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ASEAN PLASTIC

END-USER MARKET TREND

Content

ASEAN ECONOMIC SITUATION

RESINS MARKET OVERVIEW

THE OPPORTUNITIES IN CLMV

• PLASTICS PACKAGING• VEHICLE• ELECTRONIC & ELECTRICAL• CONSTRUCTION• MEDICAL DEVICES• AGRICULTURE• AIRCRAFT

PLASTICS CONVERTOR MARKET

BIOPLASTICS

Upstream

Petroleum

Downstream

Petrochemical

Natural Gas/Crude

Ethane/Naphtha

Upstream / Interm.

Olefins/AromaticsMEG/SM/etc

Plastic Resins& Fibers

Plastics Products

220-500 340-560 1,200-1,500 1,300-1,600 > 1,400-3,200

Value in US$/ton

Downstream

Source: PTIT (as of June 2013)

Fuels/Lubes

Petroleum & Petrochemical Value Chain, 2012

3

Plastics Convertors

ASEANSITUATION

Countries/Region

GDP Value(Million USD)

World Ratio(%)

World 75,084,574 100

EU 18,594,944 24.76

USA 16,800,000 23.37

China 9,240,270 12.3

Japan 4,901,530 6.52

AEC 2,351,886 3.13

S. Korea 1,304,554 1.73

Other 21,891,390 29.15

Source : WORLD BANK5

World GDP: 2013

ASEAN GDP Growth : 2013

7

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Africa ASIA EU North USA Oceania South America

World Population: 2002-2013

Growth (%) 1.23 1.22 1.21 1.20 1.19 1.19 1.18 1.17 1.16 1.04 3.26 AAGR 2002-2013= 1.36%

Million People

year

7,122

AEC14%

Other ASIA86%

ASEAN+6 Population 2013

1,357

1,252

12750 23 4

24998 67 29 5 0.41 15 6 53 89

0

200

400

600

800

1,000

1,200

1,400

1,600

Source : World Bank (2012) / CIA Fact Book (2012)

Unit : Million People

ASEANCLMV

RESINSMARKET OVERVIEW

-10%

-5%

0%

5%

10%

15%

20%

0 10 20 30 40 50 60 70 80

Myanmar

PE & PP Market 2013Gr

owth

Rate

2012

-201

3 (%

)

Domestic Consumption Per Capita 2013 (kg)

Size = Domestic Consumption 2013 (KTA)

Indonesia

Brunei

Laos

Cambodia

China

USA

Vietnam

Philippines

Japan

SingaporeMalaysia

Thailand

S.Korea

Taiwan

Source: CIA World Factbook, IMF and PTIT, April 2014

- 2,000 4,000 6,000

Poland

Hungary

Sweden

Japan

United Kingdom

Malaysia

Austria

Italy

Hong Kong

Spain

India

Brazil

Taiwan

Canada

Iran

France

Netherlands

Thailand

Singapore

Germany

South Korea

Belgium

United States

- 5,000 10,000 15,000

Sweden

Czech Republic

Thailand

Russia

Malaysia

Brazil

Netherlands

Canada

Hong Kong

Poland

Spain

United Kingdom

Indonesia

India

Singapore

United States

France

Belgium

Mexico

Italy

Turkey

Germany

China

World Total Export: 48,919 KTAWorld Total Import: 57,600 KTA

2013 World Import-Export Ranking of PE&PP

KTA

Source: Global Trade Atlas, April 2014

KTA

PE & PP Market 2013

CountryConsumption

(KTA)Growth

(2012-2013)Consumption per Capita

(kg/person)

Thailand 2,729 2.6% 40

Cambodia 18 12.5% 1

Laos 11 10.0% 2

Myanmar 98 0.0% 2

Vietnam 1,736 7.1% 19

Brunei 1 20.0% 3

Indonesia 2,743 6.9% 11

Malaysia 1,462 4.7% 49

Philippines 843 4.5% 8

Singapore 196 3.7% 36

PLASTICS CONVERTORMARKET

COUNTRYIMPORT EXPORT

Value at 2013(Million US)

