Plastic packagers see higher demand abroad
For example, industry and consumer plastic packaging materials manufacturers through the pipe Industry Bhd and lp Resources Bhd expect growth in the European, Japanese, Australian and New Zealand markets in 2011.
Overseas markets are expected to generate more than 90% revenue for Tongguan in 2011, compared with about 85% revenue this year, with increasing market contributions from Europe, Japan, Australia and New Zealand.
For lp resources, overseas markets are expected to account for more than 55% of the group\'s revenue in 2011, compared with about 50% this year.
The growing markets will come from Japan, Australia and New Zealand, which buy more due to the appreciation of the currency.
Thong Guan and lp resources will soon reinvest about 10mil and 6mil, respectively, to explore the growing overseas market.
However, the producers of engineering plastic products used in the consumer electronics industry do not have clear visibility into 2011.
This is due to the short service life of fashion consumer electronics in the market, prompting the media
Size engineering plastics manufacturers will diversify to manufacturing engineering plastics products for a longer life.
Huang ang Chuan, managing director of Tongguan, told StarBiz that the investment of about 10 million yuan will increase the monthly production of industrial plastic packaging materials to about 10,000 metric tons (MT)
First quarter of 2011.
He said that we will produce 1 thousand tons of industrial plastic packaging materials per month in first quarter of 2011, and the current monthly output is 9 thousand tons.
In 2011, revenue contributions from Europe should be around 10%, up from 5% this year, while the Japanese market should be around 35% next year, compared with about 30% in 2010. According to Ang, the Australian/New Zealand market is about 20%, up from 15% in 2010.
Thong Guan is the world\'s largest exporter of garbage bags, bringing about 40% of Japan\'s revenue each year. The group\'s industrial pallet stretch film has an annual income of about 55%.
Although the European economy is still trying to recover, there is still a large amount of industrial activity in Europe, especially in the major consumer goods industries that are circulating in the European market.
In a period of economic slowdown, demand for procurement from Asia is more dynamic.
Tong is also looking at new markets in Spain, Ireland and Russia, he added.
According to the market information of recent applications (AMI)
The research report shows that the annual demand for global pallet stretch film is expected to reach 3.
7 million MT, from 2 in 2014.
8 million metric tons in 2009.
Europe is the world\'s largest market, with production and demand accounting for 45% of the world\'s total.
The report added that the region has received significant investments in Eastern European countries in recent years, including Poland, Russia and Romania, as well as in ongoing investments in Italy, Spain and Germany.
The price of the pallet stretch film is currently around $1,600 per metric ton, up from $ 5% in 20019.
As crude oil prices remain strong, prices may rise again, Ang said.
The price of the main ingredient polyethylene resin is currently about $1,350 per metric ton, up about $150 per metric ton from 2010.
Kelvin Hawa, general manager of Lp, said the group\'s investment of about 2011 yuan would increase the group\'s annual output by about 12% to tons from 30,000 tons this year.
We expect the contribution of the Japanese market to grow from 35% this year to 28% in 2011, although the contribution of the Australian and New Zealand markets is expected to grow from 15% in 2011 to about 8% in 2010.
European contributions are expected to remain around 5% in 2011, the same as in 2010, he said.
Khaw said the group\'s expansion was based on its customer\'s forecast for new orders for 2011.
As most of our packaging materials are supplied to the food and beverage industry, our business is growing and the food and beverage industry is not greatly affected by the global economic slowdown, he said.
As a key raw material for consumer plastic packaging materials, the price of olefin resin is currently around $1,600 per metric ton, up from $1,520 last month.
We expect prices to remain stable as new olefin resin producers emerge in the Middle East
Khaw said China and the East in 2011.