Asian Glass AG16-5 Edition

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AG16-5

OFFICIAL MAGAZINE

GLASSTECH ASIA 24-26 NOVEMBER VIETNAM

Inside:

Coatings and facades SE Asian packaging markets Coated glass in Vietnam Glass fibre expansion

PLUS!

news, views, analysis and much, much more!

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Contents: AG 16-5 Regulars

Features

6 Welcome

32 SE Asian packaging round-up: p1

Fuyao: one year in…

8 Headline News

Openings, closures and industry moves from across Asia.

12 Global View

Our eye on the international arena.

16 People and Places Movers and shakers, ups and downs.

Jahir Ahmed discusses that although glass packaging may be slowing elsewhere in the world, ASEAN is poised to become 10% of the global market as growth continues apace.

44 Building the Opus

Agnes Koltay, of Koltay Façades, discusses the engineering challenges faced by the construction of the Opus Project in Dubai, UAE and the revolutionary façade technology that was employed to make it such a success.

50 ASEAN glass fibre demand

18 Batch

Raw material news and views.

Yogender Malik looks at how the development of the glass fibre industry in ASEAN is now gathering pace as growing economies throw up a wealth of new product uses.

22 Special Reports

58 Façade development

China processed glass; Vietnam coated glass.

30 Comment & Analysis

Vicente Montes-Amoros of CDC Inc. discusses some of the issues faced with modern building facades and claddings and how they can result in reflectivity and environmental issues for the immediate surroundings.

Egyptian flat glass feels the heat.

44 Your favourite magazine is now available at the App Store…

50

Anaylsis 62 In Focus

download today to see your first sample issue!

Supply and demand in solar glass markets.

Asian Glass: now for mobiles, ipads and androids

Analysis and insight into Philippines.

64 Window

68 Refractory Zone

News and reports on bricks and monolithics.

4

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AG16-5

OFFICIAL MAGAZIN

GLASSTECH ASIA E

24-26 NOVEMBER VIETNAM

wo years after the purchase of the US plant, Fuyao Glass America has -and is continuing to undergo important transformation. Thanks to considerable investments, the plant has new Inside: equipment and important facilities that will be Coatings and faca des SE Asian packag ing markets during an Open House this October.

Coated glass in Vietnam Glass fibre expans ion Fuyao Glass America’s plant in Moraine has taken a PLUS! news, views, ana lysis and much, muc dramatic transformation in the past two years thanks to half h more! a billion dollars of global investment that will allow it to create the glass for one in four cars on North American roads.

People familiar with the history of the plant will be shocked when the company hosts an open house on 7 October.

New equipment will cover 1.8 million square feet of the facility. A quarter-mile skyway will be overhead. A new public restaurant will be operating just outside. Most importantly, more than 1,500 employees and 800 to 1,000 contractors, vendors, suppliers and partners will be working three shifts, five days a week, shipping more than 250,000 units of glass monthly.

Invited guests will be able to see for themselves the results of a sustained monthly capital investment of up to USD 30 million in the world’s largest automotive glass production site.

What visitors see in October will be just the start. Over the next three years, Fuyao will launch 50 new projects – products for customers or business moved overseas to Moraine from China.

“As we sit here today, we have parts that a year ago were being produced in China being shipped to North American carmakers that today are being produced here in Dayton, Ohio,” Gauthier said.

Fuyao has so far invested USD 700 million in two facilities – each more than 50 years old – in Ohio and Illinois.

If the auto market continues to offer even slow growth, the plant between Kettering Boulevard and Ohio 741 will employ more than 2,000 workers, Gauthier said. The operation has hired about 100 workers per month for the past year and a half.

“We’re still hiring anywhere from 30 to 40 per week or so,” Gauthier said. A group of 80 employees started 20 June.

When fully operational, the plant will supply 25 per cent of all North American automotive glass.

The plant once was a General Motors vehicle assembly operation; it was not designed for heat-generating glass equipment, such as furnaces and heat-treating equipment. When fully operational, there will be 20 electrically powered furnaces on the plant floor.

Fuyao has invested millions on plant ventilation and cooling and has cut seven openings in the plant’s west wall in an effort to promote air flow, Burrow said.

“There’s a lot of heat that’s generated in this facility that needs to be removed,” Gauthier said.

The business also has spent at least USD 2 million on personal protective equipment – shoes, eye-wear, aprons, gloves and more – for workers. In early May, a group of Fuyao Glass America workers filed a formal written complaint with the US Occupational Safety and Health Administration, alleging a number of unsafe working conditions at the plant.

Among the complaints: Workers said they were told not to wear protective gloves when handling glass, leaving their hands vulnerable to cuts.

But Gauthier and Burrows say workers have always been told to wear gloves. Some 70,000 pairs of gloves have been purchased since operations slowly began in the summer of 2014.

“Maybe there was a mis-translation,” Gauthier said. “I don’t know. But I can tell you what our policy is, and we’ve re-enforced that policy.”

A clear sign that any unfounded fears about Fuyao’s entry into the US were unfounded.

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HEADLINE NEWS ASIA Piramal continues expansion programme Sri Lanka Container glass producer, Piramal Glass Ceylon, the lone container glass producer in Sri Lanka is undergoing an expansion and modernization exercise at its Sri Lankan manufacturing facility.

Currently the re-aligning of furnace with an expansion of capacity to 300 MT per day, refurbishment and repair work on downstream facility is in progress.

The company is investing Rs 3 billion for this modernization and expansion exercise.

For the first quarter of current financial year the company achieved a total revenue of Rs 1,656 Million, a growth of 11% over the same period in 2015.

The export sale at Rs. 338 million as against Rs. 290 million of the previous year, increased by 16%.

The figure could have been higher but the company had to curtail exports in order to meet the domestic market requirements.

The company mainly concentrated on the high value niche exports.

It concentration towards building stocks in preparation for the closure of the factory for expansion. The strategy was to build in-house manufactured stocks for proprietary bottles and to import generic bottles. In fact, a substantial portion of the domestic sale was met through trading. The company’s objective was to ensure that the customer requirement would be catered with the least disruption during the maintenance and shutdown period. The major imports were done from its parent company Piramal Glass Limited, India.

According to Sanjay Tiwari CEO, Managing Director of Piramal Glass Ceylon, “We would be back in operation by end of the 2nd Quarter with enhanced capacity & are confident in giving our customers a better choice of bottles in more exciting designs & shapes.”

Manufacturing toughened glass for automobiles and

windshields has four plants located at Bawal – Haryana, Roorkee – Uttarakhand (North), Chennai – Tamil Nadu (South) and Taloja - Maharashtra (West) and three sub-assembly units cum warehouses at Halol – Gujarat, Pune – Maharashtra (West) and Bangalore – Karnataka (South).

The plants and sub - assemblies are strategically located in proximity of India’s automotive glass manufacturing hubs and produce a complete range of automotive glasses.

The OEM segment continues to be the prime driver of Asahi India’s automotive glass business with the company having a dominant position in Indian car glass market. The company claims to have a market share of more than 76.57 % in the domestic passenger car glass market. According to Asahi Glass India, “ Our strong relationships with majority of leading OEMs in the domestic market that have

been built over the years through strong performance in terms of quality, cost, delivery, and development (QCDD) of product will continue to drive key business growth for the company”.

According to Asahi India’s CEO and MD, Sanjay Labroo, “ Auto SBU with revenue increasing 11.67% from ` 1208.07 crores in FY 2014-15 to ` 1349.10 crores in FY 2015-16 and segment profits by 14.58% from ` 161.48 crores in FY 2014-15 to ` 185.02 crores in FY 2015-16.”

He further says, “ The auto industry is highly upbeat with renewed consumer confidence and slew of new high quality product launches. However, this growth will be skewed towards a few winners and involve high levels of volatility and complexity. Such an environment suits Asahi India well due to our extreme customer sensitivity and our readiness to equip ourselves for such positive ambiguity.”

Viridian opens “state of the art” processing plant New Zealand Manufacturing innovator Viridian Glass has officially opened a new state-of-the-art processing plant in Highbrook, Auckland.

The multimillion dollar investment represents a significant commitment to the New Zealand market.

The purpose-built facility has amalgamated the company’s Auckland operations under one roof. The move involved expanding Viridian’s existing Highbrook footprint by 160% to accommodate the Mt Wellington and Auckland Airport operations, and now totals over 17,000sqm.

Viridian Glass New Zealand chief executive Lars BlochKristensen says: “The new facility at Highbrook has united our three

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asianglass AG 16-5

Auckland glass processing sites to satisfy an ever-increasing demand for bespoke glass solutions.

This significant investment has created a semiautomatic factory with flexibility integrated into its design, allowing us to adjust production swiftly to meet customer demands.”

Mr Bloch-Kristensen says that the future of glass products is bespoke design. “New Zealanders don’t want cookie-cutter building designs, so every house and building is different and requires a tailored glass solution. Our new glass processing plant’s in-built flexibility enables Viridian Glass to introduce new and innovative forms of glass solutions to the residential and commercial

sectors efficiently.

“We are just beginning to see product solutions with glass as a key component for places where people work, live and play.

Technology will be integrated into today’s glass products in ways we can’t imagine now and we will see the boundaries for traditional processing continually challenged.”

Viridian Glass is owned by CSR Building Products, which includes brands such as Bradford Insulation, Monier Bricks & Roofing, Potter Interior Systems, AFS Walling Solutions, and Hebel Autoclaved Aerated Concrete.

“As part of CSR’s building and construction products family, we can collaborate

with our partners to create complete building systems. This relationship connects us to the whole building and construction industry; we’re not isolated,” says Mr Bloch-Kristensen.

Viridian Glass celebrated the factory opening with more than 200 guests at its Highbrook site including Minister for Economic Development Steven Joyce, and architects, builders, engineers, glass industry specialists and local government officials.

Guests were treated to a tour of the new plant’s processing capabilities and, with help from Minister Joyce, a demonstration of Viridian Glass’s new Sentryglas® interlayer performing within one of its balustrade systems.

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SAG wins major orders Saudi Arabia Saudi American Glass [SAG], a subsidiary of Dubai Investments PJSC and a leading processor of architectural high-performance flat glass across the Middle East, has signed new projects valued over SR 20 million in the Kingdom of Saudi Arabia.

The new projects awarded to SAG include Bayat Plaza in Jeddah [SR 9.5 million], Rashid Mall in Abha [SR 3.3 million], Riyadh Park Mall in Riyadh [SR 1.8 million], Spimaco HQ building in Riyadh [SR 2.6 million], Movenpick Hotel in Riyadh [SR 1.6 million] and Marriott Hotel in Riyadh [SR 1.1 million].

Over 100,000 square metres of K-Lite high performance glass from Saudi American Glass in various colours are being used in the projects. The K-Lite glass offers high strength resistance against stress and wind flex, optimum performance in terms of thermal insulation and also offers added protection in the case of breakage.

The company’s strong project portfolio comes in the wake of rampant construction activity in the Kingdom. According to industry reports, Saudi Arabia’s projects market in 2016 boasts $500 billion worth of schemes in the pre-execution phase

Dumping duty on glass fibre imports China/India The Finance Ministry has imposed anti-dumping duty on certain 'glass fibre' imports from China.

This anti-dumping duty -- which will be a percentage of costinsurance-freight (CIF) value of imports -- will be applicable for five years.

The percentage of antidumping duty levied ranged from 20.46 per cent to 47.15 per cent ( percentage of CIF value) depending on the producer.

Owens-Corning (India) Pvt Ltd and Owens Corning Industries (India) Pvt had filed the petition seeking continuation of antidumping duty on certain 'glass fibre' imports from China.

The Designated Authority in the commerce ministry recommended in its final findings continuation of anti dumping duty on certain 'glass fibre' imports from China.

For the purpose of this levy, glass fibre would include glass

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roving, direct rovings, glass chopped strands and glass chopped strand marts.

It however specifically excludes glass wool, fibre glass wool, fibre glass insulation in wool form, glass yarn, glass woven fabrics, glass fibre fabric, glass woven rovings, chopped strands meant for thermoplastic applications, micro glass fibre used in battery separator and cemfil (alkali resistant glass fibre for concrete reinforcement).

The Centre had on July 13 last year extended the validity of antidumping duty to July 13 this year

News, views and analysis

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spanning the power and water, transport, hydrocarbons and construction sectors.

Rizwanullah Khan, Executive President of SAG, said: “In the midst of emerging opportunities in Saudi Arabian construction market, which is witnessing phenomenal growth, Saudi American Glass is reaffirming its growing market domination with new projects.

The impressive project portfolio speaks volumes about Saudi American Glass’ track record in the country and its capabilities to meet the stringent technical specifications required for the state-of-the-art iconic projects

across the Kingdom. One of the salient features of SAG’s growth in the market is the everincreasing demand for its K-Lite high performance glass for the various projects.”

With K-Lite solar control and low emissivity glasses, the radiant heat from the Sun and conducted heat from warm air are controlled, so that it does not put excessive pressure on the air conditioning systems leading to optimum efficiency. These high-performance glasses have been used in university projects across Dammam, Najran, Jizan, Madinah, Hail, Tabuk and Qassim.

Automotive glass tie-up Australia Phoenix Automotive Glass and Alpha Bus have joined forces to offer the largest range of bus and coach and automotive glass in Australia Phoenix Automotive Glass and Alpha Bus Glass have formed Australasian Bus and Coach Glass to bring together their combined industry experience and commitment to service.

At the same time, the companies have been appointed the nation-wide bus and coach services contact point for Australia’s largest automotive glass distributor, National Auto Glass Supplies (NAGS).

Phoenix has been operating in the commercial automotive glass field for 13 years, with one of its directors, Jeff Perrie, having been involved for 30 years working for O’Briens, PGI and NAGS during this time Perrie is an expert in the bus, coach, and speciality glass side of the business, from manufacturing to installation.

Phoenix is currently contracted

to Brisbane City Council to service its bus fleet, Linfox (QLD), Australia Post (QLD) as well as being preferred supplier and installer to a number of bus and coach operators around southeast Queensland and NSW. The company is now embarking on expanding its business through wholesaling bus and coach products, guaranteeing competitive pricing and fast, reliable service.

Alpha Bus Glass has specialised in the supply and fitment of bus and coach glass for 28 years. Alan and Lorraine Bamford are directors and Alan has nearly 40 years’ experience in the automotive glass industry.

Through its wholesale division, the company supplies bus and coach glass to all states of Australia and now to New Zealand.

Together, the companies offer the largest range of bus, coach, and automotive glass in Australia with more than 10,000 glasses located throughout Australia and New Zealand.

AG 16-5 asianglass

9

News

Firzobad escapes pollution order India In what is a big relief for Firozabad glass industry, officials of Taj Trapezium Zone (TTZ) Authority have concluded that the pollution caused by the industry isn't reaching the Taj Mahal.

Officials of the authority held a meeting in September where a recent study done by the National Environmental Engineering Research Institute (NEERI) to gauge pollution level in Firozabad was discussed.

It was finally concluded that fumes from Firozabad's glass industry are not polluting the 17th century monument.

The report will now be sent to the Union ministry for environment and forest seeking further instructions. Source said there was a strong possibility that Firozabad might be taken out of the TTZ's purview in future as industrial activity here does not affect the world heritage monument. In such a scenario, permission for expanding the industry here might also be

granted, they added.

The study by NEERI to gauge pollution level in Firozabad revealed that the levels of harmful PM10 and PM2.5 have exceeded the minimum level by double on a daily basis while nitrogen dioxide had crossed the basic level by more than two and a half times. The report, however, also added that the pollutants did not reach the vicinity of the monument or impacted it directly. The aforementioned chemicals are said to be present in the region due to the bustling glass and bangle industry in the area.

The study was initiated after a group of industrialists raised the issue of a ban by the TTZ Authority on starting any new glass unit in the district. The industrialists wanted more supply of natural gas for their units.

The study was conducted at three places in the city to note down the levels of PM10 and

its sources. It was revealed that at Raja Ka Taal, which has the majority of glass factories, the contribution of glass industries is 40%, burning of waste (21%) and DG set emission was at 17% for PM10, while at Tilak Nagar, road dust amounted to 33%, followed by domestic burning (25%), and glass industries (10%). At DIC, burning of garbage amounted to 49%, road dust was at 15% and glass industry amounted to 12%.

The overall source contribution of glass industries to PM10 is found to be 20% on an average, the study stated.

As the study stated that smoke from diesel-run generators and vehicles are having a greater impact on the city, divisional commissioner Chandrakant, who is also chairman of TTZ Authority, has directed the UP Pollution Control Board and other departments to prepare short as well as long term plans to curtail pollution levels not only in Firozabad, but also in Agra

Kibing to increase ASEAN investment Malaysia China’s largest glass manufacturer is planning to raise its investment in Malaysia by 100% to US$400mil (RM1.6bil) and to set up its overseas headquarters in Kuala Lumpur, group chairman Ge Wenyao told visiting Malaysian minister Datuk Seri Ong Ka Chuan.

Ge said this in Kibing headquarters after showing Ong, Second Minister of International Trade and Industry (MITI), Kibing’s huge factory with high tech production lines and port facilities on this small island at the southeastern part of China.

Kibing has already committed US$200mil (RM815mil) for its float glass production in Negri Sembilan and in the future, plans to invest an additional US$200mil to venture into higher value glass-making, such as intelligent glass, mirrors and, furniture and construction glass, in the state.

“We also want to set up our overseas headquarters in Malaysia,” said Ge, the leader of

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hai Stock Exchangethis Shang­ listed company.

“The reasons are your government and people are very friendly to China, and there are many local Chinese who are multilingual,” he said.

“These people will help us to go global.”

He added that his group, which also conducts research and deve­lopment in high quality glass and has diversified into lopment, was property deve­ responding to China’s go global strategy under the government’s belt road initiative when it made the decision to come to Malaysia in 2014.

Thanking Ge for Kibing’s investment and plans, Ong said: “Your presence in Malaysia is important to us.

“Kibing will help attract other downstream players, which need to use glass as raw material, to come to Seremban.

“Xerox printer has come to China because of Kibing.

“It will form an important ecosystem for the glass industry,” he added.

Other glass making companies are visiting Kibing in Negri Sembi­ lan with a view to set up factories near Kibing Malaysia, said Kibing’s Malaysian managing director Lim Swee Ee. Pledging to give whatever support the Government could and listing out all favourable factors for investors in Malaysia, Ong said: “China can use Malaysia as a gateway to Asean and global markets because we teral and have signed many bila­ multi-lateral trade agreements with many nations and regions.”

In the long term, Malaysia and China should cooperate to open up the global market, he said at the meeting with Ge, which was attended by MITI China officials and Malaysian businessmen led by Datuk Low Kian Chuan – the secretary-general of the Associated Chinese Chambers and Industry of Malaysia.

NEWS IN BRIEF Japan-based Asahi Glass (AGC), a global glass manufacturing company, has revealed that AGC Automotive Europe will establish its first automotive glass factory in Africa in Kenitra, Morocco.

AGC Automotive Group recently reached an agreement with Induver, a leading glass processing company in Casablanca, in order to coestablish the first unit of the AGC Group in North Africa, according to sources. The factory’s construction is underway and is expected to begin production in 2019, it said. The AGC Group will create approximately 600 new jobs in Morocco and aims to be the hub of glass production in Africa. The factory will become the 23rd global site producing for Asahi Glass, which provides automotive glass for around 1.1 million vehicles annually.

NEWS IN BRIEF To support the growing Indian glass fibre market, Owens Corning plans to invest USD 110m to expand capacity at its plant in Taloja / India.