CAGR 2008-2013

Value at 2013(Million US)

CAGR 2008-2013

Thailand 3,696 4.7% 3,549 5.2%

Cambodia 195 15.4% 28 25.4%

Laos 76 16.4% 3 64.2%

Myanmar 270 25.2% 2 44.4%

Vietnam 2,620 19.6% 1,626 15.2%

Brunei 161 31.0% 0.2 0.1%

Indonesia 2,129 15.2% 1,405 5.1%

Malaysia 2,203 5.8% 3,399 3.8%

Philippines 726 8.2% 378 9.3%

Singapore 2,878 5.2% 2,517 6.0%

PLASTICS PRODUCT IMPORT – EXPORT (HS.3916-3926)

ASEAN’s Plastics Manufacturer

0

500

1,000

1,500

2,000

2,500

3,0003,000Companies

1,500

340

2,000

N/A N/A N/A N/A N/A N/A

Values of Thai Plastics Resin* Conversion Industry: 2013

Source: PTIT Data, Modified by PITH*Exclude PET and Nylon fiber

Safety

Others

Agriculture

Autoparts EE & Appliances

Construction

Footwares

Recreation

Housewares

Medicals

Filament (Non-textile)

Packaging

Total Production of ConversionValue: 566,841 Million Baht

(13,889 Million US$)Volume: 4,795 Ktons

191,683 Million Baht (33.8%)2,309 ktons (43.4%)

110,522 Million Baht (19.5%)757 ktons (14.2%)

62,793 Million Baht (11.1%)641 ktons (12.1%) 78,744 Million Baht (13.9%)

361 ktons (6.8%)

29,099 Million Baht (5.2%)82 ktons (1.6%)

25,769 Million Baht (4.5%)198 ktons (3.7%)

8,263 Million Baht (1.5%)73 ktons (1.4%)

18,436 Million Baht (3.3%)93 ktons (1.8%)

13,257 Million Baht (2.3%)48 ktons (0.9%)

12,105 Million Baht (2.1%)110 ktons (2.1%)

11,502 Million Baht (2.0%)89 ktons (1.7%)

4,697 Million Baht (0.8%)34 Ktons (0.6%)

17

Thailand, Malaysia, Myanmar and Singapore Market Segments of Plastic Products

Source: Department of Statistics

Packaging45%

Electrical & Electronics

26%

Construction8%

Automotive10%

Household7%

Other2%

Others2%

Packaging47%

Houseware, stationary

18%

Pipe & construction

meterial25%

Other10%

Film/ Bags24%

Pipes/ Profiles

10%

Bottle/ Containers

8%

Extrusion Coating

7%

Precision IM42%

Other9%

Packaging48%

Electrical & Electronics

15%

Construction14%

Automotive8%

Housewares4%

Agriculture2%

Recreation2%

Safety & Security

2%

Filament2%

Footwares1%

Medical1%

Other1%

Packaging62%

E&E7%

Auto Part7%

Construction7%

Houseware5%

Agriculture3%

Filament3%

Recreation2%

Footwear2% Medical

1%

Other1%

Safety& security0%

2013 Thailand PE & PP Market by Sector

Total PE& PP Consumption 2,729 KTA

PLASTICS PACKAGING

Population Food consumptionAlcoholic drink

value salesSoft drink

value salesMass grocery retail

sales

2012(Million Person)

2013 (%)2017e

(%)2013 (%)

2017e (%)

2013 (%)2017e

(%)2013 (%)

2017e (%)

China 1,350 13.3 13.1 8.3 8.6 7.5 7.1 8.8 9.0

Indonesia 246 7.9 9.3 6.7 6.4 6.0 6.5 13.2 13.7

Philippines 96 4.32 4.16 7.19 6.86 7.2 7.75 6.92 6.85

Malaysia 29 2.9 3.0 3.4 3.6 4.0 4.9 8.0 8.0

Singapore 5.3 4.46 2.41 6.04 5.64 3.49 2.94 2.92 2.76

Thailand 66 7.03 5.99 6.87 7.5 6.32 5.52 6.96 6.63

Vietnam 88 8.0 9.0 14.3 14.0 15.1 14.2 12.8 1.27

Food Industry Growth

Source Business Monitor International (2013)

