India.”

sajjad@thedailystar.net

6th Dhaka in’l plastic fair kicks off in January

http://www.newagebd.com/2009/oct/16/busi.html#2

Plastic makers closely watch apparel exports
6th Dhaka in’l plastic fair kicks off in January
Staff Correspondent

Country’s plastic manufacturers and exporters are keeping a watchful eye on garment exports, as apparel industries consume huge plastic materials.

However, they are satisfied because most sub-sectors of the plastic industry are still doing well.

‘Most sub-sectors of the plastic industry are still doing well. But we are closely watching garment exports, as the apparel industries consume huge plastic materials,’ Ferdous Wahid, the president of Bangladesh Plastic Goods Manufacturers and Exporters Association, told a briefing on Thursday at the office of the association.

At the briefing, the BPGMEA president announced that the sixth Dhaka International Plastic, Packaging and Printing Industrial Fair would be held at the Bangabandhu International Conference Centre over January 25-28, 2010.

The association leaders demanded that government speeds up development of country’s industrial infrastructures and elimination of hassles in doing business for strengthening the competitiveness of local exporters.

Plastic goods manufacturers and exporters claim that they supply polythene packaging, buttons, hangers and other plastics accessories to garment exporters worth over Tk 2000 crore every year.

The BPGMEA president informed that some two hundred enterprises half of which are from abroad are expected to attend the fair to showcase their products and services at the four-day long fair. Overseas participants will include companies from all over the world.

The fifth plastic fair held in 2008 accommodated 68 local and 68 foreign companies and that the fair was visited by more than 1.1 lakh visitors, the reporters were informed.

The Taiwan-based international event management company, Chan Chao International Company Limited, will manage the fair that will showcase latest technologies for plastics industries, raw-materials and allied products and services.

About the sub-sectors of the plastic industry, the BPGMEA president said that among the sub-sectors, PP Woven bag manufacturing and household plastic ware manufacturing ones that are doing well at the moment.

The country is experiencing increased local consumptions of household plastic appliances and furniture as well as exports of these products to neighboring India, Nepal and Myanmar.

Supershield to manufacture PVCu doors, windows

http://www.thefinancialexpress-bd.com/2009/07/03/71756.html

Supershield to manufacture PVCu doors, windows

FE Report

Supershield Bangladesh Limited (SBL) is going to manufacture environment friendly PVCu doors and windows which are sound and heat-proof.

Non-Resident Bangladeshis (NRBs) will finance the project.

State minister for housing and public works Advocate Abdul Mannan Khan inaugurated the operations of the company Wednesday.

Stephen Evans, British High Commissioner in Bangladesh was the special guest of the inauguration programme.

SBL claimed PVCu doors and windows are highly secured, heat and sound proof. They would prevent houses, hospitals, schools, colleges and commercial organisations from sound pollution.

SBL chairman, Koyes Ahmed presided over the programme. SBL managing director Moinul Islam, production director Barry D Schmid, and REHAU director Ajay Khorana among others, spoke in the programme.

Plastic raw material maker eyes markets in Asia, Middle East

http://www.thedailystar.net/newDesign/news-details.php?nid=91927

Plastic raw material maker eyes markets in Asia, Middle East
Star Business Report

Taking advantage of the reduction in plastic item production in developed countries, including US and Europe, due to the ongoing global financial meltdown, LyondellBasell, a Dutch company who produces polypropylene and fuel, now eyes capturing Asian and Middle Eastern (ME) market, said the company’s commercial director yesterday.

“Asian countries, including Bangladesh, are emerging as plastic products makers, while the production has reduced in the rich countries, hurt by the financial crisis worldwide. This scenario has prompted us to pay special attention to these markets,” Domenico Gigliobianco told a seminar in Dhaka.

LyondellBasell and Linkers (Far East) Private Ltd jointly organised the seminar on Presence of LyondellBasell in the Region and the Value for Our Customers.

Linkers (Far East) Private Ltd, a Singapore based company, is the sole agent of LyondellBasell in Bangladesh.

The LyondellBasell official further said, “Bangladesh is an important market for us, as its RMG and plastic furniture manufacturing has experienced a huge growth, which requires polypropylene.”

Bangladesh, the plastic goods market size of which is worth Tk 4,000 crore a year, imported $40 million polypropylene, polyethylene and spherizone, the raw materials for plastic goods, last year.

Lauding that Bangladesh is doing well in plastic furniture, Gigliobianco said, “Bangladesh, who also produces plastic hangers for the RMG industry, a front on which it has showed a tremendous performance, creates a huge prospect for exporting plastic goods.”

He also pointed to the fact that the market for plastic products in Asian and Middle Eastern countries is growing at six percent in recent years. The global production of polypropylene will double and reach 3500 million tonnes by 2013.

Currently, the local plastic industry fetches Tk 600 crore a year from exports, while the country has potential to export goods worth Tk 1200 crore, according to industry insiders.

Local plastic products include hangers, various sheets, including polycarbonate sheets, PP sheets, HIPS sheets and polystyrene sheets, billboards, POPs, POSMs, dispensers, pipe, home appliances, luggage, danglers, banner stands, shop signs, kiosks, road safety signs, scroll signs, tri-vision, zigzag signs, automated moving signs and electro-magnetic signs.

Deepali Kelekar, technical and innovation manager of LyondellBasell, and Rezwanul Haque, country manager of Linkers (Far East) Private Ltd, were also present at the seminar.