The money will go towards an 80,000 t/y glass melter due to start up in early 2018. The new unit complements the site’s existing 50,000 t/y oven. Owens Corning purports to be the leading glass fibre producer in India – a country whose glass fibre market has been growing at double digits over the past decade, and where capacity utilisation has been very high for the past three years. Commenting on the investment, Marcio Sandri, vice president and managing director Glass Reinforcements, said the added capacity “positions Owens Corning well to continue to benefit from a low-delivered cost platform while supporting growth in this region and worldwide.”

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WHENEVER,

INSULATE

WHEREVER ,

AND

FENZI

IS THERE .

.

BETTER TO LIVE BETTER.

Our own wellbeing and respect for planet Earth demand that we thermally insulate the environments in which we live to the best of our ability. This is true all around the world, in the scorching heat and the most bitter cold. Recently we have seen an intensification in climatic extremes, leading to increasingly challenging conditions for insulating glass.

Technology responded with low-E glass, triple glazing, and warm edge spacers. In this context, sealants – indispensable component of the insulating system – are subjected to ever greater forms of stress, which is why they have evolved in heretofore unimaginable ways. The sealants in Fenzi’s Thiover and Poliver lines make it possible to create perfectly sealed IG units that last indefinitely, and with the added benefit of practicality and convenience, thanks to its widespread network of manufacturing and distribution centers around the world. The Fenzi group – with Alu-pro and Rolltech, through the Glass Alliance network – offers global distribution of all the necessary ingredients for the production of insulating glass, starting with the most extensive range of warm edge spacers in existence.

I.G. SEALANTS

LEADER IN CHEMICALS FOR THE FLAT GLASS PROCESSING INDUSTRY.

www.fenzigroup.com Fenzi S.p.A. - Via Trieste 13/15 - Zona Industriale - 20067 Tribiano (Milano) Italy Phone +39 02 90622.1 r.a. - Fax +39 02 90631216

News

Global View

Avancis and Sunpartner in BIPV deal EUROPE German PV module manufacturer Avancis has signed a strategic partnership with French solar tech company Sunpartner Technologies to incorporate its CIGS thin-film PV cells into Sunpartner’s energy generating glass.

Although building-integrated photovoltaics (BIPV) has not grown at the sharp trajectory that it was expected to, there are still plenty of companies making inroads into the market. Avancis is one of the company’s holding the torch for the BIPV industry, and a new strategic partnership

with French solar tech company Sunpartner Technologies could be a key to greater market exposure.

The partnership is a collaboration between the two firms to create the next level of energy producing glass. Avancis’ CIGS thin-film technology has been blended with Sunpartner’s experience in energy generating glass to create the semitransparent WYSIPS DesignGlass, which can be used in construction, especially in smart cities.

The two companies’ offering

O-I to undergo “shift” in direction UNITED STATES Perrysburg-based Owens-Illinois Inc. is undergoing an internal cultural and operational shift in practices under new leadership.

“There is a lot we can do to really update how we function as a company to understand the possibilities of the future,” Andres Lopez, O-I chief executive officer, said in late September in New York during his 35-minute presentation to investors and Wall Street analysts at Credit Suisse Group’s 2016 Basic Materials Conference.

But those changes, including training more than 250 people and assembling them into teams to better meet the needs of O-I’s 30 largest customers, are paying off.

The glass bottle and packaging maker said that, with the third quarter nearly over, it looks certain that adjusted quarterly earnings will come in between 65 and 70 cents a share, much improved over 57 cents a year ago. And O-I also remains on track to meet earlier full-year earnings estimates of $2.25 to $2.35 a share.

Mr. Lopez, who became CEO 11 months ago, has been all about changes. In March, he said O-I probably needed to change its corporate culture and correct some issues with legacy products that have hurt performance.

On Thursday, he said his executive leadership team “is

12

asianglass AG 16-5

comes in a variety of different shapes and styles and has been designed to integrate aesthetically into the structural design of the building. The pre-series is due to be available by the end of the year.

“Sunpartner Technologies has an extensive experience in energy generating glass,” commented Avancis CEO Franz Karg. “After two years of intense collaboration, we are pleased to cooperate with an innovative partner with whom we complete decisively our product portfolio for solar facades on a

new technological base. Thus, in addition to our existing colored architects’ panels, we will be able to provide basic products for semi-transparent surfaces such as insulating facades, double facades and skylights, too.”

The news comes a week after Avancis launched its new architectural PV module, the PowerMax Skala. The modules, which are available in different colors and sizes, can be used for aesthetical designs of buildings, and can be used as alternative designs to traditional facades.

NSG to partner Solaria for BIPV WORLD

highly committed to transforming O-I” but added that the commitment also is being seen among employees at lower levels of the global company.

But even though change is taking hold, it will take time, he explained.

O-I, Mr. Lopez said, initially was designed to serve very large customers and provide large profit margins. But in recent times, the glass-packaging industry has had its markets become more fragmented or move to premium glass products.

“Ours was a capricious approach that can’t respond effectively anymore. We needed a new approach to understand the customer’s requirement and deliver in that line,” he said.

Going forward, O-I will need to be more flexible to respond to rapidly-changing market segments, the CEO said.

O-I, Mr. Lopez noted last March, already has many smaller customers selling premium products requiring specialty glass packaging for craft brews, premium products, and superpremium products. That market already represents 40 percent of the North American market.

“Flexibility is going to be critical. ...It takes a more articulated approach. You have to be a lot more nimble to align and see how to serve customers,” Mr. Lopez said.

NSG Group, owner of the Pilkington brand, is entering into a collaborative agreement with photovoltaic specialist Solaria to manufacture and produce transparent Building Integrated Photovoltaic (BIPV) solutions, the companies have announced.

NSG will incorporate Solaria’s PowerView technologies as part of an original equipment manufacturer relationship.

“NSG Group believes in making a difference to our world through glass technology and our collaboration with Solaria underscores our commitment to sustainability,” says Sing Koo, value-added product manager of NSG Group Architectural Glass Europe. “We have expanded our product line to include BIPV powered-by-Solaria because we believe that BIPV will be the next big solar technology to be adopted by the mainstream as the building and construction industries strive to meet global mandates.”

The first powered-by-Solaria Pilkington-branded products “include architectural glass with unified vision, effective daylighting, glare control, improved thermal performance and energy generation,” according to the company. The BIPV technology will be incorporated into Pilkington’s insulating glass units, and the companies plan to work together in the future on products such as fritted and spandrel glass.

“Solaria is honored to collaborate with NSG Group to manufacture an architectural solar product, powered by Solaria’s proven PV technology,” says Udi Paret, general manager of building solutions at Solaria.

“Until now, BIPV has struggled to gain momentum due to the lack of a proven supply chain in place.

Combining Pilkington’s depth and breadth in the glass industry with Solaria’s transformative PV technology, the industry now has a way to confidently deploy BIPV and realize its benefits on a large scale.”

NSG plans to launch the first products in Europe and expand to other markets in the future.

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News

GlassStress course unveiled for Talinn ESTONIA An intensive two-day course containing lectures, equipment demonstrations, practical stress measurements and informal discussions has been planned by GlassStress Ltd for May 2017.

The intended audience is: Engineers, technologists and scientists from glass industry and glass research laboratories who wish to acquire contemporary photoelastic methods for residual stress measurement in glass products of any shape. The participants may bring to Summer School samples they want to measure stresses in.

In terms of content: Basic elasticity, basic photoelasticity, integrated photoelasticity, stress field tomography, scattered light photoelasticity, automatic polariscope AP-07 for residual stress measurement in glass

articles of complicated shape, scattered light polariscope SCALP for thickness stress measurement in glass panels, immersion technique, software for stress calculation using measurement data, practical measurement of residual stress in tempered and annealed drinking glasses, bottles, CRT bulb panels and neck tubes, optical fibre performs, architectural glass panels and automotive glazing, etc.

Director of the Summer School is Dr. Hillar Aben, Leading Research Scientist of the Laboratory of Photoelasticity of the Institute of Cybernetics at Tallinn University of Technology and Scientific Director of GlasStress Ltd. H. Aben has been involved in developing modern photoelastic techniques for glass stress measurement for more than 40 years. He has

published on this topic about 150 papers and two books: “Integrated Photoelasticity” (McGraw-Hill, New York, 1979) and “Photoelasticity of Glass” (coauthor C. Guillemet, Springer-Verlag, Berlin, 1993).

H. Aben has been the organizer and main lecturer of the 16 previous Tallinn Glass Stress Summer Schools. Under his leadership polariscopes, supplied with sophisticated software, are being manufactured in GlasStress Ltd. and applied in many glass companies and research laboratories worldwide for residual stress measurement in various glass products.

PhD Johan Anton is Head of the Laboratory of Photoelasticity of the Institute of Cybernetics at Tallinn University of Technology and also CEO of Glasstress Ltd. He is the author of the automatic

stress measurement method in axisymmetric glass articles.

He is chief constructor of the polariscopes AP and SCALP. He has 16 years experience in elaborating intelligent software for glass stress measurement with integrated photoelasticity and with the scattered light method, Course Fee is 600 EUR, for students 300 EUR. Fee includes printed quality copy of the Summer School lectures slides, a CD ROM with the compendium “Photoelasticity of Glass”, manuals of glass stress measurement polariscopes, luncheon, beverage breaks, Summer School Dinner, and guided tour to the ancient City Centre.

For more information contact http://www. glasstress.com.

Beatson improves flexibility UNITED KINGDOM UK based glass packaging manufacturer Beatson Clark has installed a new twin palletiser at its amber glass lines to boost production and flexibility.

The glass manufacturer has invested £720,000 in a new Zecchetti conveyor line and palletiser, which are designed for both bulk and small pack operations.

US based Zecchetti

is engaged in providing palletizers, depalletizers and conveying systems for its customers. It employs 110 people.

Beatson Clark project management head Graham Lax said: “One of the amber lines previously packed only shrink-wrapped modular packs, which limited its use to pharmaceutical products in this format.

Shahe Zhuangda unveils plan TANZANIA Shahe Zhuangda Building Materials Ltd, one of China’s foremost construction material suppliers, has revealed its hand in East Africa with the continued development of a site for glass production.

At present, the factory established in Tanzania has completed the infrastructure construction of water, electricity and gas. The equipment installation and debugging is on going and the factory will bring into operation soon.

The Tanzania government provides much convince such

14

asianglass AG 16-5

as duty-free policies for 3 years.

The annual output value of this new factory in the next few years will exceed USD20 million and provide more jobs opportunities for about 300 people.

This project of Zhuangda Building Materials provides a good demonstration for the “going out” of Shahe glass.

Another 3 or 4 glass enterprises in processing industry wans to follow the step of Zhuangda Company. Indeed, there are 7 or 8 enterprises visiting Indonesia and Russia to expand the overseas market.

“But the upgraded line gives Beatson Clark the flexibility to supply pharmaceutical containers in either bulk or small packs and will be able to handle other containers such as beer bottles too.”

Beaston Clark said that the new conveyor line and palletiser provide better environmental performance andan improved health and safety design.

Beaston Clark marketing

manager Charlotte Taylor said: “After manufacturing medicine bottles and jars for 260 years, the pharmaceutical sector remains an important market for us and increasing the packaging options we offer in this area will be beneficial for our customers.

“In addition, this investment will give us more flexibility for the growing craft brewing sector.”

Float strengths combine GERMANY German Floatglass Technology GmbH and Nikolaus Sorg GmbH & Co.KG have entered a strategic agreement to work closely together in the fields of automobile, solar and architectural glass.

The goal of the agreement is to combine the strengths of SORG in the furnace area with GFT for the tin bath. “The parties will be able to offer the hot end package for float glass lines up 1000 tons per day. Customers have the advantage of getting

best in class technologies from one contractual party for this core area” said Sorg.

“With this cooperation, we are actively following the customer trend to buy larger project packages and reduce interfaces.

Our Customers further benefit from having access to the state of the art in melting and forming technology which is setting standards in glass quality, low energy consumption and high production yields” said the companies involved.

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News

People and Places

glasspex and glasspro to be held at India Expo Mart, Greater Noida next year India Companies in glass machine manufacturing, the entire glass industry and the glazing trade can register as of now for both trade shows. The fifth edition of glasspex INDIA will be staged from 23 – 25 February 2017 at India Expo Mart, Greater Noida.

Conceptualized on the lines of its flagship show, glasstec Düsseldorf, glasspex INDIA will showcase the entire array of glass ranging from production to processing and application offering trade visitors new technological innovations, progressive processing techniques and latest trends in glass applications. glasspex INDIA has established itself as a platform for the exchange of themes, contact making and business deals on the Indian market.

Exhibitors

from 13 countries (India, Germany, France, England, Italy, Singapore, China, Taiwan, Czech Republic, Austria, Iran, Finland and the USA) came to glasspex India in 2015 and underlined their satisfaction with the quality of the 3,222 visitors.

The new event glasspro INDIA - International Exhibition for Flatglass Processing and Products - will open its shutters at the same time in Delhi, and showcase the latest and finest trends and innovation in flat and processed glass products and applications. Also on display will be the latest glass processing solutions, tools, auxiliary products and services.

“The motivation behind the launch of the sister event glasspro INDIA is the endeavour to provide a platform dedicated

to strengthen the flat glass segment. The Build Fair Alliance,

"Flat glass and its applications are majorly used in the construction sector, which represents the dominant end user market." with its concept of providing integrated building solutions,

is the perfect complement for the exhibitor and visitor profiles of glasspro INDIA” underlines Birgit Horn, Director of glasstec at Messe Düsseldorf.

Build Fair Alliance is an alliance between global exhibition leaders Messe Düsseldorf India, Nürnberg Messe India, Messe Frankfurt, FSAI and ISHRAE to colocate their events under one roof to provide one stop Integrated Building Solutions to stakeholders of the Indian construction industry.

For exhibitor registration documents as well as further information on glasspex INDIA and glasspro INDIA contact Messe Düsseldorf:: Mrs Gabriele Schreiber, SchreiberG@ messe-duesseldorf.de, Tel: +49 (0) 211. 45 60-77 62

Dalmia Refractories appoints new Director India Dalmia Bharat Group has announced the appointment of Ingo Gruber as Executive Director, Manufacturing and Technology for its Refractories business. In this role, he will be responsible for four manufacturing plants in India, one in China and the India Technology Center.

Ingo joins Dalmia Bharat after spending 25 years in international refractor y markets and has rich exper tise in domains of manufacturing, technology and process improvement. He also brings extensive experience in manufacturing and technology integration strategies during mergers and acquisitions.

Prior to this, Ingo held various leadership roles at RHI and its group companies across Europe.

Commenting on the appointment, Sameer Nagpal, CEO-Refractories, Dalmia Bharat Group said, "Ingo

16

asianglass AG 16-5

comes from Europe, the ner ve center of refractor y technology and brings the latest in technology and manufacturing that the industr y has to offer. This deepens our solution capabilities and helps accelerate our plan to become a preferred par tner of our customers."

The Refractor y business of Dalmia Bharat Group comprises two specialty companies - OCL Refractories and Dalmia Refractories Limited. Established in 1954 as a unit of OCL India, OCL Refractories is a leading refractor y supplier to domestic and international steel plants.

Set up in 1959, Dalmia Refractories (previously Shri Nataraj Ceramics and Chemical Industries Ltd) is a pioneer in high alumina refractor y bricks for the Indian cement industr y.

The Group's Refractor y business has four

manufacturing plants in India, one in China, a Technology Center and sales representatives at strategic locations around the world.

The business provides a

wide range of refractor y products and ser vices to both ferrous and non-ferrous plants, including iron and steel, cement, glass, copper and hydrocarbons.

GANA seeks new EVP North America The Glass Association of North America is seeking to fill the position of executive vice president after Bill Yanek's departure. The EVP of GANA will serve and promote the interests of its members in the glass and glazing industry. Qualified candidates will be innovative and mission driven, bringing strong communication skills and the ability to build and establish strong business and industry partnerships, according to the association's release.

Reporting to the Board of Directors, this executive serves

as GANA’s staff leader. Internally, the executive will lead and manage the GANA headquarters team and GANA independent contractor consultants located throughout North America. Externally, the executive will be the face of GANA while serving the membership.

Established in 1994, with a current $1.2 million annual budget, GANA serves more than 300 members representing flat glass manufacturers, fabricators, glazing contractors and suppliers to the industry. For more information, contact the Association directly.

www.asianglass.com

News

People and Places MIT makes for glass fibre alliance China Under the support and guide from Ministry of Industry and Information Technology of the People’s Republic of China (MIIT), the development alliance for China’s fiberglass and composite materials was established by the sponsor of China National Materials Group Corporation (SINOMA) and 46 related upstream and downstream enterprises, colleges and scientific research institutes.

There was a founding conference in Beijing earlier this year, at which, “The ordinance of the work of China’s fiberglass and composite materials” was issued. In addition, another ordinance named “Articles of the alliance for China’s fiver glass and composite materials” was passed. Li Xinhua, the general manager of SINOMA, was elected as the general manager of the first council.

On behalf Xin Guobin,

the vice minister of MIIT, Lv Guixin claimed that fiberglass and composite materials were widely used in building materials industry. In recent years, they has developed rapidly and played a large leading role in this industry.

SINOMA and about 50 enterprises will work together to improve their competitiveness based on a collaborative innovation platform.

Lv Guixin set 4 goals and objectives for the alliance.

First, the alliance must optimize factor resources. Second, new pilot projects for new products needed to be organized and new applications to be promoted.

Third, it was necessary to promote new products’ access to the market by conforming to standard specifications. Fourth, the alliance needed to take the application of fiberglass and composite materials as the ultimate goal.

…and finally…

United Kingdom Our congratulations go to UKbased Marrose Abrasives who celebrated their 40th birthday at Glasstec in October. Formed in 1976 in Keighley, U.K, Marrose specialises in the manufacture of “Elastic” Abrasives with bond types of Rubber, Epoxy and PU.

The company’s products are used worldwide in the aerospace, engineering and glass sectors.

We tip our hat to father and son team Tony, John and Mark Day for hitting the milestone, and wish them all the best in grinding out another 40 years from here.

Batch BITC urges domestic product upgrades Botswana // Soda Ash The Botswana Investment and Trade Centre (BITC) has urged Botswana Ash (Botash) to derive maximum value from soda ash instead of expor ting the raw product to other countries.

Speaking at a full council meeting of Sowa Town recently, BITC market intelligence manager Tiroyaone Sirang said the countr y would derive both social and economic value from producing different goods from the soda ash.

Sirang said Sowa Town offers many potential investment oppor tunities that should be tapped on. “We can get maximum value from expor ting various products from soda ash. We expor t raw soda ash to other countries, which in 18

asianglass AG 16-5

return boost their economies.

Those countries would later expor t the soda ash they bought from Botswana into various finished goods,” he said. Sirang said through soda ash, Botash could be able to produce finished goods such as glass, soap and detergents, chemical and paper.

He said soda ash value added chain would make chromiumbased products and sodium silicate, which is well known due to its wide commercial and industrial application.

He said soda ash could also be used in swimming pool care, potassium chloride and salt packaging. Sirang said local companies, which produce these products, impor t salt from China to manufacture

them. He explained that the investment oppor tunities that can be brought by soda ash could be achieved by the introduction of manufacturing industries in the countr y.

When responding to the BITC presentation, the deputy mayor of Sowa Town Council Otsile Machona applauded BITC for coming up with ideas that can benefit the town and Botswana as a whole.

“The investment oppor tunities suggested by BITC need not be emphasised.

They would create the much needed jobs that the people of this countr y especially the youth need ver y much,” he said.

Machona asked if there are foreign investors who are

ready to par tner with Botash in order to unlock the various oppor tunities that can be maximised from soda ash.

Councillor Botho Ntirang also said the manufacturing of various products from soda ash can attract investors to Sowa Town who would create jobs for the community.