0100200300400500600700

Indon

esia

Malay

sia

Sina

gapo

re

Thail

and

Philip

pines

Vietn

am

Camb

odia

Laos

Brun

ei

Myan

mar

ASEAN Trade Plastics Packaging (*3923) by value (2011 - 2013)

Unit : Million USD

Source : Global Trade Atlas (2014)

0200400600800

1,0001,2001,400

Indon

esia

Malay

sia

Sina

gapo

re

Thail

and

Philip

pines

Vietn

am

Camb

odia

Laos

Brun

ei

Myan

mar

Unit : Million USD

-500

0

500

1,000

Indonesia Malaysia Sinagapore Thailand Philippines Vietnam Cambodia Laos Brunei Myanmar

2011 2012 2013

IMPORT EXPORT

TRADE BALANCE

*H.S 3923 : Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics

Unit : Million USD

- 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Older population

Recycling

Smaller pack sizes

Smaller households

'On-the-go' lifestyles

New packaging material development

Brand enhancement/differentiation

Convenience

Health awareness

Rating

22

Respondents’ views on major drivers to growth in their respective national packaging industries over the next five years

Note: *averaged response whereby 4=critical; 3=very important; 2=fairly important; 1=relevant but notimportant; 0=not at all importantSource: Pira International Ltd survey of WPO member organizations

Packaging Key Drivers and Trends

Global Packaging Trend

Source : DuPont (2012)

VEHICLE

WORLD Motor Vehicles Production 2003/2013

Region 2013 2003 CAGR (2003-2013)

WORLD 87,300,115 60,618,600 +4.14 %

EUROPE 19,726,405 20,004,927 -0.16 %

AMERICA 21,136,313 18,246,489 +1.65 %

ASIA-OCEANIA 45,800,878 21,971,432 +8.50 %

AFRICA 636,519 395,752 + 5.42 %

Source : OICA (2013)

Unit : Unit

ASIA Motor Vehicles Production 2003/2013

Country 2013 2003 CAGR (2003-2013)

Total (ASIA-OCEANIA) 45,800,878 21,971,432 +4.14 %

CHINA 22,116,825 4,443,686 +19.52 %

JAPAN 9,630,070 10,286,318 -0.73 %

SOUTH KOREA 4,521,429 3,177,870 +4.00 %

INDIA 3,880,938 1,160,525 +14.35 %

THAILAND 2,457,057 742,062 +14.23 %

INDONESIA 1,208,211 322,044 +15.83 %

IRAN 743,680 56,7019 +3.06 %

MALAYSIA 601,407 34,5000 +6.37 %

TAIWAN 338,720 386,686 -1.46 %

AUSTRALIA 215,926 413,261 -6.96 %

PAKISTAN 142,145 51,692 +11.90 %

PHILIPPINES 52,260 53,777 -0.32 %

VIETNAM 40,920 21,492 +7.42 % ASEAN Counties

Source : OICA (2013)

Unit : Unit

67

251

30 106 92

314

1,351

50 1.33 1.22 0.66 0.21 0.10 23.67 19.31 1.56

Population (Million Person) Sales (Million Unit)

ASEAN Population per Sales Motor Vehicles 2012

51

206

45

497

956

13 70

32

Population Per SalesPopulation and Sales

Source : OICA (2013) / World Bank

ASEANDevelopedCountries

ASEANDevelopedCountries

PopulationSales

35.60%

17.20%12.50%

11.20%

9.90%

6.90%6.80%

Polypropylene

Polyurethanes

ABS

Composites

HDPE

PMMA

Polycarbonates

Source : Dallas, TX (PRWEB) April 27, 2012

Automotive Plastics Market for Passenger Car

Automotive Development Trend

Downsizing of engines resulting in an increased use of turbo systems

Weight Reduction via various metal-to-plastic conversion projects for powertrain and exterior/interior components

