Raw material production in Pakistan
is extremely low and does not meet the required
demand. As per Government Statistics, the import
bill of all plastics raw material reached Rs.6.7
Billion in the year 1993. Uptil 1994, almost
all plastics raw material consumed in Pakistan
was imported, amounting to about 0.45 millions
tons of plastics raw material imports annually,
exerting a great burden on the national economy.
Various entrepreneurs in Pakistan
considered setting up of hydro-cracker plants
in Pakistan. In the corresponding period, in
neighbouring India, about 5 raw material producers
had commenced production of indigenous plastics
raw materials catering to the local industry,
as well exporting the surplus. This acted as
a trigger for the speedy implementation and
commencement of petrochem projects in Pakistan.
In 1984, to achieve self sufficiency in PVC
and to save foreign exchange, FCCCL in a joint
venture with FECTO (Pakistan) Limited had the
opportunity to submit a feasibility report and
application for setting up a 20,000 tpa plant
in Kala Shah Kaku near Lahore. The formal approval
was granted in January 1986, but the plant could
not be set up due to unknown reasons.
It was Engro Asahi Chemicals Pakistan, who took
the lead and set up a PVC Plant in Karachi-
the first of its kind in Pakistan. It was a
joint venture with Japanese companies that took
the initiative and established this mega project
in the country. Similarly 3 more plants producing
PET, High Impact Polystyrene, Melamine Formaldehyde
and Expandable Polystyrene were also set in
Karachi.
No statistics are available on
the exact consumption of plastics raw materials
in the country, but a modest estimation indicates
that more than one million tons of different
plastics are required every year. The present
production capacity of the four raw material
producers is about 288,000 tons. This can barely
meet 28% of the estimated demand, leaving a
shortfall of 722,000 tons. This gives room for
imports and constitutes a burden on the national
economy. The following table shows the present
production of raw material producers in Pakistan.
Plastics
Raw Material Production in Pakistan |
Company |
Product |
Capacity |
Gatron Industries |
PET |
120,000 Tons |
Engro Asahi Polymers
|
PVC |
100,000 Tons |
Pak Petro Chemicals
|
HIPS & PS |
34,000 Tons |
Dynea Pakistan Ltd. |
Methanol Urea Melamine |
34,000 Tons |
A brief rundown about the raw material producers
in Pakistan is as follows:
PET RESIN ( Polyethylene
Terephthalate)
Gatron Industries was established in
1984 as a producer of texturized and flat polyester
filament yarn. Successive innovations and developments
made Gatron the first and only producer of PET
bottle grade resin in the country. The present
production of PET Resin is 120,000 metric tons
of bottle grade material annually. The plant
is located on main Hub River Road some 35 Km
West of Karachi. Gatron Industries Limited has
its Polymerization Plant and Technology from
Zimmer AG, Germany, and the Solid State Polycondensation
Plant and Technology from Sinco Engineering,
Italy. With the best combination and innovative
management approach, Gatron produces the highest
quality PET Resin bottle grade named “Gatronova
PET Resin”, equivalent to any good quality
PET Resin in the world.
Presently there is a huge potential of growth
as demand is increasing due to high consumer
usage in Pakistan and all over the world.
PVC (Polyvinyl Chloride)
Engro Asahi Polymer & Chemicals
Limited Pakistan (EAPCL), in a Joint Venture
with Asahi Glass Company and Mitsubishi Corporation
of Japan set up a PVC Plant in Karachi. The
plant went into full production in the year
1999. and since then it is producing about 100,000
metric tons. Present domestic PVC requirement
is about 70,000 metric tons annually- an extremely
low level in Pakistan vis a vis global PVC consumption.
In terms of usage it is 0.49 kg per capita.
The surplus capacity is being exported to Australia,
Dubai, Bangladesh and other countries. In Pakistan.
there is a lack of awareness on the part of
PVC processors and consumers. Processors lack
a general awareness of the multi range and versatility
of PVC products. At present only traditional
PVC items are being manufactures i.e. pipes
and fittings, shoes, cables, bottles, water
conservation and compounding etc. A huge potential
for growth in PVC products indicates an tremendous
growth estimated in the years ahead for PVC
manufacturers.
HIPS (High Impact Polystyrene)
Pakpetro Chemicals Industries is recognized
nationally and internationally as a respected
producer of fine quality polyester resins. The
company was established in 1994 in collaboration
with a Taiwanese team. The unit is located 25
kms North of Karachi. Pakpetro produces 30,000
tons of GPPS and HIPs. About 60% of this is
domestically consumed, while the rest is exported
to Germany, South Africa, Lebanon, Egypt and
Turkey. Due to increased demand, the Company
plans to start local production of ABS in the
near future. Pakpetro as a sole producer of
polystyrene is planning to increase the capacity
by 40% initially and subsequently by 100%.
Methanol Urea Melamine
Dyno Pakistan Limited was formed in early 1982
as a joint venture between Habib Group of companies
and Dyno Industrier A.S.A of Norway. The name
of the company was changed to Dynea Pakistan
Limited in 2002. It is a public limited company
with Dynea A.S.A. of Norway & Habib Group
being the major share holders. Dynea A.S.A.
is a multinational with 100 wholly or partly
owned companies in over 40 countries. Core business
of Dynea A.S.A. is manufacturing of formaldehyde
& formaldehyde based resins. Almost 90%
of Dynea's turnover is generated outside of
Norway.
Dynea Pakistan Limited produces quality urea
resin for use in industries like particleboard,
chipboard, veneerboard and melamine resin for
lamination industry. Together with its wholly
owned subsidiary, Visionite Pvt. Limited, it
is also the largest producer in Pakistan, of
moulding compound used for manufacturing dinner
sets and electrical accessories.
Manufacturing of formaldehyde and aminoplast
resins and of moulding compound were both pioneering
ventures introduced for the first time in Pakistan.
Now only a small quantity of moulding compound
is imported into the country and there are no
imports of formaldehyde or liquid resins. Tableware
industry has grown 10 times because of the availability
of locally manufactured raw material. These
industries have also helped save huge foreign
exchange for the country.
In addition to above raw material producers,
another two raw material plants, one in Karachi
and other in Lahore, have yet to take off. These
units have a combined capacity of 35,000 metric
of EPS, HIPS and PS.
(Contributed by Mr. F Chaudhary
- a Karachi based journalist)