On a related development, Ntirang said spor ts tourism could also attract more tourists to the area and he pleaded with the powers that be to seriously evaluate the issue.

When responding to some of the questions posed by councillors, Sirang said BITC carried out a research, which showed that investors were ready to par tner with Botash. www.asianglass.com

Project3

6/10/16

13:04

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News

Batch Delegates call for action on China United States/China // Soda Ash Wyoming’s congressional delegation joined together in September in calling on the Obama Administration to use upcoming trade talks with China to address the soda ash “overcapacity issue,” which the lawmakers say has hurt the state’s ability to export its own soda ash production.

Wyoming is by far the top source and exporter of soda ash in the United States — producing an estimated 90 percent of the nation’s annual output— and it plays a key part of the state’s economy. And especially so in Sweetwater County — known as the “Soda Ash Capital of the World — where the Green River Formation holds the world’s single-largest deposit of trona, natural soda ash’s source mineral.

Wyoming’s all-Republican delegation — U.S. Senators Mike Enzi and John Barrasso and U.S. Representative Cynthia Lummis —sent a letter to the U.S. Secretary of Commerce Penny Pritzker and U.S. Trade Representative Michael Froman, urging them to address the soda ash issue at the 27th annual U.S.-China Joint Commission on Commerce and Trade meetings later this year.

“U.S. soda ash is the most competitive and environmentally-friendly in the world due to a unique natural deposit of the soda ash raw material trona located in Green River, Wyoming, from which the U.S. could supply world demand” for thousands of years, the delegation wrote.

“Roughly 55 percent of U.S. soda ash is exported, making soda ash America’s largest inorganic chemical export.”

The lawmakers said that years of rapid production capacity increases have transformed China from a “net importer of soda ash to the world’s largest soda ash producer.” As China’s economic growth has slowed in recent years, China has targeted export markets for its excess capacity of soda ash, which in turn harms U.S. soda ash producers. As the delegation

20

asianglass AG 16-5

pointed out in its letter, not only is this an important issue for the state, but even China’s own State Council has recognized that soda ash overcapacity in the country must be resolved.

According to the delegation’s letter, “China’s soda ash overcapacity is the culmination of nearly 30 years of industrial policies aimed at spurring soda ash production even in the face of diminished demand.”

"U.S. soda ash is the most competitive and environmentallyfriendly in the world" According to the Industrial Minerals Association–North America, soda ash — also known as sodium carbonate (Na2CO3) or common baking soda — is an alkali chemical used primarily in glass manufacturing, including the production of glass containers, fiberglass insulation, commercial building, and automotive industries. Soda ash also is used in baking; the manufacture of some detergents and paper products; and to purify air and soften water; and, as environmental concerns grow, demand for it is increasing for use in the removal of sulfur dioxide and hydrochloric acid from smokestack emissions.

The growth of China’s industry — which uses a chemical process to produce synthetic soda ash, as opposed to Wyoming producers, who refine soda ash from trona — was spurred by the country’s building boom over the last decade, which drove demand for the flat window glass used in the construction of everything from common houses to

Shanghai skyscrapers.

Federal Reserve Board uses soda ash as a national economic indicator and, according to the Wyoming Mining Association, the mineral is Wyoming’s top export product, being shipped to markets around the globe.

In 2015 alone, Wyoming mines — all of which are underground mines — produced over 17 million tons of trona and employed 2,483 people.

The U.S. Geological Survey in 1997 estimated the state’s total reserve of trona to be 127 billion tons, with 40 billion tons recoverable. The Wyoming Geological Survey estimates Wyoming mines have produced over 633.2 million tons of trona since 1949 and that, at the current rate of production, the state’s recoverable trona reserves will last 2,350 years.

The price of soda ash has more than doubled over the last 10 years, reaching $142 per short ton earlier this year. The total value of domestic natural soda ash produced in 2015 was estimated to be about $1.7 billion, with production of 11.7 million tons for the year.

The U.S. soda ash industry comprises four companies in Wyoming (operating five plants) and one company in California with one plant.

The American Natural Soda Ash Corporation (ANSAC) operates as the international sales, marketing and distribution arm for the three leading producers: Tronox Alkali Wyoming Corporation, Tata Chemicals North America (TCNA) and Ciner Resources Corporation. Together, these companies export approximately 4 million metric tons of natural soda ash annually, making ANSAC the largest exporter of natural soda ash in the world.

The companies’ mines and processing plants operate 24 hours per day, year-round, contributing over $300 million annually to the local economy.

Connecticut-based Tronoxentered the Wyoming scene in a big way in 2015, purchasing FMC Corporation’s Green River assets for

$1.64 billion.

Another major player in the market, Solvay Chemicals, has its U.S. soda ash headquarters in Green River, as well.

Many experts predict demand for soda ash from the developing world will show the most promise for growth heading into the future, while in the U.S. and Western Europe demand is flat to declining. According to TCNA, non-China global demand is going to outstrip supply until 2018. TCNA currently sells about 45 percent of its soda ash in the U.S. According to a report published recently by Grand View Research — a San Franciscobased market research and consulting company — global soda ash market size was $5.94 billion in 2015 (55.45 million tons) and it is expected to reach $25.37 billion (71.93 million tons) by 2024. The report said the growth of glass industry, particularly in the AsiaPacific and the Middle Eastern markets, is also expected to play a crucial role in the developing the global soda ash market.

Soda ash is an energy intensive industry — in Wyoming, most of the operations are powered by coal from nearby mines — and fluctuating energy prices are expected to affect market growth.

The Asia-Pacific market was the leading regional market in 2015, accounting for 54.2 percent of global demand.

Increasing industrialization in the emerging economies of China, India, Thailand, and Indonesia is expected to drive the regional market in the future, the report said. As the Wyoming delegation pointed out, the report found that China — due to established, as well as upcoming manufacturing facilities — is likely headed toward overproduction.

However, the report found that in terms of exports, the overall Asia-Pacific soda ash industry is anticipated to face tough competition from North America, due to the cost advantage enjoyed by U.S natural soda ash manufacturers.

www.asianglass.com

News

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Processed glass performance continues

SP

EC I

AL

RE PO

News

China In recent years, the processed glass industry has developed fast, with a glass system of categories, equipment and standards being established.

Deep processed glass is widely used in fields including construction, transportation, aeronautics and astronautics, electronic information, contributing greatly to the social and economic development. It supported the development of the whole glass industry obviously in the downturn of flat glass.

In 2015, there are over 520 scaled enterprises (the total number of enterprises was over 4,000 in the glass industry). The total assets of deep processing glass enterprises were RMB125.16 billion, exceeding that of flat glass enterprises. The industry achieved the profit of RMB6.26 billion and the total amount of deep processed glass reached 1.3 billion square meters. The growth rate of major processed glass was over 10% on average, which digested 45% of the original flat glass and promoting the quality improvement of original flat glass.

Output of insulated glass Year

Output m.m2

Growth (%)

2012

300

21

2013

340

13

2014

390

14.7

2015

430

10.2

Year

Output m.m2

Growth (%)

2011

71.20

38

2012

89.50

25.3

Safety glass When China was in the peak period of economic development and infrastructure construction, the flat glass industry was promoted to develop rapidly, especially the safety glass products, such as tempered glass and laminated glass.

2013

99.70

10.1

2014

117.50

19.3

2015

139.00

18

Insulated glass There are around 1,000 enterprises producing insulated glass, among which, around 100 enterprises are scaled. The industry has formed a complete industrial chain of research, production, equipment and supporting materials. The raised energy-saving standards in construction industry greatly promoted the development of energysaving insulated glass.

Export of processed glass during 2011-2015

Output of coated glass

Year

Volume

Value

mt

Growth (%)

USD b.

Growth (%)

2011

1.27

-

1.63

-

2012

1.38

8.75

1.86

5.36

Coated glass 2013 1.64 18 2.15 15.7 After years of development, there are many enterprises producing coated glass with various products and producing methods. Low-E production 2014 1.88 15.3 2.39 11.2 became the center and goal of deep processing manufacturers. According 2015H1 2.12 18.4 3.55 9.94 to preliminary statistics, there are around 20 large scale enterprises of Low-E production (both online and offline). By 2015, there had been over 150 offline production lines for coated glass with annual capacity of Output of household safety glass during 0.27 billion square meters, while there had been 10 Low-E glass online Year Output m.m2 Growth (%) production lines with annual capacity of more than 20 million square meters. The total capacity was around 0.3 billion square meters.

2012 81.30 5.17 Since 2010, the growth rate of Low-E glass was over 10% on average every year. In 2015, output of Low-E glass reached 139 2013 87.60 7.75 million square meters. However, the industry has been faced with 2014 92.80 5.9 underproduction and low capacity utilization and low price recently. At present, the production rate is under 70% and the capacity utilization 2015 94.70 2.05 rate is under 60% The prices of common products are down to RMB30-40 per square meter.

Output of safety glass for construction Glass machinery manufacturing Laminated glass Tempered glass Fire-resistant glass Glass machinery manufacturing continued to develop Year towards integration, professionalization and servitization, m.m2 Growth (%) m.m2 Growth (%) m.m2 Growth (%) showing a trend of modularization. Among which, high-end market, medium-end market and the low-end market take 60.23 23.9 254.80 11.7 0.83 up the market share of 30%, 40% and 30%, respectively, 2012 serving different consumers. By the end of 2015, there had 2013 64.30 6.7 294.32 15.5 1.06 28 been over 1,000 enterprises related to glass machinery manufacturing. Among which over 300 are professional 2014 71.05 10.4 328.06 11.4 1.40 32 large-scale enterprises, with the manufacturing capacity of flat glass machinery and glass processing machinery 2015 72.03 1.3 387.05 18 2.00 42.8 up to 100,000 sets. In 2014, the sales was RMB33.3 billion, increasing by 20% Amount of money Compared with compared to that of 2010.

(10000 dollars) last year Glass mirror Quantity (tons) The major types of processed glass Glass mirror being exported are safety glass and Quantity Value insulated glass, which are mainly used in 1,359 5,136 -10.6 -5.5 the construction industry and automobile Import industry. The growth rates of three types Export 209,271 7,910 7.3 -6.2 of technical glass under statistics were

22

asianglass AG 16-5

www.asianglass.com

News stable in the past few years and their volume exceeded that of flat glass.

The Glass Association actively encouraged processed glass export by promoting the adjustment of export tax rebate in our country. Before 2008, the percentage was 5%, in 2009 the percentage was adjusted to 11%, and after 2010 the percentage was 13%. However, viewing from the export product structure, the major export product is common processed glass with low additional value.

Reflecting success According to data of ASKCI, China’s imported glass mirror reached 1,359 tons in the first quarter of 2016 with the decrease of 10.6% in the same period of last year. Imports of glass mirror were 51.36 million dollars, which is 5.5% less than that of last year.

In the first quarter of 2016, China’s exported glass mirror was 209,271 tons, which enjoyed 7.3% rise in sales over the past year. Exports of glass mirror reached 79.1 million dollars, which decreased by 6.2%.

Float glass prices The average price for float glass was RMB1,226.27/t at the end of March 2016, up RMB15.32/t (1.27%) compared with the beginning of 2016.

In 2016Q1, the domestic float glass market shown overall upward trend.

The demand for flat glass in January showed sharp decline for the Chinese New Year holiday. Meanwhile, due to the poor performance of the glass market in 2015, downstream processing plants were shut down earlier than previous years and the stockpile quantity less than previous years.

After the end of the New Year holiday in February, the market recovery was slow and the majority of the processing plants started quite late. Soda ash

prices rose sharply due to production costs rise and the manufacturers intended strongly to increase prices. The industry conference in March boosted the market, but the price fell again after the conference in some areas due to the high inventory. Shahe market maintained the steady up trend by continuing slightly pull up.

By the end of March 2016 294 float lines were available and 221 lines in operation. The operating capacity was 146,030t/d, down 1.56% compared with last year and up 0.03% compared with last month.

During January-March, there were 5 newly fired and re-fired lines, 10 lines in cold repair and shutdown and 12 lines changing products.

Daily glass performance The main business revenue of glass products industry for 2015 was RMB231,433m., increasing by 4.98%. The total profit is RMB14,479m., decreasing by 0.13%. The profit margin of main business revenue is 6.26%, decreasing by 0.32%.

The growth rate of value added of glass products industry is 7.10% for 2015 (10.80% for 2014). That means that the blind expansion was stopped.

It is conducive to the structural adjustment of daily glass enterprises. Export value of daily glass for 2015 is USD 6,918m, Outputs of daily glassware and glass decreasing by container for 2016H1 1.99%. Import value is USD 488.402m., decreasing by 1.53%.

Glass projects in the pipeline

Province

Daily glassware (t)

Glass container (t)

China total

4,055,871

9,859,305

Beijing

-

4,606

Tianjin

-

30,543

Hebei

167,462

725,958

Shanxi

181,116

41,829

Inner Mongolia

70,463

36,300

Liaoning

9,451

42,885

Jilin

18,476

283,425

-

82,972

3,661

4,567

Jiangsu

240,963

181,560

Zhejiang

134,890

255,481

Anhui

436,502

82,011

Development phase

Total investment (RMBm)

Environmental impact assessment

100.00

Ruiben special glass industrial park

In construction

2,544.21

Low-E energy-saving glass line (2.3m.m2/y)

In construction

97.51

Project to be approved

128.28

Environmental impact assessment

10.00

Hunan glass production base

Project in designing

50.00

Special borosilicate glass line (EPC)

Project in designing

593.42

Project to be approved

268.00

Fujian

10,441

275,531

New glass products factory (east area) project

In construction

30.00

Jiangxi

21,837

49,044

New glass decorative materials (25,000m2/y)

In construction

12.00

Shandong

774,903

1,680,806

Construction preparation

69.40

Henan

471,774

946,592

Daily glass ware (1st phase, 20,000t/y))

In construction

110.00

Hubei

382,578

819,570

Tempered glass (0.2m.m2/y) and insulated glass (0.2m.m2/y) line

In construction

35.08

Hunan

154,100

209,657

Environmental impact assessment

605.19

Guangdong

285,267

305,534

Construction preparation

-

624,062

46.00

Chongqing

179,767

153,242

Environmental impact assessment

50.00

Sichuan

441,466

2,252,792

1st grade Water resistant pharmaceutical glass tubetype bottle (1.8b.pcs/y)

Feasibility study approved

755.64

Guizhou

47,762

100,895

New heat and sound insulation materials (1st phase, 0.12mt/y))

Environmental impact assessment

Yunnan

6,058

67,644

200.00

Shaanxi

8,107

496,829

Construction preparation

2,500.00

Gansu

-

46,124

In construction

150.00

Xinjiang

8,825

58,846

Project Low radiation on-line coated glass 3rd phase

EVA cloth (3,600t/y), transfer glass (0.18m.pcs/y) & UV transfer acrylic (0.18m.pcs/y) project Unsaturated polyester resin (6,000t/y), light board (0.36m.m2/y) & glass fiber reinforced plastic composite project

Handan Guanghua Special Glass Co. processing line

Construction glass processing base

Low radiation energy-saving glass line Hebei Institute of Tailings Comprehensive Utilization Engineering Tempered glass processing (1.2m.m2/y)

Special glass production base Sichuan Rongjing Institute of ceramic glass technology

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Heilongjiang Shanghai

Guangxi

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Low – E in Vietnam: a climatic necessity Viglacera Corp, arguably the most important glass producer in Vietnam, has now commissioned its low-E glass line supplied by Von Ardennes. In a series of interviews made available to Asian Glass, Viglacera, Von Ardenne and the Ministry of Construction, outline the past, present and future of this seminal project.

Le Van Toi, M.A. - Director of Department of Building Materials, Ministry of Construction: “Many building materials had to previously be imported such as cement, construction steel, construction glass, ceramic tiles, sanitary porcelain, etc. In recent years, the Vietnamese construction material industry has grown rapidly both in quantity and quality; quickly acquiring the techniques and advanced technology of modernized first world countries. Therefore, from a country that had to import most materials, Vietnam has not only produced enough domestic demand, but also exported the building materials mentioned above, particularly exporting a significant amount of glass that is used in solar batteries.

Vietnam lies completely in the tropical region, within 2 separate climate zones. According to the Köppen climate classification, the north is characterized as a monsoon tropical climate, and the south is characterized as Savanna tropical. At the same time, due to its location at the edge of the south-east of Asia, bordering the South China Sea (a part of the Pacific), it is directly affected by the monsoon climate, usually blowing in the region around lower latitudes.

Vietnam has a high temperature base. The year average temperature lies between 22ºC and 27ºC. Annually, it rains for about 100 days with an average precipitation from 1500 to 2000mm. The humidity is around 80%. There is about 1500 - 2000 hours of sunshine, and an annual average radiation of 100kcal/cm².

For the last 50 years, the average temperature has risen by about 0.5 - 0.7oC; the sea level has risen by about 20 cm. These changes have brought about increasingly fierce natural disasters, especially storms, floods and droughts.

Vietnam is considered to be one of the countries that is most strongly affected by climate change and rising sea levels.

According to published calculations and statistics by the World Bank, if the sea level rises by 1 meter, about 10% of the population will be directly affected, approximately 90% of the rice plantations in the Mekong River Delta (MRD) will become completely flooded, and 4.4% of the territory of Vietnam will be permanently flooded, which means about 20% of communes in the country and 9200 km of road will be wiped out...

Vietnam signed the Kyoto Protocol on December 3, 1998 that was ratified on September 25, 2002 to include the control of greenhouse gases.

In December 2015, Vietnam signed the Paris Agreement that was adopted at the 21st Conference of the Framework Convention of the United Nations on Climate Change (COP21) in Paris (France).

The participating countries agreed to curb the increase in global temperature by not exceeding 2oC compared to the temperature of

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the pre-industrial revolution (around 1850s). One noteworthy goal of COP21 is that from now until 2020, developed countries will mobilize at least $100 billion a year to help developing countries switch to using clean energy sources and to cope with climate change.

The government determines programs, prioritizes projects aimed at responding to climate change, such as the national target program to cope with climate change, building an expansion plan for the period of 2016-2025; the national science and technology program for climate change; the response to climate change program for large urban areas of Vietnam; the piloted commercial energy saving CEEP program by the Global Environment Fund through World Bank with the aim of encouraging the development of energy-saving services in a commercial nature, testing the project management project model and financial mechanisms to support the energy-saving activities; inventory and monitoring greenhouse gas emissions scheme and managing activities to minimize greenhouse gas emissions; the upgrade system scheme of public health care in line with the conditions of climate change and rising sea levels...

Low-e benefits This is the first energy-saving glass project in Vietnam that has coating technology, as well as modern soft coating technology in Southeast Asia, so it is being paid a lot of attention; Energy-saving glass is processed from flat glass with an ultra-thin coating on the surface that features low emissions and low thermal conductivity that minimizes heat transference between the inner and outer environments, thereby saving energy costs for air-conditioning systems that cool in the summer and heat in winter.

Therefore, the Project helps in the positive implementation of energy saving programs of the State; The energy-saving glass production by Viglacera will replace imported goods and promote export to the world, actively welcoming new integrations such as TPP and trade agreements.

Energy-saving glass production investment projects are a part of the building materials production investment projects such as Mineral resource saving, Energy-saving and becoming environmentally friendly.

These projects are defined in article 37 Chapter 5 of the Decree 24a of the Government of building materials management, issued on April 5, 2016.

These projects are prioritized for credit loans, supported with taxes such as land use tax for projects, value added tax, corporate income tax, import of equipment tax-free, etc.

With Viglacera’s Low-E glass manufacture project, investors have specifically supported the State with:

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RT RE PO AL EC I

SP - Low-interest preferential loans from the development bank; - Preferential corporate income tax, such as free tax for 4 years from profits, 50% reduction of the next 9 years with 10% in tax rates; - Support for interest rates on the first 4-year loan.