Electrification of subsystems

Development of Hybrid propulsion concepts and Electrical vehicle concepts

Introduction first of more safety systems

The Reason of weight reduction in Vehicle

So the incorporation of the lightweight materials as Plastics in automotive is a necessity and our common need

Performance & Fuel Efficiency

Every 10% reduction in vehicle weight results in 5% to 7% fuel saving

Reduce Carbon Emission

Every kilogram of vehicle weight reduction, there is the potential to reduce carbon dioxide emissions by 20kg

Portion of Material using in Vehicle

• Plastics will account for 18% average vehicle weight by 2020, up from 14% in 2000

Source : A.T. Kearney analysis

Note : kg=kilogram. Due to rounding, some percentages may not add up to 100.

ELECTRONIC & ELECTRICAL

WORLD Electronic Production by Region

0%

20%

40%

60%

80%

100%

1995 2000 2012

Rest of World

East Europe

Asia Pacific

West Europe

Japan

Canada

USA

Low Cost

High Cost

• Electronics Production incline to low cost countries

Source : The office of Industry Economic (OIE)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Thailand Singapore Philippines Malasia Indonesia Vietnam

COMPONENTS

CONSUMER

TELECOMMUNICATIONS

COMMUNICATIONS & RADAR

MEDICAL & INDUSTRIAL

CONTROL & INSTRUMENTATION

OFFICE EQUIPMENT

EDP

Unit : Million USD

ASEAN Countries E&E Production Values 2012

Source : The office of Industry Economic (OIE)

ELECTRONIC DATA PROCESSING

Malaysia

SINGAPORE

MALAYSIA

THAILAND

PHILIPPINES

VIETNAM

INDONESIA

ComponentsElectronic Data

Processing (EDP) Office Equipment Consumer

5th 8th 8th 25th

7th 5th 9th 4th

9th 6th 15th 8th

11th 11th 12th 26th

29th 22th 21th 21th

16th 24th 16th 11th

World E&E Industry's Production Ranking (2010)

Production Ranking

Source : The office of Industry Economic (OIE)

E&E Global Development Trend

Growing demand in using of Individual electronic application especially smartphone, computer and tablet.

Semiconductor is important to develop and create an innovation in E&E industry.

Most electronic equipment have multi-function and are compatible with other electronic devices.

Focusing on development of application comply to energy saving and environmental friendly concept.

Product life cycle tends to be shortened and product replacement occurs rapidly.

Focusing on rapid and high efficient production including zero waste released to the environment

CONSTRUCTION

25%

35%4%

31%

2% 1% 3%North America

Westen Europe

Eastern Europe

Asia

Middle East

Africa

Latin America

17%

24%

5%

46%

2% 2% 3%North America

Westen Europe

Eastern Europe

Asia

Middle East

Africa

Latin America

2005 2020

Source : HIS Global Insight (2012)

Share of Construction Spending by Region

China44%

Japan17%

India17%

Korea8%

Indonesia7%

ASIA Construction Values Spending by Countries 2012

Unit : Billion USD

Source : HIS Global Insight (2012)

1,245

487 477

222 184

43 30 26 20 19 18 16 130

200

400

600

800

1,000

1,200

1,400ChinaJapanIndiaKoreaIndonesiaTaiwanThailandBangladeshSingaporeVitenamMalaysiaPakistanPhilippines

Construction Spending Growth 2013 - 2020

CountriesCAGR

2013 – 2020 (%pa)

China 7.6

Japan 7.6

India 8.9

Korea 2.2

Bangladesh 6.1

Pakistan 4.3

Taiwan 3.2

Indonesia 4.5

Thailand 3.4

Singapore 3.5

Vietnam 6.7

Malaysia 4.5

Philippines 2.6

ASEAN

30.5

31.6

37.9

31.447.3

34.4 38.1 44.6

9.5

41.118.8 10.3

34.821.4 38.3

13.8

38.8

53.4

40.5

31.2 52.6

33.8 31.3 27.348.1

16.537

18.3

50.137.2

0%

20%

40%

60%

80%

100%

Non Residential Residential Infastructure

ASIA

Source : HIS Global Insight (2012)

Share of Construction Spending by Sector

ASEAN

55%

15%

12%

9%

2%2% 2% 1%

2% PVC

PS

PE

PU

PP

UP

PC

PMMA

Other

Plastics in Construction

Source : www.plastemart.com

• Commodity plastics such as PP, PS, PE, PVC, etc. use in construction industry

• The most of use plastics in construction is PVC as account for a half of all plastics in construction

Future Development of Construction Material

• Durable with knock and scratch.• High resistant with weatherability• Don’t rot and corrode.