- Complete exemption of import duties for synchronous equipment used for technological lines; Vietnam’s flat glass production capabilities are huge. The existing capacity of the country is over 170 million m2 on standard terms (OST)/year. In the coming years, this figure will increase. Even TCT Viglacera has planned to invest 1 ultra-white glass factory with a capacity for stage 1 at about 32-35 million m2 OST and stage 2 at about 55 to 60 million m2 OST in Ba Ria Vung Tau. In addition, there are two other businesses that have proposed to the Ministry of Construction for a license to invest in the ultra-white glass production line with a high capacity from 600 to 900 tons/day.

But this project in the investment report paid attention to the production of energy-saving glass.

On the supply-demand continuum, there will be a situation where supply exceeds demand, if those manufacturers provide this product only in the local market. However, the export of energy-saving glass products with high added value is a good direction for coated glass production enterprises.

Vietnam is currently allowing the export of glass sand and glass manufacturing materials. In its policy and orientation, the Vietnamese Government encourages deep processing, which increases the added value of the minerals. The Ministry of Construction has also conducted research and found that in the near future, maybe even next year, we will stop the export of Vietnamese glass sand. This will also have an impact on the region, although not much for the glass manufacturing materials. This move will encourage enterprises to invest in Vietnam and promote the export of energy-efficient glass products to foreign markets.

Vietnam is trying its best to fight against climate change, and wishes that the international community will join this fight, especially countries in this region.”

Mr. Minh, Chairman of Viglacera Corp: “First of all, on behalf of the Viglacera Corporation, I would like to express my deepest gratitude to our partner Von Ardenne for their close cooperation for the past year, as well as their invitation to this event, providing an invaluable opportunity for Viglacera to promote the company image to other companies all around the world.

As I was preparing for this speech, I spoke to my colleagues about the Low-E project. This project is a long story with lots of memorable milestones. We are so happy to tell you that our factory has finally concluded the trial manufacturing period and has carried out almost perfect operation with very impressive parameters.

Last year in May 2015, Viglacera and Von Ardenne started the first official negotiation rounds on the EP Contract for this Low-E project.

This brings me back to those tough negotiation rounds that fell into deadlocks several times. Finally, we succeeded.

Viglaccera is over 42 years old, and plays a very important role in supplying construction materials in Vietnam, has 45% market share of construction glass, 10% sanitary, 5% ceramics tiles, 30% clay roof tiles in Vietnam. Until now Viglaccera has invested and constructed over 100 projects in construction materials. This project is the most successful project from Viglaccera in terms of project implementation time, product quality, time of production testing and the consumption criteria are all optimal and lower than what we have agreed in the contract between Viglaccera and Von Ardenne.

This is a remarkable landmark event as Viglacera Corporation becomes the first Low-E glass manufacturer in Vietnam, as well as in South-East Asia. This greatly contributed to Viglacera’s position in the industry as the best manufacturer and supplier of construction materials in Vietnam as well as a notable company in the traditional products such as tiles and clay tiles, sanitary ceramic tiles, construction glass and real estate.

With many years of experience in the field of residential and

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industrial real estate, Viglacera Corporation also aims to use green materials to save energy during construction aligning with the energysaving trend of the world. And, as you know, the necessity to use energy-saving products like Low-E glass in Vietnam is growing rapidly.

That is also the very reason why we have just been accepted by the Ministry of Construction of Vietnam for a new production line. This will be a production line for the ultra white float glass, used for coating Low-E glasses and solar panels. In the second process of the project, Viglacera will directly produce solar panels.

As we position ourselves as the leading manufacturer of construction materials in Vietnam, Viglacera has the responsibility to customize its production, application and technology towards the Vietnamese market. In an era in which technology changes everyday, we chose Germany, in general, and Von Ardenne, in particular, to be our longterm strategic partner. Through the first Low-E project of Viglacera, I am proud to say that our choice was absolutely correct.

I hope that Viglacera and Von Ardenne will cooperate with each other in many other aspects in the future. Once again, I would like to send my deepest gratitude to Von Ardenne.”

Hans-Christian Hecht, Von Ardenne: “In October 2015, Viglacera placed an order for a GC254H glass coater with VON ARDENNE. The project was realized in an extremely short time so that the machine was already operational in July 2016.

This cooperation is extraordinarily important for Vietnam, Viglacera and VON ARDENNE. Viglacera and VON ARDENNE have known each other for more than 7 years. During this time, we have been intensifying our relationship and have met at various places, here at the glasstec, but also in Hanoi or our headquarters in Dresden, to talk about possible projects.

In February 2015, the tender for this ambitious project began and for us it was beyond any doubt that we would try our best to win the bid. After the bidding process and demanding negotiations, we are very proud that we were awarded with the contract.

Now, our GC254H glass coating system is not only the first of its kind in Vietnam but also in South-East Asia. So, supplying this coater was a pioneering project for the whole region. Thanks to that, Vietnam is the pioneer of an up-and-coming region, where several countries are taking similar measures to protect the climate.

Our Vietnamese partner assured us that they appreciated our long-term, reliable and valid expertise. And we are very pleased with their detailed explanation: Viglacera was convinced by our offer because we were able to provide a technologically compelling solution and a complete project management for this demanding and time-critical project.

Even as it took very long to establish the relationship with Viglacera, the project duration was extremely short. As I have mentioned before: only nine months after the contract was signed, the coater was put into operation in Di An. I would like to thank all employees of Viglacera, VON ARDENNE and our suppliers for the quick project execution.

I would also like to extend special thanks to our partner Torgauer Maschinenbau GmbH that provided the loading, unloading and glass handling system, but also to Glastechnik-Anlagenbau GmbH from OerErkenschwick, who completed this turnkey project by providing the glass cleaning machine. Both companies managed the impossible and delivered in an extremely short time.

Asian Glass opinion: Tough negotiations, but the right outcome. Viglacera has not only trail-blazed now in ASEAN with the installation and commissioning of this line, but has protected its domestic interests for the next 5 years by retaining first mover advantage in limiting the supplier’s other activity in the country. This of course will also work to Von Ardenne’s advantage, as the factory at Viglacera clearly has the capacity for the installation of additional lines… and we can all guess at who is going to be on pole position to supply them.

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News Anaylsis

News

30

Egypt: flat glass feels the pressure T

he flat glass industry in Egypt is in danger due to rising costs, the foreign currency shortage, and the lack of some production inputs, according to Mohamed Khattab, executive manager and managing director at Sphinx Glass Ltd, and member of the Chamber of Chemical Industries at the Federation of Egyptian Industries (FEI).

Khattab said that production costs have increased by 50% in the past two years, yet the price of products for consumers has not increased by the same ratio to bridge that gap.

It has become difficult to compete with foreign products due to the increased cost of inputs, such as raw materials and energy.

The gas price for glass companies in Egypt is not competitive, said Khattab, citing Saudi Arabia and Algeria, which obtain gas for around 40% of the price paid by companies in Egypt. This is compounded by gas needing to be bought in US dollars—the price of which has appreciated dramatically against the Egyptian pound.

In light of global prices, Khattab says the best gas price for glass factories in Egypt is 3.5 per 1m BTUs. In addition, Solvay suspended operations in Egypt a few months ago as a result of the difficulties in the business environment in the country. The glass factories now have to import soda ash as one of their production components. According to Khattab, Egypt’s requirements for sodium carbonate is roughly 400,000 tonnes annually.

Khattab adds that the raw material sector needs investment and that the state should have supported Solvay to continue producing, or taken over the production process to maintain the volume of locally-produced production. This is especially as the higher US dollar exchange rate has led to higher import costs for Egyptian companies.

In addition, problems with competing products imported from overseas continue, particularly as these products enter the market at discounted prices. The countries that export the most glass to Egypt are China and Saudi Arabia.

Khattab said that members of the Chamber of Chemical Industries called on the customs committee in the FEI to amend

asianglass AG 16-5

the customs distortions of glass. Reflective glass, which requires the best technology for manufacturing, is subjected to a 10% customs tariff. “We demanded that this be increased to 20%, similar to transparent glass”, he explained.

The members also addressed officials to amend the custom regulations, especially since China has benefitted by doubling exports to the country in 12 months.

Moreover, Saudi Arabia enjoys the Arabian Partnership agreement that allows its imports to be exempted from customs fees.

Khattab also said that the Mineral Resources Act has managed to contribute to price increases of 20-25% in the industry as prices and freight rates have all risen domestically.

All these factors have now converged simultaneously and hammered production costs. This in turn has weakened the industry, and provided more opportunity for exporters to Egypt, particularly from places not suffering in the same way.

What is more, exports are also directly impacted, because companies are forced to export at lower prices that achieve limited to no profit, in order to maintain their foreign markets.

Sphinx Glass will achieve EGP 550m in total sales in 2016. The company exports its products to the US, Brazil, Europe, and India.

The company works at full production capacity, and produces 220,000 tonnes per year. The company’s market share of glass for building is 40%, and it also acquires a major share of the automotive glass market in Egypt.

The flat glass market in Egypt accounts for roughly 350,000 tonnes a year—85% of this glass is used for buildings and construction, and 15% for cars and other uses.

The company has plans to double its production by adding a new production line with investment costs of 150m. Thus, the company’s production capacity size will reach 440,000 tonnes.

The growth rates that can be achieved are linked to the production increase, which in turn requires adding a new production line.

“However, costs are continuously increasing and the vision in the market is unclear”, Khattab said.

He added that the Egypt Expo and Convention Authority (EECA) does not

adequately support foreign companies to participate in foreign exhibitions.

He noted that the company is currently promoting reflective glass products with an insulation system to reduce the permeability of heat from the sun into buildings.

This trend is in line with the state’s plan to rationalise electricity consumption, especially since the majority of building faades are made of glass which easily overheats rooms. This results in high electricity consumption in buildings due to the constant use of air conditioning units.

Solar glass and cell production is also a real possibility. However, it is not yet being capitalized on.

“We need factories with large production capacities, especially as the demand on glass is high, and I expect a significant growth over the next two years,” said Khattab.

The problem is that we import the entire cell, which deprives local industries from participating in its production, Khattab said. The reason behind that is the limited number of factories that assemble solar panels.

It would be better to improve the local industries in that field and push for further investments, as the US dollar crisis has rendered many companies unable to import, and the factories are not ready for supplying.

The government should support industry and investment.

“We have seen some good decisions passed” Khattab said, citing the new exports support programme, including the implementation of the value-added tax (VAT) which will bolster the local industry.

“The VAT ratio to the company’s products is roughly 80%, which provides us with a great competitive advantage, especially as we exports to a number of African countries.”

Khattab said that the government should resolve the US dollar problem because it has increased production costs, impacted the industry negatively, and delayed new investments.

Khattab concluded by saying that the International Monetary Fund’s (IMF) loan will contribute to solving the problem if it is used correctly for profitable projects, not for the repayment of bills.

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ANALYSIS: Container Glass

A-P hits the heights Southeast Asia packaging review, p1 Jahir Ahmed discusses that although glass packaging may be slowing elsewhere in the world, ASEAN is poised to become 10% of the global market as growth continues apace.

D

riven by the rapidly expanding beer consumption following rise of disposable income among the mass consumers, the region is become a promising market for the glass packaging. Thanks to beer and new market changer energy drinks that prefer glass for upper segments. The beverage market is growing annually by double digit helping glass have a significant slice, although PET and can are taking most.

In what is fast approaching a trillion dollar global packaging market, the largest stake-holding region, Asia Pacific, and most particularly, Southeast Asia under ASEAN bloc, has emerged as the fastest growth area. Asia Pacific’s share has already expanded to more than a third of the total world consumption of all types of packaging materials, according to the market growth analysed by the researchers at UK/USA based World Packaging Organisation (WPO)/PIRA International. Paperboard/paper, plastic and metal are well ahead of glass in total global consumption of packaging materials.

However, in glass, with an estimated much higher stake of around 37-38 percent in more than US$40 billion global glass packaging in 2015, Asia Pacific’s share is expected to have reached about US$16 billion. Southeast Asia’s stake is estimated to be at least US$3.5 billion.

Glass’ share in world packaging consumption is almost stagnant at about 6 percent. In global packaging consumption by end-use market, the shares of beverage and food at about 14 and 40 percent, respectively, are two greatest supporters of glass, according to PIRA. The share of Southeast Asia in global glass packaging is expected to rise to about 10 percent with annual market of US$4.5-5.5 billion by 2020, when worldwide glass packaging is estimated to be some US$55 billion, according to the US based market researcher Global International Analysis (GIA).

GIA said Asia Pacific represents the largest market in the world, closely followed by Europe. The region also represents the fastest growing market

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with a CAGR of five percent in value term over the period.

The region’s emerging markets, China, India and others are witnessing increased consumption of glass packaging due to rising disposable income, changing lifestyles and increasing demand for beer, cider, soft drinks and others. The growing food market in the region provided the required impetus for growth, supported by the popularity of the glass packaged food products, such as, dairy, spreads, syrups, dressings, sauces and seasonings in several Asian countries. Increasing awareness over the environmental and health benefits of glass packaging also made positive impact on the glass demand.

The world’s largest glass packaging market China alone consumes 50-60 percent of the container glass used in Asia Pacific, representing the Far East including Australia-New Zealand, according to the data available with WPO/ PIRA researches. The market researchers estimate, some 36-38 percent of the global glass packaging is currently consumed in Asia Pacific, in which the shares of Australia and New Zealand combined is at least three percent, while 33-35 percent is shared almost equally by China and the remaining Far Eastern countries of South Asia, Southeast Asia and East Asia including Japan and the Koreas.

In Asia Pacific, China currently consumes about US$8 billion worth of glass packaging annually. Japan, Indonesia, Australia, India and Thailand, in order of quantity, consume US$1 billion each per year. Industry sources estimate that by 2020 Asia Pacific’s share in glass packaging is likely to rise to over 40 percent, valued at about US$23 billion to US$25 billion, a quarter of which will be spent by Southeast Asia or ASEAN bloc of 10 member countries with some 600 million strong consumers.

Market intelligence provider Smithers Pira of UK forecasts the global packaging’s annual growth of 3.5 percent per year in next five years is approaching to a US$1 trillion market, with sales to reach US$997 billion by 2020, from an estimated US$839 billion of 2015. It says the global packaging market to reach US$975 billion by 2018. Plastics will lead the growth while glass will continue as slowest and will be used as sophisticated packaging

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ANALYSIS: Container Glass

BJC TGI container glass. Photocredit: BJC TGI

of beverages to luxury materials.

It said the rigid plastic and flexible plastic will experience the highest annual growth across the study period. Rigid plastic will grow 4.4 percent year on year, due to continuous popularity of PET, as substitutes for heavier metal cans and glass bottles formats, and Southeast Asia would be one of the areas of greatest expansions. However, the new high-speed filling equipment that holds containers by their neck fixtures will allow flexible PET formats to compete against rigid PET in the beverage and food segments.

Southeast Asian packaging market, with all types of solutions, board and paper, plastic, metals, glass, and others, has a double digit combined annual growth in all six major packaging industry countries of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, under 10 member ASEAN. Other remaining countries, Brunei, Cambodia, Laos and Myanmar, with slower growth are less industrialised and easily-reachable closest neighbours under the free market of Asean Economic Community. In an environment of slower growth compared to others, glass packaging concentrated more to beverages, including alcoholic drinks.

Billion mark

Indonesia is already over US$1 billion glass packaging market with a huge 256 million population. Thai packaging market has recently reached the billion dollar mark. Vietnam, Philippines and Malaysia combined have also hit the billion dollar level. Food and beverage sectors are the prime consumers of the glass packaging, but the industry is dominated by glass’ rivals, such as, plastics, boards/papers and metals.

Market researchers and industry sources estimate the total ASEAN packaging market size for glass is nearly US$4 billion, out of total of about US$80 billion of all types of packaging. This means glass currently represents some 5 percent of total in the ASEAN, and growing to reach global average of about 5.5 percent by 2020, with expansion of beverage markets substantially by about 30 percent in terms of value in

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next 4-5 years.

Currently, the ASEAN packaging glass market is deficit of up to half a million tons per year. Except Thailand, all other ASEAN countries are import dependent. Annual imports reached to that half million tons level in 2013, when the ASEAN countries spent US$357 million on imports of glass bottles and jars, according to the statistical estimates published by the Geneva based International Trade Cetntre (ITC).

The stake of glass is dominated by the four leading players of the region, Thailand based Bangkok Glass Public Company Limited (Bangkok Glass) and Berli Jucker Public Company Limited (BJC), the Philippines’ San Miguel Corporation (SMC), and the US based O-I (Owens-Illinois Inc) with a packaging glass plant O-I Jakarta in Indonesia under O-I Asia Pacific segment.

These four companies have plants in more than one country, and they profitably operate in Vietnam and Malaysia too. The region’s largest packaging market, Indonesia, has some other major packaging glass manufacturers with notable one, Muliaglass Containers Division (MGC) known as Muliaglass, under PT Mulia Industrindo Tbk. Thailand also has a third market leader, Siam Glass Industry Co Ltd (SGI).

In specialty packaging, Indonesia has German global specialty pharmaceutical packaging leader SCHOTT subsidiary manufacturer PT SCHOTT Igar Glass for pharmaceutical packaging in the Asian region.

All the regional majors produce glass containers for companies who manufacture alcoholic and non-alcoholic beverages, foods, pharma products, etc, including beer, whisky, soft drinks and energy drinks; foods; pharmaceuticals and drinking water/soda water.

Dynamic provider

Thailand’s packaging glass manufacturers are most dynamic in providing solutions parallel to the market growth and demand in the domestic markets and other neighbouring countries throughout Southeast Asia.

AG 16-5 asianglass

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ANALYSIS: Container Glass

Leading operator Bangkok Glass started up in the late seventies in the Thanyaburi in district in Pathumthani province with a 150-ton furnace and capability of producing a million bottles per day. Now it has expanded production units to five plants with over a dozen furnaces in key districts of Thailand’s major provinces, raising production capacity to 3,635 tons per day.

“We grow with the customers providing exemplary services and solutions,” said Bangkok Glass Chairman Vapee Bhirom Bhakdi. The glass manufacturer serves packaging needs of many elite brands in foods and beverages in addition to its owning company Boon Rawd Brewery, Thailand’s leading beer and alcoholic drink producer. “Bangkok Glass is committed meet the ever-growing demands of the domestic market,” Bhakdi added.

Thai conglomerate and drink and beverage manufacturer BJC which owns TGI with an annual production capacity of 2,445 tons per day.

Originally founded in the early 1950s as Thai Glass Manufacturers Company Limited (TGM) in Rajburana the than outskirts of Bangkok, TGI’s largest and new facility Bangplee plant, near Bangkok Suvarnabhumi airport, has a production capacity of 1,745 tons per day, with five furnaces and 15 machines, while its Rajburana plant has a capacity of 700 tons per day, with three furnaces and 10 machines.

BJC is an equal equity joint venture partner with O-I in Singapore based BJC O-I Glass Pte Ltd that owns production plants in Malaysia, Vietnam and Thailand. In 2010, O-I and TGI entered into this major partnership to acquire shares in Malaya Glass Products Sdn Bhd (MGP), including shares in Malaya Vietnam Glass Limited (MVG) and Thai Malaya Glass (TMG).

This made MVG and TMG part of the BJC Group and O-I. The joint venture pushed ahead collaborations in expansion of glass packaging in Thailand, Malaysia and Vietnam. TGI is now the leading glass packaging force in Southeast Asia. On the other hand, due to the joint venture, O-I also became another top manufacturer of packaging glass in Southeast Asia. O-I already had its own plant O-I Jakarta in Indonesia, under O-I Asia Pacific operations, with a production capacity of 2.3 million premium quality glass bottles per day.

With the BJC O-I acquisition of MGP, the glass packaging manufacturing unit of beverage major Fraser & Neave Holdings Sdn Bhd of Malaysia, the entity took over four glass container factories located in Sichuan in China, Johor Bahru in Malaysia, Ho Chi Minh City in Vietnam, and Saraburi in Thailand.

BJC and O-I undertook joint management of the operations of Malaya Glass in Malaysia and Vietnam on a 50:50 basis, while BJC assumed majority ownership of the Malaya Glass’ operations in Thailand. Malaya’s Saraburi plant was integrated into the existing TGI operations in Thailand, while the Chinese plant became a part of the existing O-I operations in China.

In a latest move, BJC is going to invest Thai Baht 2 billion in the construction of a new furnace with production capacity of 300 tonnes of glass containers a day, to cater to rising demand. The new plant in Saraburi province is scheduled to commence commercial operations by the end of next year.

The 15.2 hectare plant comprises three sites managed by BJC’s subsidiary Thai Malaya Glass. It will manufacture glass containers for beer and other beverages, foods, pharmaceuticals and other products to meet the demand from domestic customers and those in Cambodia, Laos, Myanmar and Vietnam.

Market strategy

Southeast Asian glass majors have been investing continuously in alternative packaging, mostly in plastics and cans to stay in the market with full strength of total packaging solutions. Glass bottles are now targeting luxury and upscale drinks and beverage markets. The process started two decades ago has now great command on the markets. This has helped the glass companies support glass in the market technically and financially.

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asianglass AG 16-5

MAJOR OPERATORS OF PACKAGING GLASS IN SOUTHEAST ASIA

INDONESIA O-I Jakarta Plant (Under O-I Asia Pacific operations) Location: Cakung, Jakarta, Timur, 13960, Indonesia Products: Glass containers for glass packaging Markets: Domestic and export markets Others: US based global packaging glass leader O-I’s regional arm O-I Asia Pacific operated O-I Jakarta produces around 2.3 million glass bottles per day for some of Indonesia’s leading food, beverage and pharmaceutical brands. O-I covers the whole range of bottles for spirits, vodka, whisky, rum, gin, tequila, aperitifs, etc, and for glass containers for beer, wine, sparkling wine and champagne, mineral water and liquors, with various sizes, shapes and colours. O-I Jakarta also helps the consumers in Indonesia and other Southeast Asian countries with supplies shipped from other production plants in Australia, New Zealand and China.

Muliaglass (Muliaglass Container Division (MGC) of PT Mulia Industrindo Tbk) Location: Lemah Abang, Cikarang-Bekasi 17550, Jawa Barat, Indonesia Products: Glass containers, including glass bottles, jars and beer mugs.

Markets: Domestic and export markets Others: MGC can produce up to 185,000 tons per year of glass containers, including flint glass packaging for food and beverage products, and beer mugs, and amber and green glass bottles for beer, energy drinks, and pharmaceuticals.

PT. SCHOTT Igar Glass Location: Delta Silicon Ind. Park, 17550 Lippo Cikarang-Bekasi, Indonesia Products: Pharmaceutical packaging glass Markets: Domestic and export markets Others: Germany based global pharmaceutical packaging leader SCHOTT’s Indonesia plant is providing as a hub for the company’s supplies to the Indonesian markets and the other neighbouring countries, especially, in the ASEAN region. SCHOTT’s Indonesian operation primarily manufactures small-sealed vials known as ampoules, and about 50-60 percent of sales are derived from the domestic market while the remainder are exported, mainly to Asian countries, including South Korea and Japan, the company said. The customers are mainly the pharmaceutical manufacturers that provide injected medications, the applications of which involves high quality glass packaging in which Schott has a command in the market. Overall, the Indonesian pharmaceutical sector is growing by at least six percent per year with expansion of spending in receiving health services.

MALAYSIA Malaya Glass Products Sdn Bhd (MGP) Location: Johor Bahru 81200, Malaysia Products: Glass containers for glass packaging Markets: Domestic and export markets Others: MGP is a joint venture of MGP, BJC and O-I. It manufactures and sells glass containers for breweries, food companies, and soft drinks manufacturers in Malaysia, South East Asia, China, and Australia. In normal operation Malaya Glass Products has a production capacity of 445 tons per day or 165,985 tons per year.

PHILIPPINES San Miguel Yamamura Packaging Corporation (SMYPC) Location: Mandaue City, 6014, Cebu, Philippines Products: Glass containers for glass packaging Markets: Domestic and export markets Others: San Miguel Corporation and Japan's Nihon Yamamura Glass Company Ltd joint venture, SMYPC, offer normal bottles, decorated bottles, novelty bottles, custom-designed bottles and jars and stock glass bottles in amber, green and flint.

SMYPC has its roots in San Miguel Brewery Inc (SMB), the largest producer of beer in the Philippines, with nine out of ten beer drinkers preferring its brands.

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ANALYSIS: Container Glass

BJC aims to be the country’s leading provider of total packaging, including glass, cans, board, paper and PET bottles, within five years. This is needed to respond to increasing demand not only from future expansion of BJC and its affiliates such as Thai Beverage but also from outside food and beverage manufacturers and export markets, according to a BJC Group packaging division official Pattaphong Iamsuro.

Like Bangkok Glass and BJC, Philippines based market leader SMC has many diversified products used in beverage packaging, specially, for its own consumer plants, since decades.

SMC’s San Miguel Yamamura Packaging Corporation (SMYPC), which has a packaging glass plant in Vietnam, San Miguel Yamamura Haiphong Glass Co Ltd, in addition to packaging glass production units in the Philippines, is another major manufacturers among several others in all five major glass manufacturing countries, Indonesia, Malaysia, Philippines, Thailand and Vietnam, in the Southeast Asia region.

SMYPC manufacturers various alternative packaging products. The company claims it provides total packaging solutions across the globe as it exports to different countries a wide range of products, glass, plastics, metal, flexibles, PET, moulds, and paper, to meet the requirements of a wide variety of industries, including the beverage, food, pharmaceutical, industrial, personal and household care industries.

Much of the company’s packaging products are consumed by own food, drinks and beverage production units, which are some of the largest and oldest manufacturers of their types in Southeast Asia. San Miguel is one of the largest century old drinks and beverage manufacturers in the region.

The SMYPC brand combines two Asian brands, San Miguel Corporation of Philippines and Nihon Yamamura Glass Company Ltd of Japan. The company claims it has expanded its market reach spreading to Southeast Asian countries and to Australia, Middle East, Africa, United States and Europe.

THAILAND

Regional backup

VIETNAM

The joint venture with BJC made O-I operations in Asia strategically highly advantageous in competition, particularly, by its Asia Pacific segment in which O-I Jakarta is an important part to command supplies of packaging bottles to the deficit areas of Southeast Asia, and to meet the high quality bottle requirements of upscale alcoholic and non alcoholic drink manufacturers.

O-I Asia Pacific is now in comfortable position after substantial revenue loss in Australia and China in 2014 and 2015, according to the company reports. The net sales in 2015 was US$671 million, 15 percent down from already declined US$793 million of the previous year. Last year’s revenue loss was mainly due to weakening of Australian currency. The performance has improved this year. “O-I is expecting comprehensive turnaround in 2016 in Asia Pacific that turned the corner in 2015 after facing years of long-term structural challenges,” said O-I Chief Executive Officer Andres Lopez.

O-I’s investment or production capacity is very limited in Southeast Asia compared to the other Southeast Asian major operators, but its presence is widely felt in the region.

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asianglass AG 16-5

Bangkok Glass Public Company Limited Location: Ratchadaphisek Rd., Klong Toey, Bangkok 10110, Thailand Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Bangkok Glass Public Company Limited, also known as BGI (Bangkok Glass Industry Co) Group is the largest glass container manufacturer in South East Asia, and is a subsidiary of Boon Rawd Brewery, known internationally for Singha Beer since 1933, with Saint Gobain Oberland (SGO) as the Group's largest foreign shareholder. Annual production capacity to 3,635 tons per day and expansion in progress.

Berli Jucker Public Company Limited (BJC) (Thai Glass Industries Public Company Limited (TGI) and Thai Malaya Glass Company Limited (TMG) Location: Principal production unit at new site in Saraburi, Thailand Products: Glass containers for glass packaging Markets: Domestic and export markets Others: BJC’s flagship Thai Glass Industries Public Company Limited (TGI) and its other Thai unit Thai Malaya Glass Company Limited (TMG) have daily production capacity of 2,445 tons and 990 tons, respectively, to cater BJC’s own drinks, beverage and healthcare packaging demands and to meet the customers in other packaging industries.

Siam Glass Industry Co Ltd (SGI) Location: Phraphradaeng, Samutprakarn 10130, Thailand Products: Beverage, drinks, food and medicine packaging glass Markets: Domestic and export markets Others: SGI, set up in 1977, in Phraphradaeng (south of Bangkok) in Samutprakarn province, is equipped with 7 furnaces and 19 production lines in 3 sites to manufacture 1,500 tons of flint, amber and green glass containers per day. In technology collaboration with the leading Japanese glass bottle manufacturer and machinery supplier Nihon Yamamura Glass Co Ltd, SGI accelerated the development and improvement the capability to suit the customer’s needs in the packaging industries. The company produces narrow and wide neck glass bottle of flint and and colours from 15 ml up to 750 ml size for pharmaceutical and cosmetics, beverages and beer, and food packaging. SGI is a subsidiary company of Thailand’s one of the beverage market leaders, Osotspa Group, the largest consumer of SGI bottles.

Malaya Vietnam Glass Limited Location: Ho Chi Minh City, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Malaya Vietnam Glass Limited manufactures and distributes glass containers serving producers of beer, beverages, and foods.

Began production a couple of years ago with a yearly output of approximately 75,000 tonnes of mainly returnable premium packaging glass for Vietnam’s beer, soft drink, food, wine, spirits and pharmaceutical markets. It has the capacity to adapt to market trends, extending to four lines with a production capacity of some 90,000 tonnes of glass bottles annually.

San Miguel Yamamura Haiphong Glass Co Ltd Location: Ngo Quyen District, Hai Phong, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: San Miguel Yamamura Haiphong Glass Co Ltd operates as a subsidiary of the Philippines based San Miguel Corporation group (SMC) owned San Miguel Yamamura Packaging International Limited (SMYPIL), which is SMC’s international packaging business under San Miguel Yamamura Packaging Corporation (SMYPC). SMYPC and SMYPIL are joint ventures of SMC and Japan based Nihon Yamamura Glass Co Ltd.

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ANALYSIS: Container Glass

Because of its global power base and its position as the market leader in glass packaging, manufacturing and supplies in Asia Pacific, O-I has some sort of controlling capacity in the Southeast Asian packaging markets, by making its presence stronger than any other with glass bottles shipped from its factories located in Indonesia, China, Australia and New Zealand, under O-I Asia Pacific operations.

Among O-I specialty business, its New Zealand based premier recycled glass factory provides most competitive proprietary bottles, which are bespoke with customers’ ownership of the bottle design. O-I provides bottles to the New Zealand breweries to take Kiwi craft beer to Southeast Asia, where it has great demand. O-I claims the bottles are designed to reflect Kiwi innovation and the Asian drinking culture of sharing, and at 888 ml and 258 ml, the numbers thought to be popular in Southeast Asia and East Asia.

The flourishing Asia Pacific region is home to a network of O-I manufacturing plants, a technical advancement centre, a mould shop and a talented local sales force, in addition to the benefit of joint-venture operations in Malaysia and Vietnam. “O-I sales staff and representatives understand local market conditions and work hand in hand with customers to help build their brands across the region,” said an O-I Asia Pacific official in Jakarta.

O-I Jakarta plant produces sophisticated glass bottles for some of Indonesia’s leading food, beverage and pharmaceutical brands. Existing customers include Multi Bintang, PT Asia Health Energy Beverage, PT Djojonegoro, PT Supra Ferbindo Farma and Ultra Prima Adadi. As part of the O-I group, O-I Jakarta ensures its customers have access to the most advanced glass containers.

For the last four decades, the Indonesian and Southeast Asian markets represent major opportunities for O-I Jakarta plant that produces light weight and narrow neck bottles among its usual other quality glass containers for food, beverage and pharmaceutical markets of Indonesia and other Southeast Asian countries.

Rivals rise

Glass packaging continues to grow in Southeast Asia despite the very high growth of alternative packaging. This is even though there has been market erosion in the main user markets of beer and other beverage manufacturing.

In recent period, glass’ main competitors rigid and flexible plastics which grows by 20-30 percent in some of the region’s beverage markets, such as, Indonesia, are increasingly facing barrier against growth by the environmental activists and the government that may have positive impacts on glass packaging all over ASEAN region. But food and beverage manufacturers are resisting the move everywhere because of the continued dependence on plastics and various favourable reasons in application of plastic packaging.

Competitors to glass particularly, plastics and metals, are continuously grabbing the market shares of glass packaging all over Southeast Asia, as in other parts of the world. However, the share is declining in number, in percentage. The glass consumption is steadily rising in the country like Indonesia, while at the same time glass is being replaced with rival packaging like plastics, cans, etc, in various stores by their promoters indirectly. When the government reacts against environmental pollution, glass demand rises.

In a latest move, in line with some other countries in Asia and Europe, Indonesia is thinking of imposing excise duty of 2-5 US cents per small size plastic bottles, smaller than gallon bottles, but in face of resistance the government is applying ‘wait and see’ policy.

Indonesian Finance Minister Bambang Brodjonegoro said consumption of plastic bottles needs to be curtailed because these products are ‘poison for the environment’ as it can take up to 100 years for plastic items to biodegrade, and it brings costs for the government to deal with plastic trash. He added that besides bottled drinks, the new excise tax may also be imposed on plastic packages for items such as cooking oil.

But the resistance is stronger against the move. Adhi Lukman, General

Glass container imports by ASEAN countries in quantity List of importer countries for the selected product in quantities in tons Product: HS Code 7010 Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass.

Importers World

2011

2012

2013

2014

2015

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

Imported quantity, Tons

No Quantity

No Quantity

No Quantity

No Quantity

No Quantity

Association of South-East Asian Nations (ASEAN) Aggregation

355,980

Philippines

143,351

111,411

123,687

120,157

108,594

Myanmar

42,724

No Quantity

59,125

No Quantity

77,059

Indonesia

85,729

109,941

129,569

105,670

73,634

Thailand

40,280

128,307

112,108

54,245

51,729

Malaysia

17,758

36,611

44,905

39,757

41,669

Laos

16,640

No Quantity

30,299

26,962

20,960

Cambodia

9,387

13,212

10,003

21,807

9,496

111

No Quantity

78

31

42

Singapore

No Quantity

No Quantity

No Quantity

31,453

No Quantity

Vietnam

No Quantity

No Quantity

No Quantity

47,145

No Quantity

Brunei Darussalam

509,774

Sources: ITC calculations (estimated) based on UN COMTRADE statistics.

38

asianglass AG 16-5

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ANALYSIS: Container Glass

Chairman of the Indonesian Food and Beverage Association (Gapmmi), and Enny Sri Hartati, Director at the Institute for Development of Economics and Finance (INDEF), rejected the Finance Minister’s arguments saying that the new tax will have a negative impact on the country’s food and beverage industry.

They said the government measure may backfire, because, if consumption of plastic packaged products declines the tax revenue of the government will also decline and attractiveness of investment climate and competitiveness of Indonesia will be reduced greatly. The government is studying the possible impacts claimed by Gapmmi and INDEF and others.

Larger bottles and gallons will not be subject to this new tax. Plastic bottled drinks, such as, water, ice tea, soda or juice are very popular in Indonesia. The middle class population in Indonesia is expected to double to 141 million within the next five years, further driving plastics consumption.

According to the Indonesian Packaging Association, food packaging accounts for 70 percent of plastic consumption.

Behaving rich

With increasing spending power in Indonesia, aluminum cans are getting better access into the stores. As retail chains modernise, beverages are increasingly available in aluminum cans rather than glass bottles and other containers, except plastics. Plastic bottle demand is also on the rise, but the can demand is growing sharply for beer with increase of wages and salaries and other incomes, said the industry sources.

As part of modernization and behaving rich, cans are rising in other ASEAN markets too. Global can leader, US-based Ball, is expanding markets even in low income countries. Ball has built up its first Myanmar can plant to produce aluminum beverage cans. Commercial production is due to start this year.

American company Crown Holdings is reportedly strengthening Thai and Vietnamese facilities opened in 2013. Japan’s Showa Denko plans to lift capacity at a plant near Vietnam capital Hanoi by about 50 percent to 2 billion cans a year by 2018, spending about Japanese Yen 6 billion.

Glass container exports by ASEAN countries in quantity List of exporter countries for the selected product in quantities in tons Product: HS Code 7010 Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass.

2011 Exporters World

2012

2013

2014

2015

Exported quantity, Exported quantity, Exported quantity, Exported quantity, Exported quantity, Tons Tons Tons Tons Tons No Quantity

No Quantity

No Quantity

No Quantity

Association of South-East Asian Nations (ASEAN) Aggregation

285,648

254,092

267,897

296,240

Thailand

105,928

73,400

108,621

116,293

104,022

Malaysia

67,579

79,628

69,748

86,721

71,546

Indonesia

76,534

85,181

48,433

53,163

53,217

Philippines

31,983

15,809

14,708

17,274

19,660

Cambodia

0

7

0

0

784

12

46

83

66

1

1

0

0

0

Singapore

No Quantity

No Quantity

12,986

11,484

No Quantity

Myanmar

52

54

0

0

0

Vietnam

3,571

No Quantity

13,355

11,222

No Quantity

Laos Brunei Darussalam

No Quantity

Sources: ITC calculations (estimated) based on UN COMTRADE statistics.

40

asianglass AG 16-5

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ANALYSIS: Container Glass

Glass container imports by ASEAN countries in value List of importer countries for the selected product in value in thousand US dollars Product: HS Code 7010 Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass.

Imported value in 2011

Imported value in 2012

Imported value in 2013

Imported value in 2014

Imported value in 2015

9,137,517

8,858,915

9,487,166

9,912,135

9,139,350

Association of South-East Asian Nations (ASEAN) Aggregation

294,964

331,190

357,045

340,096

358,037

Vietnam

34,787

36,783

39,739

48,299

96,699

Indonesia

56,502

68,510

81,803

71,460

61,095

Philippines

69,421

60,572

65,618

60,715

56,420

Thailand

37,125

78,872

68,302

43,768

41,319

Malaysia

39,716

36,444

31,853

29,640

36,172

Myanmar

12,398

12,919

21,790

32,187

28,146

Singapore

34,807

26,185

29,534

32,071

25,257

Laos

5,441

4,122

13,280

11,334

8,321

Cambodia

4,381

6,528

4,879

10,429

4,409

386

255

247

193

199

Importers World

Brunei Darussalam

Sources: ITC calculations (estimated) based on UN COMTRADE statistics.

Glass container exports by ASEAN countries in value List of exporter countries for the selected product in value in thousand US dollars Product: HS Code 7010 Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass.

Exported value in 2011

Exported value in 2012

Exported value in 2013

Exported value in 2014

Exported value in 2015

8,869,419

8,982,328

9,687,513

10,073,207

9,217,046

Association of South-East Asian Nations (ASEAN) Aggregation

165,107

155,225

159,912

164,739

148,192

Thailand

43,882

34,529

50,264

50,566

44,931

Indonesia

49,975

55,094

39,423

39,139

35,220

Malaysia

36,861

41,220

37,342

43,514

33,290

Philippines

19,509

9,540

12,445

11,792

20,630

Singapore

12,244

9,168

10,174

10,036

6,858

Vietnam

2,584

5,651

10,245

9,657

6,723

0

1

0

0

515

3

17

34

20

Exporters

World

Cambodia Laos Myanmar

42

18

2

1

3

Brunei Darussalam

10

1

0

0

2

Sources: ITC calculations (estimated) based on UN COMTRADE statistics.