• Flexibility for design.

• Light weight• Easy to move and transport• Safety / less accident

• Easy to install.• Fewer step to assembly

e.g. snap fit

• Low energy in processing• Environmental friendly

• Cost effective and reasonable

MEDICAL DEVICES

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050Asia Global China Indonesia Japan Malaysia EU USA Thailand

Population 60+ per Total Population

World Population 60+ Growth Rate

Source : US. Statistic Division

Asia

Medical Device Market by Region 2009 - 2013

020406080

100120140

Americas Asia/Pacifics Central/EastEurope

Middle East/Africa Western Europe

2009

2010

2011

2012

2013f

43%

21%5%

2%

29%AmericasAsia/PacificsCentral/East EuropeMiddle East/AfricaWestern Europe

Unit : Billion USD

Medical Device Market by Region 2013

Source : Medical Market Fact book

0

500

1,000

1,500

2,000

2,500

Indon

esia

Malay

sia

Thail

and

Philip

pines

Brun

ei

Sing

apor

e

Camb

odia

Laos

Myan

mar

Viten

am

ASEAN Health expenditure per Capita

Unit : USD

Source : World Bank (2014)0

2,000

4,000

6,000

8,000

10,000

USA Japan China S.Korea

2010

2011

2012

Unit : USD

ASEAN

Economic developed Countries

Plastics in Medical Device Industry

Source : “Medical Plastics QC: Handheld Raman for Raw Materials, Intermediates and Final Product Inspection”, http://www.analytik.co.uk and "Medical Plastics: Materials, Applications and Processingfor Medical Devices and Pharmaceuticals Industries", GE Plastics

Future Development of Plastics in Medical Devices

Disposable Medical Devices

Component Miniaturization

Resistance to Sterilize, x-ray, and gamma ray

Flexible design

Weight Reduction

แนวโนมวสดในอตสาหกรรมทางการแพทย

• ผสงอายจะท าใหแนวโนมความตองการใชโพลเมอร (ยางพารา และพลาสตก) ในเครองมอแพทยสงขน โดยเฉพาะในอปกรณพกพาและอปกรณทมความตานทานตอแรงกระแทรก

49

แขงแรง

ทนทาน

ยดหยน

น าหนกเบา

โครงสรางประชากรทมผสงอายมากขน

โพลเมอร(ยางพารา และพลาสตก)

AGRICULTURE

GDP Share by Sector

0% 20% 40% 60% 80% 100%

Thailand

Indonesia

Singapore

Malaysia

Philippiens

Brunei

Cambodia

Laos

Myanmar

Vietnam

0% 20% 40% 60% 80% 100%

USA

Japan

S.Korea

China

Agriculture Industry Services

Source : CIA Fact book

CLMV

ASEAN Reference Countries

AIRCRAFT INDUSTRY

Why Plastics is important in Aircraft Industry ?

• The use of modern polymer materials and reinforcing fibers makes it possible to achieve lightweight constructions and hence fuel savings

• Plastic components can normally be fabricated economically• Plastics are approximate 50% lighter than aluminium• Compared to metals, plastics do not corrode• Plastics provide a high degree of freedom in design• Plastics with modified sliding properties are best suited for use in dry

operation under extreme conditions• Transparent plastics serve as lighter and more impact resistant

alternatives to glass

Advantage of Plastics

Source : REPRINTED FROM THE IAPD MAGAZINE • april/may 2010

• The evolution of material in airplane move to use lightweight material as plastics composite for produce any components

• Boeing 787 and Airbus A350 use plastics composite produce component interior and exterior more than 50%

Evolution of plastics composite in Airplane

Source : GAO analysis of information from FAA, NASA, Boeing Company, Jane’s All the World’s Aircraft, and Jane’s Aircraft Upgrades

Evolution of plastics composite in Airplane (Con.)