42

asianglass AG 16-5

www.asianglass.com

ANALYSIS: Container Glass ADVERTISER FEATURE

Ramsey Chain: conveying an advantage Ramsey’s Patented RKO Tool and Wear Protected Chains: Perfect Partners The RKO™ Knock Out Tool, one of Ramsey’s newest patented innovations, and Ramsey’s Wear Protected Chains (also patented) are perfect companions. They work together to help make life easier for glass manufacturers.

Wear Protected Chains: Special Links Protect Chains from Pin Head Wear In recent years, glass producers around the world have switched to wear protected conveying chains, such as Ramsey’s Lifeguard and Allguard FX. With unique, wear resistant links covering and protecting the chain, wear protected chains offer well recognized benefits. Improved ware handling, reduced maintenance, and longer chain life are results of the special patented side links. Wear protected chains can run in direct contact with lateral guides, immune to the pin head wear which is common in other chains and can destroy them.

The RKO Tool: The Perfect Complement to Wear Protected Chains The RKO Tool is specially designed to help manufacturers in connecting and disconnecting Ramsey wear protected chains. (Figure 1) The patented tool allows pins to be easily removed during chain disconnection and new connecting pins to be secured during chain connection. With the RKO Tool, this task can now be done simply, in only minutes.

The usual methods for removing a pin head, such as grinding or hammering, can be difficult and time-consuming. Often, efforts to remove the pins with usual methods can result in damage to adjacent parts of the chain. Meanwhile, during this repair process, machines are down, conveyors are not running, and productivity suffers. The RKO Tool can eliminate these problems.

Fig 1 .

The RKO tool can save hours when connecting and disconnecting the chains on a typical IS machine or cross conveyor.

RKO Stations Make Chain Disconnection Simple The RKO Tool has two stations for disconnecting chain. The first station has a ram screw which is used to break off the head of a pin during chain disconnection. Simply slide the tool under the chain, align the pin you wish to remove with the extraction screw, and then turn the screw handle until the pin head breaks. Usually, there is a distinct popping sound when the pin head breaks (Figure 2).

The second station allows the pin being removed to be easily driven out of the chain. By positioning the tool so the pin aligns with the extraction bore, the pin can be easily pushed out of the chain using a hammer and a tapered assembly pin.

Connecting Chain with the RKO Tool is Easy In typical plant production settings, it can be difficult to align the links in the two ends of a chain so a connection can be made. It is especially difficult if spacers, also called bushings or washers, are inserted between links. The RKO tool includes toothed guide blocks which serve to accurately align links and spacers in the joint being connected.

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Fig 2.

The RKO Tool is designed to quickly and easily remove pins wherever a chain must be disconnected.

The RKO Tool’s third station helps with fast and easy connections.

During connection, the RKO tool is placed under the chain, the chain ends are aligned, the pre-drilled pin is inserted in the chain, and the chain is shifted so the drilled pin is opposite the insertion rod at station three of the tool. Using the insertion rod, a drive pin with a washer is easily pushed into the drilled pin end (Figure 3).

The result is a tough, hardened, long lasting connection without the need for hammering, welding, or other potentially damaging methods.(Figure 4) A Tool Which Works With Many Chains RKO tools can be ordered to fit most any style of Allguard FX or

Fig 3.

The RKO Tool can be used to simplify installation of chain connecting pins wherever chain sections need to be joined.

Fig 4.

Completed Drive Pin Connection

Lifeguard chain. The tool’s unique, toothed guide blocks are modular in design and can be stacked to accommodate a wide range of chain widths and chain guide types. When a customer orders a tool, Ramsey’s customer service personnel help select the exact module configuration to fit the chain at hand. But the RKO tool is also very adaptable to changing needs. Modules can be easily removed and re-oriented at any time to fit different chain widths and guide types.

For the customer, this means, one tool can handle many different chain styles.

The RKO tool’s unique features have earned a US patent (US Patent 9,174,269 B2), and additional patents are pending. Combine an RKO tool with one of Ramsey’s wear protected conveying chains and you have a state of the art conveying system which provides long life, easy maintenance, greatly reduced downtime, and increased productivity.

Ramsey is one of the world’s largest manufacturers of silent chains and sprockets for industrial conveying and power transmission applications.

Visit us at www.ramseychain.com Article submitted by: Ramsey Technical Development Team.

AG 16-5 asianglass

43

ANALYSIS: Facades

Building th pushing the limits in the UAE

Agnes Koltay, of Koltay Façades, discusses the engineering challenges faced by the construction of the Opus Project in Dubai, UAE and the revolutionary façade technology that was employed to make it such a success.

T

he Opus project was initiated in 2006. Commissioned

by Omniyat, Zaha Hadid Architects developed a design resembling a cube with the core melted out. The 20 story building,- originally offices,was later changed to mixed used- situated in Business Bay, Dubai, UAE, is fully glazed. The outer flat facades are neutral transparent glazed with a silver mirror pattern, while the core area is dark blue 3D formed glazing. To accomplish this vision, several glass processing technologies were studied, selected, specified – and some abandoned after further studies. Challenges included realizing the 3D double curved shape, achieving the color, attaining adequate performance for the Dubai climate, dealing with the radiation focusing effect the geometry imposes, ensuring a seamless visual appearance among the different support systems (roof, wall, soffit), procuring special materials in sufficient quantities in reasonable time and keeping the project affordable. Koltay Facades was involved from the beginning and acted as façade consultant to achieve the project handover at the end of 2015.

Humble beginnings

The Opus has been designed by Zaha Hadid Architects for Omniyat Properties, on a site in the heart of Dubai’s Business Bay. The design of the 20-story office building started in 2006. In 2011, the function was modified to include a five star hotel, but without affecting the external look of the building. The project has two blocks with concrete slabs and columns, which are connected by a large wavy skylight over the atrium and by a steelwork bridge on the upper floors. The concrete structure and the steel bridge will be cladded over with fully glazed facades. The external flat facades are envisaged with transparent glass with silver mirror pattern, while the

44

asianglass AG 16-5

freeform internal void has a dark blue appearance.

The façade development has a long history: initially, momentum in property development prompted a fast track design with early involvement of a preselected contractor. But the later global financial events resulted in a slowdown and necessitated price adjustments that were achieved by an adjusted procurement strategy. Over the years of 2009-2012, the project team has considered and visited numerous facilities in Europe and Asia to find reliable but affordable sources for a highly customized project.

Site works commenced in 2008 with enabling and piling works, but then paused until late 2012. Installation of façade panels started in December 2014.

Geometry

The facades are fully glazed. The project resembles an ice cube with the inside melted out. The external glass facades are flat and have a silvery transparent look. The internal areas, named as the “void glass façade”, are dark blue and have a 3 dimensional free form geometry.

The geometry of the void façade was never intended to be optimized, neither by changing the geometry nor by changing the modulation. The slab interface lines are obvious joint line locations that cannot be moved or eliminated.

Additional horizontal lines are added midway, to reduce glass sizes and to allow for a more equal-proportion grid. The vertical joints are projections of a regular grid [Figure 3]. The resulting nominal glass size is 1500 mm x 1950mm, however due to the 3D geometry, the actual glass dimensions range up to 1900 x 2200mm (largest) or 1520 x 2510mm (longest).

With the grid and the fluid geometry uncompromisable, we turned to finding suitable glass processing technologies and architectural glass products to realize the architectural intent.

The void façade has been studied panel by panel. As a first step, the team used an adjustable mockup installation to establish the allowable angular difference in between two panels, which should not exceed 2.5 degrees.

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ANALYSIS: Facades

he Opus Figure 10. Building progress as of May 2015”.

The steel connecting bridge is yet to be installed, before the void cladding works commence.

Figure 2. Installation progress in early 2015.

Figure 1. The Opus in Business Bay, Dubai, UAE (Render by Zaha Hadid Architects for Omniyat)

With larger angular break, or with an out-of-tolerance step of adjacent panels, the glass surface may have looked pixelated, especially noticeable when surrounding buildings or clouds are reflected. Considering this, a Rhino Grasshopper script was used to study the planarity and the out-of plane offsets of each glass panel. A number of the void façade panels were found to be flat

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units. A small percentage is single curved in geometry. The rest of the panels have an offset at the fourth corner when compared to the plane set by the other three corners; these are double curved in geometry.

The intent in the initial years of the façade development was to form panels with a smaller offset as cold bent units, and only hot bend panels with very large offsets. If an offset up to a limit of 80mm is solved by cold bending, an approximate 20% of the void façade has to be hot bent double curved. We carried out independent test experiments to verify the behavior of double glazed cold bent fully unitized systems. However, at a later stage of the project, it was decided that the void will be formed by flat glazed and hot bent double curved units only, to simplify the system requirements. Cold bent units would have required unique framing retention solutions especially for the skylight units, adding to the complexity of system interfaces. Furthermore, as the years passed by since project inception, 3D modelling and manufacturing technologies became more wide-spread and more affordable. Custom cut elements, each being different, appear on more and more projects.

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ANALYSIS: Facades

Double curved glass

Double curving is an unsophisticated technology using a custom made mould and a large furnace.

The glass is placed on top of the mould and slowly sagged onto it by slow melting and the effect of gravity. The process takes 10-16 hours. Several pieces forming the same IGU or laminated assembly can be double curved simultaneously over the same mould, resulting in perfectly compatible pieces. If the desired shape is not fully achieved, or too long a furnace time results in marks from the mould bars, a new piece has to be manufactured. The glass does not get tempered during the process as the glass is not quenched but cooled naturally and slowly.

Developing the void glass

While the curved shape increases the rigidity of the glass, and laminates are added to render the solution safe and structurally sound; considering that the glass has a surface strength not much exceeding that of annealed glass, thermal stress is a critical issue for the project. The project is located in Dubai, where ambient air temperatures in summertime reach 55 ° Celsius, and do not drop below 5 ° Celsius in wintertime. Almost every day of the year is sunny in Dubai with peak solar radiation of 1100 W/m2 on horizontal surfaces and 800 W/m2 on vertical surfaces.

The design intent calls for a dark blue appearance for the void surfaces. This colour is best achieved with a body tinted glass, which has a high solar absorption.

Figure 4. Focalization study of solar energy reflections. Analysis for reflections of solar rays throughout the full year; the grid of points on the reflecting surface resulted in up to 10x higher density of points on the opposite side.

Figure 5. Solar energy hot spot analysis. Incident radiation values were analyzed on the concave surface (lens) at the moments in time when focalization occurs.

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asianglass AG 16-5

10-15% in order to avoid focalized hot spots being projected from one tower to the other.

In summary, a search started for a dark appearing body tinted product with low-E performance coating, low solar absorption values and relatively low external solar reflection, while also performing well for the hot climate and keeping solar heat transmission low. While this cannot all happen at once, the team was looking for an optimal product to balance the requirements to the most efficient result.

Initially a dark blue body tinted glass was proposed, but it was quickly disregarded for its high solar energy absorption and risk of thermal breakage.

A coloured PVB laminated glass was then considered for the blue appearance. However, the void glass is installed in vertical, inclined, horizontal skylight and horizontal soffit positions, necessitating the laminated layer to be placed differently in each location. This resulted in the solar energy absorption on the outer lite being too high in some situations. To overcome this problem the position of the coulored PVB was shifted between the outer and inner lites, but it heavily affected the look and the performance of the glass as the impact of having the blue PVB Figure 3. Panelization of the complex geometry “void glass façade”. The free form surface in front or in back of the Low-E coating proved is divided by horizontal lines at every slab line significant. Furthermore, reflectivity proved too high and midway between them. The vertical joints in terms of producing focalized hot spots on other are projections of a regular grid based on parts of the building. the main structure. (Excerpt of the 3D Rhino As a result, the coloured PVB option was model by Zaha Hadid Architects) abandoned, the design reverted to a bodytinted glass, but lighter than the original, used for both the C h e m i c a l external and internal lites [Figures 6 & 7]. This solution distributes the solar tempering was heat absorption load better, while offering pleasing aesthetics. considered for the Additionally, on the currently proposed product the coating was moved to double curved panels, the outer side of the inner lite of the IGU, to reduce the solar absorption load but the size of the on the outer lite. A warm edge spacer made from flexible silicone is also used units, the quantity in order to avoid the risk of thermal stress breakage. of the units, the A laboratory physical test was carried out on the build-up to verify time required for the the suitability for the climate, before its installation on the building. This process and the overall included exposure to induce high surface temperatures, GASP surface stress cost necessitated measurement and test to failure. the consideration of other options.

The external glass To complicate the The external glass was designed by the Architects with a changing diameter situation, the building dot pattern, which is applied in stripes with an overall pulsating effect shape is such that the [Figure 8]. In 2007, the major concern was the number of different templates façade surface on one needed for the patterning process, and the pattern was optimized to reduce tower has a local lens the different screen templates to only 26 unique ones. Some templates were feature that focuses used “upside down” too, in order to increase variety and avoid noticeable reflected solar waves repetition. In 2014, further cost engineering and pattern optimization took and diverts them to place, allowing for “dot free” areas from certain internal vantage points. This the other tower. We resulted in 12 unique templates only. carried out a study This patterned coating was always intended as high reflectivity mirror using Ecotect, Rhino appearing silver dots, however finding products that both fitting the and Grasshopper budget and meeting the aesthetic requirements has been a long process.

[Figures 4 & 5], to Furthermore, since the low-E performance coat is ideally on the inner surface evaluate this effect. of the external lite for hot climates, patterning and removal of the template This study concluded or masking material had to allow for the low-E performance coat to be that the reflectivity applied on the same surface without compromising bond or quality. of the glazing was to The mirror frit on the glass was produced through a similar process to be kept in between ceramic fritting. A mirror-ink was applied on to the glass by silk screen

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ANALYSIS: Container Glass ADVERTISER FEATURE

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AG 16-5 asianglass

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ANALYSIS: Facades

printing to achieve the dotted pattern. Then the ink was dried on to the glass in a furnace prior to the low-e coating deposition. Finally the fritted panes were assembled into double glazed units with the printed surface as face 2 of the IGUs [Figure 9].

Developing the system

The external façade is a typical application of fully unitized system. However, the void façade needs to combine wall panels, skylight application and soffit elements within one large fluid seamless looking surface. Unitized panels were used for the vertical facades. The skylight was designed as a backdrained system, with glazed, subframe supported cassettes; and the soffit system used a stick frame assembly.

The unitized void wall cladding system incorporates curved elements, which follow the geometry of the curved edges of the double bent glazing.

The contractor has developed a very detailed 3D model that allows the exact geometry of the glass edges and the offset geometry of the framing to be extracted. For simpler bending and twisting, and for easier coupling and stacking of panels, a female-female system was chosen with more box like extrusions. To gain efficiency, the same extrusions were used for the flat external facades.

Figure 6. Blue glass alternative buildups. The development process aimed to find an optimum solution to offer the desired aesthetics while providing a safe, workable, performing solution.

Procurement

As a result of the worldwide search for capable facilities, the final strategy of the contractor is to source the double bent glazing from China, the bent aluminium from Denmark, the bent steel from The Netherlands, and assembling the parts in Dubai, UAE. At the time of writing this paper, production of the void façade parts has started and centralized coordination has been taking place to ensure that the separately produced elements will be subjected to similar methods of shape control and consistent labeling. Checking methods include digital shape scan, foam molds, digital measurement against agreed locations of stretched piano wire and comparison against computer-cut invert templates.

The edge of the skylight system’s subframe provides protection to the glass edges during handling. It is one of the measures taken in the design to reduce the risk of damaging, chipping or breaking double curved glass during site works, as these have long lead time to replace.

Conclusion and summary

The design and development phase of The Opus project has stretched over 9 years. Technology has advanced meantime and 3D modelling and manufacturing methods became more available and more widely applied. Unique pieces, whether it is a patterned print on the glass or twisting curved framing elements, are appearing on more and more projects. As architects continue to push the limits of design, step by step manufacturers are forced to develop and invest in the latest computer aided technologies and machinery. We are witnessing the “unique” transforming into the “usual”.

Figure 7. Performance values for some alternative 8mm -16air-6mm/ PVB/6mm buildups. Option #1 with dark blue bodytinted external lite with low-E coat exceeded the solar heat absorption limits, bringing thermal breakage risk. Option #2 with blue interlayer exhibited overly high external reflection, resulting in significant energy focalization for the geometry. Option #3 was developed with two lighter blue tinted lites to achieve the architectural intent of darker void glass appearance.

Acknowledgement

Over the past nine years, we have received great technical support, advice and test input from a variety of suppliers, contractors, tests labs, and I could not possibly list them all here. The final solution has been contributed by AluNasa, Shanghai Yaohua Pilkington and Brookfield Multiplex. Earlier research was assisted by Permasteelisa, Interpane, AGC, Saint Gobain, Xinyi Glass, Exova, GSK, Intertek, TUV. I also need to thank my colleagues at Koltay Facades, especially Guillermo Fernandez, for their active involvement.

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Figure 8 (left). Mirror dot pattern sample. Stripes of dots with changing diameter (20-80mm), giving an impression of pulsation when placed next to each other were envisaged by the architects. The pattern has been later adjusted to include 3 or less stripes.

Figure 9 (right). Mirror fritted glazing panels. The dots are applied on surface #2 and have very high external light reflectance to appear mirror like.

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ANALYSIS: Glass fibre

Strand & deliver ASEAN soars as economies grow Yogender Malik looks at how the development of the glass fibre industry in ASEAN is now gathering pace as growing economies throw up a wealth of new product uses.

G

lass fibre has been used by a variety of industries for over 50 years to pro-duce the polymer-matrix composites used in numerous products, including insulation, vehicle tires, and corrosion-resistant vessels for the chemicals in-dustry. However, ASEAN countries were previously quite slow to adapt to us-ing the material for a large part of this period. Indeed it is has only been since the early 2000s that fibreglass usage and production has started to pick up in these countries around the turn of the century.

Catered by half a dozen large fiber glass producers, the ASEAN fiberglass in-dustry continues to evolve on the back of steady demand from their respec-tive domestic markets. New technological developments and usage of fiber-glass in newer applications has been pushing the demand for fiber glass to new highs. Domestic producers in ASEAN region have scaled their

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operations in last few years to meet the new demand. However, large imports and on-slaught from Chinese suppliers have put great challenges in front of most of the ASEAN producers.

Most of the established names of global fiber glass industry such as Owens Corning, Saint Gobain Vetrotex, PPG Fiber Glass are present in the region through different arrangements ( Distributors, agents and subsidiary com-panies). Chinese producers such as Jushi Fiber Glass, Taishan Fiber Glass and Taiwan Fiber Glass too have been exporting their products in the region through similar arrangements.

Chinese fiber glass producers have a dominant share in the exports to the countries of the region. About 70 % of total imports in the four countries take place from China. Chinese dominance and price pressure could be under-stand from the fact that three years back, leading Thai fiber glass producer, Siam Fiberglass had to cancel its proposed fiberglass production plant in Vi-etnam in the face of huge Chinese imports in the country.

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ANALYSIS: Glass Fibre

Segmentation

Composites have emerged as one of the most important market for fiber glass producers. Global glass fibre reinforced plastic (GRP) composites market is expected to achieve a scale of about $ 50 billion by 2020, with Asian region showing the highest growth rates. Glass fibre accounts for about 90% of the reinforcements used in composites consumption, globally.

GRP composites are widely used in the transportation and infrastructure and construction sectors. The demand for renewable energy in the form of wind turbines, and for lightweight fuel efficient aircraft and cars, plus the demand for GRP pipe, tanks and other corrosion-resistant equipment, are major driv-ers for their increased use in the coming years.

Automotive and aerospace/defense sectors accounted for 49% (by value) of the GRP composites market in 2014. The highest growth is expected from the wind energy, aerospace and defense markets in the coming years.

Than Shein, General Manager of Micro Fiber Industries said to AG, “Demand of glass fiber rovings, which are used in wind turbine blades for wind power generators, has grown at a steady pace in last few years in the region. Malaysia, in particular has created a significant demand of these products.”

Than further says , “In comparison to rovings, demand of chopped strands, which found a number of uses in automotive industry has experienced at a steadier pace on the back of development of vibrant automotive industry in Thailand.”

On a cautious note, Shien adds, “Despite, the growth in fiber glass consumption most of the ASEAN fiber glass producers ( including us ) have been unable to expand their product mix to meet customers’ demands by expanding production scale in some products like wind energy, thermoplastic chopped strands, fabrics and mats, etc.”

Indonesia

foundation of our portfolio such as fiberglass reinforced plastic tanks and solid surfacing material. We have seen particular interest in our solid surfacing material brand, Bilionite, from the hotel and hospitality in-dustry.”

Wisnu further adds, “ Our customised products have considerable potential for export, with most of our existing orders in this field coming from the wa-ter management and cooling tower industry. We have been supplying fiber-glass cooling towers to clients based in Japan for the last fifteen years, and demand for this particular customised product is relatively constant. The scope of opportunities for customised products is very broad; we can manu-facture practically anything from FRP at our new factory. In addition to pro-ducing cooling towers, we have manufactured automotive parts as well as lo-comotive parts catering to clients across the world. We would also like to serve more companies in the smelting industry, and have the capability to produce customised stacks and chimneys.”

When queried about the regional markets, he says, “Our prefabricated bath-rooms also have potential on the international stage, and we are primarily interested in meeting the needs of regional markets such as Singapore. In the long-term, we see this product having success as far as Europe, given that prefabricated bathrooms allow for a much faster installation process and fa-cilitate greater efficiency during property development projects. As a com-pany able to cater to diverse needs for fiberglass products, our key strength in working with international customers is being able to form lasting, close partnerships.”

Production and Distribution of global fibre glass industry Region

Total fibre glass Production

Share of Global Production

China

4.1 million tons

55 %

600,000 tons

7.5 %

3.3 million tons

37.5 %

Indonesia, the second largest producer and consumer of fiber glass is served by half a dozen specialized domestic producers. Steady growth in down-stream industries is driving the growth of fiber glass industry in the country.

ASEAN

PT Gunung Putri Graha Mas

ROW

PT Gunung Putri Graha Mas was founded in 1982 as a producer of building materials before evolving into a manufacturer of customized Fiberglass Reinforced Plastics (FRP) and solid surfacing products. The company claims to be the first Indonesian FRP producer to be ISO 9001: 2000 certified and producing world’s largest FRP acid storage tanks. Building off of its early success, Gunung Putri Graha Mas undertook a substantial expansion, driven by rapid-ly rising domestic demand for fiberglass based products in line with the growth of Indonesia’s industrial and natural resources sectors. The company has recently relocated to a new 7,000 m2 factory in West Java facilitating the company’s readiness to serve a broad spectrum of clients requiring custom-ised fiberglass products.

With over three decades of experience in manufacturing products for both domestic and international clients including GE, Vale Inco and Veolia Water Technologies; Gunung Putri Graha Mas is well positioned as a mature player within the global fiberglass industry. The company claims that it has proved its credentials through successful international collaborations to create new, innovative products tailored to unique customer specifications and is now poised to explore further areas of application for fiberglass products to offer solutions to the domestic and global export markets.

According to Wisnu Sanjaya, General Manager of Gunung Putri Graha Mas, “ As was the case with many areas of business in Indonesia, the market for fi-berglass products experienced a slowdown last year because of the state of the global economy. Early signs suggest that activity will pick up again in 2016, with more construction projects and developments underway. For Gunung Putri Graha Mas, this is reflected in recent orders for products that serve as the

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Fiber Glass production in ASEAN Countries Country

2015

2014

2013

2012

Indonesia

131,000

127,600

125,300

121,000

Thailand

144,000

146,000

143,800

138,100

Vietnam

95,000

94,000

92,800

87,300

Malaysia

84,000

82,000

80,300

76,300

Fibre Glass consumption in ASEAN countries Country

2015

2014

2013

2012

Indonesia

153.400

149,100

146,200

141,300

Thailand

168,600

170,300

163,200

159,300

Vietnam

105,200

102,100

100,100

98,700

Malaysia

91,600

89,800

87,200

86,100

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ANALYSIS: Glass fibre

PT Induro International

Established in 1974, PT Indusro International is among the oldest fiberglass products producer in Indonesia. The company offers FRP and FRP anti cor-rosion equipment products such as chemical (storage/processing tank, ves-sel, scrubber, fume stack, chemical pipe, fitting & ducting) and general FRP products such as mass transport component (train, truck, bus), automotive component (motorcycle firing, car bumper/spoiler), construction and build-ing material (panel tank, septic tank, door/door frame, toilet/bathroom unit), etc from its three manufacturing units at Tangerang Banten.

Thailand

Largest fiber glass producer and consumer in ASEAN region, Thailand is served by half a dozen fiber glass producers. However, a lion’s share of the domestic market is controlled by top three producers. Imports form a large part of total consumption as all the products are not offered by domestic pro-ducers.

Siam Fiberglass

Siam Fiberglass ( SFG), a subsidiary of Siam Cement Group’s building materi-al business, which is Thailand’s largest producer of building products and a leader in the ASEAN region is a leading producer of fiber glass in Thailand. SFG was established in 1991 to produce translucent roof tiles and glass wool insulation.

Later in 1993, the company ventured into production of glass wool insulation.

Located at Nonplang (Nongkae) in Sarburi province, the state of the art production facility of Siam Fiberglass produces insulation products for domestic and export markets. The company caters the market of residential and commercial applications, acoustic applications and original equipment manufacturers. OEM products are supplied to the electrical appliance and automotive industries. The company claims that it is market leader in residential and acoustic applications in Thailand and export insulation products to most of the countries in ASEAN region.

Speaking about the challenges faced by fiberglass industry from carbon fi-bers, Worawit Sureesarakorn, plant manager of Siam Fiberglass Co Ltd says, “This is true that carbon fiber are presenting key challenges to glass fibers in some segments.

But, at the end of the day, the final product is made of com-posites, and we are all part of the composites industry. Second, as a glass fi-ber manufacturer, I see our main opportunity in the white space between ex-isting glass reinforcements and high-performance reinforcements. So for us it’s important to understand the new reinforcements and see how we can combine together, either via hybrid materials or via understanding the strengths of one side that can be brought to the other side and vice versa.”

Commenting on the current state of fiberglass industry in Thailand, Sureesarakorn says, “The total supply of glass wool insulation in Thailand is about 35,000 tonnes/ year, which is the biggest in ASEAN. Total domestic demand is less than 50% of supply.

Thailand has the most per capita insula-tion consumption in ASEAN but is still less than that of developed counties.

We are promoting the use of insulation in

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Thailand and ASEAN. Using insula-tion can help energy conservation, both in heating and cooling modes, which not only uses less natural resources but also reduces CO2 emissions.”

Microfiber Industries Limited

Microfiber industries Limited (MI) is a joint venture between foreign inves-tors and Thai stakeholders, who hold the majority shares ( 53 %). The opera-tion is managed by Thai management. The operation can be traced back to 1976, starting from the construction of manufacturing facilities at plant site located at Bangplee district of Samut Prakarn province.

During its early days, Micro Fiber Industries was known as Siam Glass wool Co., Ltd. but the fiberglass insulation products were sold under the trade name “Microfiber” which become so popular that the management decided to change the company name to Microfiber Industries Limited.

Asia Composite Material Company

Founded in the year of 2012, Asia Composite Material Company Limited is a producer of glass fiber chopped strand mat and woven roving manufacturer in Thailand. The company is located in Sino-Thai Rayong Industrial Park ., about 30 Kilometer from Laem Chabang port and about 100 kilometer from Bangkok, the capital of Thailand, which is convenient in transportation to both domestic and foreign customers. The company has an installed capacity to produce 14,000 TPA of chopped strand mat.

The company claims to own the most advanced chopped stand mat production line and woven roving machine, which has fully automatic computer con-trol and monitoring technology. The quality testing equipment and product quality tracking system ensure stable quality product.

Malaysia

Malaysian fiber glass market is domnated by Japanese Nippon Electric Glass.

Despite, the smaller size of the domestic market, Malaysian market holds a great potential due to its developed economy and healthy growth in downstream segments.

Nippon Electric Glass

Leading Japanese specialty glass producer, Nippon Electric Glass is among largest fiber glass producers in ASEAN countries. In order to better serve the ASEAN markets, the Japanese company has set up its manufacturing base in Malaysia.

The company has raised production of glass fiber used in auto parts by 30% at the Malaysian facility in mid 2015. Nippon Electric has invested about 20 billion yen ($194 million) to install an additional melting furnace and pro-cessing facilities at its Malaysian operations.

Besides Malaysia, Nippon Elec-tric Glass also produces the glass fiber at a plant in Shiga prefecture, shipping more than 300,000 tons combined annually from the two sites. In addition to catering to domestic glass fiber market, the output from Malaysia is

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ANALYSIS: ANALYSIS: Container Glass Glass Fibre ADVERTISER FEATURE

Glaston digitalises the heat treatment business

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ANALYSIS: Glass fibre

also sold to foreign manufacturers and the overseas operations of Japanese resin mak-ers. The company currently holds 30% of the global market for glass fiber used to reinforce resin.

According to Nippon Electric Glass, â&#x20AC;&#x153; The key product in our glass fiber business is chopped strands ( Made by bundling thousands of glass fibers and cutting them to a specified length) for reinforcing high function plastics, which are mainly used to make products such as automotive parts. Although, our business has been affected by slowing demand in Asian countries, but sales in other markets have been consistent.

Earlier in 2006, Nippon Electric Glass Co. had raised fiberglass output at this plant by more than 20% to around 160,000 tons. The factory, which had an installed capacity of about 130,000 tons a year, prior to the expansion had been working at full capacity to meet rising demand for resin-based auto parts for some time, which forced the company to undertake this expansion. The move was aimed at increasing supplies to China as well as to countries in the Association of Southeast Asian Nations and in Europe.

In an unrelated development, Nippon Electric Glass has entered into a preliminary agreement to acquire the PPGâ&#x20AC;&#x2122;s fiber glass business in Europe in June 2016. Through this transaction, Nippon Electric aims to expand its glass fiber business by fortifying its global supply capabilities by acquiring a pro-duction base in Europe. It aims to increase sales of chopped strands, main product of the company. NEG is also planning to add other glass fiber prod-ucts to the current lineup.

Currently, Nippon Electric Glass is working on three year medium term plan. For this, the company has set aside 50 billion yen for strategic investments such as M & A and alliances in addition to extending business through its own resources.

Quang Nam Mineral and Technology Company

Established in 2010, Quang Nam Fiberglass is one of the largest fiberglass producers in Vietnam. Set up with a total outlay of VND 16 billion, the 1,000 tones of fiberglass products plant is located in the coastal district of Thang Binh, Quang Nam province, which facilitate the company to export its prod-ucts with low transpiration costs.

Chinese Overcapacity Hurting ASEAN Producers

Much like the other sub-segments of glass industry, Chinese producers of fi-ber

Total glass fibre exports (2015, Kg)

Leading fibreglass producers in ASEAN region Company

Location

Country

PT Graha Adhi Jaya Abadi

Marunda, Jakarta Utara

Indonesia

PT Gunang Putri Graha Mas

East Java

Indonesia

PT Biofit Fiberglass

Tangerang Banten

Indonesia

PT Induro International

Tangerang Banten

Indonesia

PT Dragon Star Fiberglass

Surabaya

Indonesia

Asia Fiber Glass

Jakarta Barat

Indonesia

Cradotex Sdn Bhd

Penang

Malaysia

Atostech Fiberglass Sdn Bhd

Kualalumpur

Malaysia

Quang Nam Mineral & Technology Company

Thang Binh

Vietnam

Asia Composite Materials Company

Rayong

Thailand

Siam Fiberglass Company Limited

Saraburi

Thailand

Multi Fiber Manufacturing Company

Pathumthani

Thailand

JSBY Fiberglass Company Limited

Samut Prakan

Thailand

Microfiber Industries Limited

Samut Prakan

Thailand

glass has a dominant share of ASEAN fiber glass market. Slowdown in their home market and anti- dumping duties on fiberglass products in Eu-rope and India has made ASEAN as the most preferred market for Chinese producers.

In addition to the below mentioned dominant producers, there are 9 furnac-es in the country under cold rebuilding in the first half of 2016. With these furnaces in operation by early 2017, a about 600,000 tons of fresh capacity in China is expected to flood the already crowded Chinese market, a large part of which will reach ASEAN markets further affecting the domestic producers. Though, for end

Total glass fibre exports (2015, US$) Thailand

Philippines

Thailand

Philippines

Indonesia

Indonesia

Malaysia

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asianglass AG 16-5

Malaysia

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ANALYSIS: Glass Fibre ADVERTISER FEATURE

BAVELLONI S.p.A. MAKES ITS DEBUT AT GLASSTEC 2016

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AG 16-5 asianglass

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ANALYSIS: Glass fibre

Total glass fibre imports (2015, Kg)

Total glass fibre imports (2015, US$) Philippines

Philippines

Malaysia Thailand

Thailand

Indonesia

users it would result in availability of fiber glass at very competitive prices.

Jushi Group- China

Jushi Group is a leading fiberglass manufacturer in global fiberglass Industry and one of the largest supplier of fiber glass products in ASEAN re-gion.

It has three fiberglass production bases located in Tongxiang, Zhejiang Province, Jiujiang, Jiangxi Province and Chengdu, Sichuan Province in China, with a total investment of 15 billion RMB Yuan and total annualproduction capacity of 900,000 tons . The company has overseas subsidiaries in Brazil, Canada, Egypt, France, Hong Kong, India, Italy, Japan, Korea, Singa-pore, South Africa, Spain, and USA. In 2016 alone Jushi has made investments in two plants in North America and Egypt, which will add another 200,000 tons to its capacity by early 2017.

Though American facility is unlikely to make any dents for ASEAN fiber glass producers but it is expected that Egyptian capacity will find a ready market in ASEAN countries. Currently, Jushi exports 90 % of its output from the ex-isting plant in Egypt.

Jushi Group produces E-glass and C-glass fiberglass products including rovings, chopped strands, stitched combo mats and chopped strand mats, powder and emulsion chopped strand mats, woven rovings and electrical yarn and fabrics in over 100 product categories and over 1,000 specifica-tions. The company claims to export more than 50% of its production from China.

Taishan Fiberglass

Taishan Fiber glass is one of the main fiber glass manufacturers in China. The company manufactures and sells glass fiber reinforcement products used in a wide range of applications. Catering to domestic and export markets from its manufacturing plants in China, Taishan Fiberglass was founded in 1997 and is based in Taian city of Shandong province.

In 2013, Taishan had entered into a strategic alliance with leading global

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asianglass AG 16-5

Malaysia

Indonesia

producer, Owens Corning to grow the use of Alkali Resistant (AR) specialty glass products. Manufacturing for the alliance is based in China and support-ed

by Owens Corning global research and development centers which pro-vides product and application development for these specialty reinforce-ments. Taishan concentrates on the markets of China, ASEAN, Japan, Korea, South Africa and Saudi Arabia, while Owens Corning serves throughout the rest of the world.

Taiwan Glass

Taiwan and Mainland China based, Taiwan Glass is among top five suppliers of fiber glass in ASEAN markets. Taiwan Glass is a pioneer in development of highest quality of fiber glass products through its dedicated R & D team.

According to , Lin Por Fong of Taiwan Glass,” In fiberglass, our Lukang factory continues to develop ultra-thin fiberglass fabric to stay in step with the development of higher level mobile devices for the next generation. Our Taoyuan factory has invested in new R&D items of higher strength, higher abrasion resistance and higher density technical standards to develop the market of hightech products. Furthermore, Taiwan Glass’s TCD Factory has started production successfully. In general, TGI’s high-quality fiberglass fab-ric and fiberglass yarn are well received by internationally renowned manu-factures to use on high-end digital mobile products.”

PFG Fiber Glass (Kunshan) Co. Ltd

Founded in 2001 as a 50 : 50 joint venture of PPG Industries and Nan Ya Plastics Corp, PPG Fiber Glass ( Kunshan) is a leading producer of fiber glass in China.

With four furnaces, annual capacity of the operation in Kunshan is 144,000 metric tonnes of electronics-grade glass yarn and reinforcement-grade glass fiber. The companies also jointly own PFG Fiber Glass Corp. in Taiwan, which has three furnaces with approximate production capacity of 90,000 metric tonnes of mostly electronics-grade glass yarn.

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ANALYSIS: Facades

Death ray buildings why solar glare is causing architects headaches Vicente Montes-Amoros of CDC Inc. discusses some of the issues faced with modern building facades and claddings and how they can result in reflectivity and environmental issues for the immediate surroundings.

T

his article discusses solar reflectivity of recent skyscraper designs that employ extensive exterior glass paneling, which has caused negative outcomes, such as melting plastic car parts and creating hazardous glare to neighboring buildings and nearby traffic. Solar reflectivity can also raise surface temperatures on adjacent properties and kill vegetation. Building energy modeling can be invalidated if light reflected from neighboring buildings is not taken into account.

To date, different death ray buildings or fry-scrapers have made the news.

Cases like Vdara Hotel, Walkie Talkie Tower, Walt Disney Concert Hall and the ongoing battle between Museum Tower and the Nasher Sculpture Center.

Buildings need to address not only the interior environment but study the effects of building envelopes on exterior surroundings. Otherwise it cannot be classified as a sustainable project. Computational Fluid Dynamics (CFD) offer an advanced study that predicts not only the location of reflected light, but also the intensity of these reflections and the related temperature increase originated by the reflected light (see Figure 6). In this way, CFD can help designers limit solar reflectivity effects from their buildings (see Figure 0). And for large projects or iconic structures it is prudent to evaluate the potential risk of negative effects that this phenomenon could produce.

Contemporary world architecture incorporates extensive glass paneling in their designs that provide a balanced alternative between esthetics, cost, appearance, energy consumption, color, textures and etc. Glass offers a wide variety of performance levels for solar control, transparency, light transmittance and light reflectance, amongst others. Specifically referring to light reflectance one must be cautious when selecting glass for a project.

Glass reflectance, often refer to as reflectivity, in combination with building geometry, orientation, location and height, can cause issues to the surrounding environment by creating hazardous glare to neighboring buildings or nearby traffic. This phenomenon in which light is reflected off buildings back into the environment is called Solar Reflectivity.

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Fig 1. Car parts melted. Image courtesy of Laura Lean/City AM

The issue

The solar reflectivity topic has generated attention in the design world due to the appearance of “fryscrappers” or “death ray buildings” as refer to as by others. These alias comes from the Siege of Syracuse (214-212 BC) when Archimedes used an array of mirrors to set adversary’s warships on fire and got named the “death ray.” The principle is therefore, to concentrate reflected light on a small surface to increase temperature, like a magnifying glass.

The so called death ray buildings (officially two have been registered up to date) have several things in common. They both exhibit concave south-facing walls which happen to be all glazed, the reflectance of the glass used is excess of 40%, melted plastic, and raised temperatures nearby. One of this buildings is located in Vegas City Center and it raised temperatures by 10 degrees

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ANALYSIS: Facades

Celsius causing plastic bags and cups to melt. The second one is located in London’s Financial District and it raised ambient temperatures from 29 degrees Celsius to 72, surface temperatures of some materials nearby was recorded at 110 degrees. This building caused plastic components of a car parked nearby to melt, see Figure 1.