Source : GAO analysis of information from FAA, NASA, Boeing Company, Jane’s All the World’s Aircraft, and Jane’s Aircraft Upgrades

BIOPLASTICS

“Bioplastics” Solution of Problem

Global alert and awareness on the plastics using problem is effect to environment. Therefore the development of Bioplastics to solving these problem in Bio-base form and Bio-compostable form

World Bioplastics Production (Con.)

• In the pass (2012) to the future (2017) Asia is the most production region of bioplastics accountfor 36.2% from 1.4 million tons in 2012 up to 45.8% from 6.2 million tons in 2017

Source : European Bioplastics, 2013

2012 World Bioplastics Production by Application

• In the present single use food packaging and equipment as a bottle, bag, catering application,etc. is the most application made from bioplastics around 1 million tons account for 71% of totalproduction at 2012

Total Bioplastics Production sort by region (2012)

Source : European Bioplastics, 2013

• The First generation to develop bioplastics as Disposables and Single use application so foodpackaging industry most appropriate

• And the Second and Third generation, bioplastics will move to semi-durable and durable applicationthat high value product as E&E component, automotive part including rigid packaging, etc.

Bioplastics Development & Trend

Source : National Innovation Agency, 2013

Basic RequirementEnd-Use Market Requirement

Automotive

Required Material

• Safety

• Light Weight

• Durable

• Affordable Price

• Easy Process

• Environmental Friendly

• Appearance

• Good Function Properties

End-Use Market Perspective

Electronic Electrical Appliances • Multi-function• Small size & Smart• Energy saving• Zero waste

Packaging• Green Material• Recyclable • Shelf Appeal• Convenience

Construction• Durable• Light Weight & Flexible• Easy to install• Low energy processing• Cost effective

Medical Devices• Deposal equipment• Miniaturization

Safety

Convenience

Aesthetic/Appeal

Cost Saving

Product Function

Productivity

Environment

• Weight Reduction• Electrification Improvement• Safety Improvement• Low energy consumption

PLASTICS

THE OPPORTUNITIES IN CLMV

COUNTRYPE& PP

Consumption (KTA)

PE& PP Consumptionper Capita (kg./person)

Machinery for Plastics and Rubber Import Statistic

Value at 2008 (Million US)

Value at 2012 (Million US)

CAGR 2008-2012 (%)

Thailand 2,729 40 878 2,004 23

Cambodia 18 1 2.6 10.5 42

Laos 11 2 1.8 7.3 43

Myanmar 96 2 8.1 64 68

Vietnam 1,736 19 438 651 10

Plastics and Rubber Machinery Import Statistic in CLMV

0%

20%

40%

60%

80%

100%

Thailand Cambodia Laos Myanmar Vietnam

Molds for Rubber or Plastics Except Injector CompressionMolds for Rubber or Plastic,Injection/Compression TypeParts of machinery

Others

Other machinery for moulding or otherformingRetreading pneumetic tyres/ moulding/otherwise forming inner tubesVacuum moulding&other thermoforming

Blow moulding

Extrusion

Injection moulding

Machines Extruding, Drawing Etc ManmadeTextilesFlexographic printing machines

Plastics and Rubber Machinery Import Statistic

1,400 2,150 2,522 3,133 3,801 4,2718,463

14,775

45,97953,266

0

10,000

20,000

30,000

40,000

50,000

60,000

ASEAN GDP Per Capita (2012)

High – End Market

Low – End Market

High – End Market(Advance & Specialty Product)

Low – End Market(Commodity Product)

US Dollar

Source : World Bank (2012)

THANK YOU

Plastics Institute of Thailand (PITH)MIDI Building, 86/6 Soi Treemit, Rama 4 RoadKlongtoye, Bangkok 10110