Other building materials like TPO roofs and metal panels Fig 0. Solar Reflectivity predictions using CFD can produce a similar reflectivity effect like what happened in Los Angeles with an all clad stainless steel metal panel Concert Hall façade.

Cases of melting gaskets in glazing systems, blistered paint, warping car consoles, tarps melted off buildings, and etc., are part of public records.

However, not all cases make the news and not all cases get the coverage and diffusion that a very few have gotten. Solar reflectivity can indeed be a nuisance and also produce severe and hazardous conditions that can jeopardize public safety. If this issue has already been recognized and recorded, why is the industry still silent about the topic? Why are there no limits or a widely accepted performance criteria?

Figure 2.

Reflections from a neighboring building enter the skylight screens in a Dallas museum. Image

by The New York Times.

Considerations

When trying to find the right measure or limit to effectively address solar reflectivity, several factors need to be considered: Discomfort to drivers. Drivers could be blasted by reflected light and get distracted which potentially could result in accidents. Cities located 40 degrees or more from the Equator represent a particular challenge because the sun’s natural position during the winter months is relatively low. At angles of less than 20 degrees, direct sunlight and reflections caused by sunlight can be within motorists’ cone of vision and produce glare.

Nuisance to neighbors.

A recent case in the Dallas Arts District was reported in 2012 where a residential high-rise building with highly reflective glass (in excess of 40% reflectance coefficient) casted reflections into a nearby museum. Reflections from the residential tower entered the museum’s galleries through a unique skylight design that was intended to allow only indirect sunlight (northern light). Reflected light’s intensity increased not only the temperature on the

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museum’s garden but exceeded light acceptable light levels to safely display some works of art. See Figure 2.

Energy modeling invalidation. Depending on the project’s context, intensity and duration of reflected light; a building’s adjacent properties could see additional thermal load that was not considered in the energy modelling.

Thermal loads. Reported cases like death ray buildings provide a good example of how thermal load can be increased by buildings. Temperature increase can also produce discomfort to pedestrians and at gathering places nearby.

Vegetation decay. Solar reflectivity will intrinsically produce and increase in heat to the surrounding environment. Intensity will depend on the material producing the reflection. Vegetation is already accustomed to their environment and is possible that with a sudden increase in heat, they can start to decay and eventually die.

Solar Spectrum. Light is comprised of different components, Ultra Violet (UV), visible light and infrared, refer to Figure 3. Human eye can only see the visible light portion from the solar spectrum. To get the most benefit from natural daylighting without unnecessary heat gain, some glass coatings prevent the infrared portion from getting into the building. Whatever is not transmitted through the glass to the interior of the building is reflected and send back to the environment, and that is not the visible light Fig 3. Solar Spectrum portion only.

Acceptance criteria

Categorically, only Singapore and Sydney, Australia have limit the effects of solar reflectivity. The building code in both cities stated that reflectance of construction materials is limited to 20% and that a solar reflectivity assessment/report must be submitted for approval.

The City of Dallas recently tried to modify their building code to address this phenomenon due to recent events in their Arts District. However, the proposal did not survive the public comment phase and the idea was abandoned.

Due to the lack of legislation or industry standard, this phenomenon is generally not addressed during design and cannot be easily resolved after it happens.

Considering that solar reflectivity can impact the visual and thermal aspect of a surrounding environment, different criteria/indices have been proposed but none is widely accepted or used. We have seen a handful of competing criteria/ indices with their own strengths and weaknesses.

Four different have been found.

The first criteria limits light brightness. Factors such as age, eye pigmentation, pupil’s ability to rapidly adapt to contrast are just some of the variables Fig 4. Solar Reflectivity effect in a Dallas, TX building that make tolerance

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ANALYSIS: Facades

Fig 6.

CFD used to predict surface temperature increase caused by solar reflectivity

Fig 5.

Surface temperature predictions. (Study limited to reflections from building indicated with the arrow).

to light brightness different for every person. Given these factors, limiting light brightness might not be the most objective criteria, not to mention that this limit does not address thermal load.

The second criteria found, limits reflectance of construction materials.

This limit is integrated to a couple of city building codes, as mentioned before, and can easily be met. However, complex building geometries can focus light which would produce solar reflectivity issues even with limits of this kind The third criteria limits thermal radiation. Although this limit can certainly be a more objective proposal because heat is measurable as well as its effects, one must be careful in selecting an appropriate threshold. Different levels of heat produce different effects. Some plastic materials have a melting point of less than 80 degrees Celsius and can be at jeopardy if a high threshold is selected. Surface temperature of materials like sealants or gaskets in glazing systems can rapidly increase when in contact with highly conductive metals in framing members.

The fourth criteria limits direct sunlight effect. By limiting the effect of reflectivity to no more than what direct sunlight produces could certainly result in conservative results, but plant species, materials and humans are accustomed to such nominal sunlight conditions. In using this criteria we can be certain that the effects of solar reflectivity would be limited and controlled.

This criteria addresses the visual and thermal aspect of the phenomenon.

Where next?

The study of solar reflectivity can benefit not only potential death ray buildings but regular shape buildings too (refer to Figure5). Pedestrian comfort and vegetationâ&#x20AC;&#x2122;s sustainability can benefit from this type of analysis by making sure that the proposed material or glazing is adequate for its surroundings. Although the solar reflectivity phenomenon has always been part of glazed projects, is until recently that designers and

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building owners are becoming aware of the issue, in part due to projects that have gone wrong. Technology now exist to model and predict anything that one can imagine. Technology and talent have demonstrated that any problem can be resolved.

Tall buildings are certainly an alternative in areas with limited space to build, and glass a relatively cheap material that serves many functions in an already size-reduced building skin system. But the problem is not building height or the amount of area covered with exterior glass paneling. Although both factors carry their own weight, the real problem is us. The real problem is that our contemporary designs we give little or no consideration to our environment and neighbors who are being affected by our lack of holistic building design.

Surprisingly, the study of light and reflection is ancient and although is a very well documented and studied topic we have not extrapolated that knowledge to our industry.

Why have not we seen an industry standard that limits the amount and intensity of reflected light yet? How many more death ray buildings need to happen to make the industry react? Is it really not important that some edifications are rendering energy modelling of adjacent properties obsolete due to the amount of added heat caused by their reflections?

The industry needs to step-in and propose limits to this nuisance.

It has been almost 10 years since the first solar reflectivity case was reported from a stainless steel panel façade, more than four years since the first death ray building and over a year since the second death ray building came to live. Demand for solar reflectivity studies has increased during the past 5 years which is just one indicator that heightens the need for an industry-wide acceptance criteria for solar reflectivity.

Glazing options available today do not compromise energy performance with the use of more benign glazing options. Contrary to common believe, buildings can still meet energy requirements with less reflective glass, as has been proven with recent designs across the globe. Therefore, if glazing products are not the limiting factor to mitigating this issue, the industry needs to react simply because architectural designs are becoming more complex in shape and geometry which can aggravate this situation.

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SPECIAL REPORT

In focus

SUN SHINES BRIGHTLY ON SOLAR GLASS

In a study made available to AG, and released by Dedalus Consulting, the impact of solar glass is seen as a major economic driver in the coming five years.

The solar industry accounts for only a small percentage of the 145m. global flat glass market currently, but it will double by 2020, with a compound annual growth rate (CAGR) of 13%.

There is tremendous growth opportunity in this area.

To put this in perspective, we expect the other end users to either maintain their place in the market or decline slightly, with the automotive and construction industries having a CAGR of 0% in the next five years and the furniture market experiencing a negative CAGR of 1%. On the other hand, the solar industry is positioned to be one of the most dynamic end users of flat glass not just for the next five years, but also for the foreseeable future.

The glass industry is poised to benefit from the growth of the solar industry, in particular, due to the fact that advances in glass and glass coatings have the potential to increase the efficiency of certain modules, thus making them more attractive to buyers. Some glass companies, such as Asahi Glass Co. and Nippon Sheet Glass Group (NSG), claim that their products can improve efficiency from 2.5% to 5.0%. Considering that efficiencies range from 6% to 20% on commercially available modules (depending on type), a 2.5% to 5.0% increase in efficiency due to glass advancements is remarkable.

Whatâ&#x20AC;&#x2122;s going on with the solar market in general that will lead to such growth for the flat glass market? With a renewed interest in alternative energy by many countries across the globe, demand for solar energy (and other renewables) will increase in every region in the coming decades. In 2015, approximately 57 GW of solar capacity was added to the grid, for a total of almost 225 GW of cumulative capacity.

By 2020, total installed capacity will more than double. With these projections, demand for glass in the solar industry will

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increase as gigawatts are added. Such rapid and sustained growth in this industry will affect all facets of the solar equipment market, including polysilicon, inverters, batteries and, of course, glass.

Both first- and second-generation solar panels use glass.

First-generation cells make up 90% of the solar market in general and 80% of the solar flat glass market (712 kilotons of the total 890 kilotons of flat glass produced in 2015 for solar applications).

Conversely, secondgeneration cells make up less than 10% of the market and 20% of the solar flat glass market.

However, we expect to see the most rapid growth for glass applications in second-generation cells, with a projected 940 kilotons produced for second-generation cells by 2020.

Frameless, or dualglass, panels encapsulate the cell in glass, as opposed to the traditional polymeric backsheet with an aluminum frame surrounding it. The backsheet has been replaced by another sheet of glass, essentially doubling the amount of glass used for the cell. In fact, due to the fact that there is no frame, the glass on these panels is often slightly

â&#x20AC;&#x153;the demand for solar glass will need to be met by not only existing companies, but also new entrants to the marketâ&#x20AC;?

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SPECIAL REPORT

ELECTROGLASS thicker in order to support the panel. Companies that manufacture frameless dual-paned panels claim that the products have a nicer look, are safer (due to the fact that there is no grounding needed), and enjoy a lack of potential induced degradation, making them theoretically more efficient. Frameless dual-paned panels are relatively new to the market. To date, only a few of the major companies have adopted these types of panels.

The major obstacle to frameless panels becoming more popular is that the lack of frame affects the entire balance of systems. This can be problematic for mounting systems and trackers. Some companies do offer systems for frameless panels, but these are still considered niche products.

There are several different ways to approach predictive modeling for the solar glass industry. One way to think about it is to simply calculate pricing per square meter of glass and factor in growth in gigawatts of the market.

One square meter of glass will generate between 150 W and 175 W, and it takes 6 million square meters of glass per gigawatt of solar energy. Solar glass pricing has been relatively volatile over the past five years, ranging from almost $11/square meter to a major drop due to oversupply. Two major factors will play a role in the solar glass market over the next decade: 1) Pricing â&#x20AC;&#x201C;pricing could fall from $11/square-metre from a few years ago and level off from the low of current years and then begin to steadily rise. This will result in a growing market for the solar glass industry, particularly if added capacity stays on the trajectory on which it is currently.

2) Dual-glass panels â&#x20AC;&#x201C; If dual-glass panels become more ubiquitous, the solar glass industry will grow at a significant rate.

Industry Dynamics What does the rise of solar glass mean for the flat glass market in general? Asahi, Guardian, Saint-Gobain, and NSG/Pilkington comprise over 60% of the flat glass market. All of these companies are major flat glass suppliers writ large, but the solar section of their production is very small. The industry dynamics are not currently conducive to these four maintaining their pre-eminence in the solar glass market. That being said, they are likely to maintain their edge in the glass market as a whole.

There are currently low barriers for companies to enter the solar glass market. With the solar industry increasing, the demand for glass will rise, and because the main glass companies are not focusing on solar glass, there is a void that can be filled with companies that are solely focused on glass products for the solar industry. Given that 70% of the modules produced today are currently built by Asian companies, we can expect to see many companies entering the market in the Asian-Pacific region due to transporting ease.

Even though solar glass makes up a small percentage of the flat glass market worldwide, we project that demand for solar glass will grow faster than any other end user of flat glass in the next five years. Due to an increased interest in renewable energy and over 100 countries instituting economic incentives for alternative energy advances, solar energy will see major growth in the coming years, and with that, advances in module technology will put a demand on solar glass that will need to be met by not only existing companies, but also new entrants to the market.

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Total float glass exports (sq metres)

Total float glass imports (sq metres)

Float glass imports from China

Total container glass exports (Kg)

Total container glass imports (Kg)

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Anaylsis

Refractory Zone

CUMI looks to US as China options shift focus World Murugappa Group firm Carborundum Universal Ltd (CUMI), which has its own operations in Russia and China, is looking at starting its operations in US. The company has various options including organic and inorganic modes of entry into the country.

The business opportunities in all the business sectors including abrasives and electrominerals are high in US and it is a lucrative market, said company Managing Director K Srinivasan.

“We have a sales operation at the moment in US and also sell to many large customers there, including ceramic products. But we do not have a large operating or manufacturing company in US, as of now. We are looking at various options, including whether we start some thing and do it, or whether we buy something.

We have not come to any firm conclusion and it is in the stage of ideation,” he said.

Earlier, speaking to analysts, he said that the company has a challenge in US and while the market is growing, the company has lost money there. At present, it sells all the products it has, in the abrasive, ceramics and electrominerals verticals and the overall business in the US market is roughly around $15 million of all the three verticals combines, out of CUMI’s consolidated sales of around $340 million.

The Board of Directors of the company has approved that the company should go ahead and invest up to about $5 million to improve its working capital requirement, etc, and to grow the US market, he told analysts.

“Significant part of that would be to grow the Abrasive business there and we have to work around and see how we are going to grow this in the US, because that not only is a big market but also allows you to work with some of the high end customers and that will allow you to make products or co-create products which will eventually also be useful in other parts of the world, so that we are mindful of it,” he said.

This is true for Abrasives as well as the other parts, he added.

Founded in 1954 as a tripartite collaboration between the Murugappa Group, The Carborundum Co, US and the Universal Grinding Wheel Co Ltd, UK, CUMI manufactures coated abrasives, bonded abrasives, super refractories, electro minerals, industrial ceramics and ceramic fibers. .

Meanwhile, the company is optimistic about emerging from losses in its business in China by changing its business model there.

The company’s new strategy is to toll manufacture, manufacturing in third party plants with its own people controlling the quality, for select products and address the mid segment of the abrasives business, while the premium products will be exported from India to China.

The company has been trying various options in the operations in China, since the country accounts for a significant percentage of all the manufactured goods at the world and is a significant market for the company.

“We have to learn to compete, we have to learn to collaborate, and we have to learn to work in China. We

have been at it now for at least 20 years and I think we have now evolved into is to not try and make products there the way we did earlier. We realised there is an asymmetry of cost for manufacture between multinational company and the local Chinese company,” said K Srinivasan, managing director of CUMI to the analysts recently.

The company is trying to have the advantage of its own technology, knowledge and people but have the cost advantage of a Chinese manufacturer. It has stopped captive manufacturing, sold the facility and started getting its products made to the required specification, design and inputs by third party manufacturers who are contracted or toll manufacturers where the company has its own people implanted into their system so that they control the quality, the process and the output. It has also taken other steps to improve sales, which has resulted in lower losses in China by Rs 1 crore during the quarter ended June 31, 2016.

The losses in China has been Rs 10 crore annually.

The company is expecting this to come out of losses and grow to profit in future.

The company manufactures in China the products specific to supply to Chinese market as well as to export some of it into its global operations. It is playing in the mid-premium segment in China and while the mid segment will get manufactured there, the high-end premium products which it globally supply will still be made in India and shipped out there for sales and support, said the officials.

Imerys blocked in andalusite move South Africa After a lengthy period of litigation before the competition authorities, the Competition Tribunal (Tribunal) has prohibited the proposed acquisition by Imerys South Africa Proprietary Limited (Imerys) of Andalusite Resources Proprietary Limited (AR).

In January 2015, the merging parties notified the Competition Commission (Commission) of the intermediate merger in terms of which Imerys intended to acquire the entire issued share capital in AR. Imerys and AR are involved in the mining, processing and sale of andalusite and are the only two parties that mine and supply andalusite in South Africa. Andalusite forms part of the alumina-silicate group of compounds.

Alumina-silicates possess heat-resistant properties and are widely used in the production of refractories for high-temperature industrial processes. Refractories are particularly important to the local steel production industry.

During the course of the merger investigation, interested third parties provided submissions to the

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Commission. In particular, producers and end-users expressed concern that they would be deprived of a competitive choice between Imerys and AR and that there was a high probability that the merged entity would increase the price of andalusite or divert andalusite sales from South Africa to export markets.

As a result of such concerns, in April 2015, the Commission decided to prohibit the proposed merger.

In May 2015, the merging parties referred the matter to the Competition Tribunal (Tribunal), requesting that the merger be considered afresh. The hearings took place over several months from May 2015 into August 2016. The theory of harm raised by the Commission was that the transaction would be a “merger to monopoly”. The Tribunal agreed, noting that the “two to one merger” would lead to a monopoly in the mining, processing and sale of andalusite in South Africa, and also a near-monopoly in the global sale of andalusite.

Since barriers to entry in the mining, processing and sale of andalusite in South Africa are high, there is no

realistic prospect of new entry in the foreseeable future, even if the merged entity did increase prices.

The Tribunal determined therefore that the proposed transaction would involve a permanent structural shift in the andalusite market reducing the number of participants in South Africa from two to one, and would result in a substantial prevention or lessening of competition. Moreover, the proposed transaction raised significant public interest concerns, specifically from a small business and an industrial sector perspective.

The proposed transaction had the potential to remove an effective competitor leaving the market without an alternative supplier of andalusite. In turn, this would have a direct impact on producers of refractories, as the iron and steel industries consume the vast majority of alumina-silicate-based refractories. It is also difficult to envisage how the proposed transaction would enable the merging parties to become more competitive globally given that they are currently the main players in the global market for andalusite.

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SP EC IA LR EP OR T

Refractory Zone

Burning ambition In the latest of his exclusive pieces for AG, refractories guru P.Carlo Ratto discusses the issues facing making an accurate, informed decision on product choice when going for a cold repair.

In the last 12 months, according to the Association of China Refractories Industry, the national output of refractory products was 26,151.9kt, decreasing by 6.51% compared with last year. Among them, the output of dense shaped refractory products is 15,278.6kt, decreasing by 7.75%, the output of thermal insulating refractory products is 473.5kt, decreasing by 10.03% and the output of unshaped refractory products is 10,399.8kt, decreasing by 4.44%.

As for the export in 2015, the total value of import and export of refractory raw materials was US$3,062 million, decreasing by 14.01%. Among them, the export value was US$2,903 million, dropping by 12.85% and the import value was US$159 million, dropping by 31.08%.

In 2015, the total export and import volume of refractory raw materials was 5,164.3kt, decreasing by 8.77%. Among Them, the export volume of refractory raw materials was 3,446.2kt, dropping by 9.28% and the export value was US$1,543 million, dropping by 14.08%. The export volumes of the fused magnesia and sintered magnesia were 301.8kt and 541.1kt (842.9kt in total), decreasing by 18.24% and 18.41% respectively. The export volumes of refractory alumina clay, brown fused alumina and white fused alumina were 843.1kt, 515.6kt and 161.9kt, dropping by 2.93%, 16.32% and 16.54% respectively. The export volumes of graphite and silicon carbide were 106.8kt and 314.8kt, dropping by 11.76% and 1.56% respectively.

In 2015, the export volume of refractory products was 1,718.1kt, dropping by 7.74% and the export value was US$1,359 million, dropping by 11.40%. Among them, the export value of basic refractory products was 824.4kt, dropping by 17.47%, the export value of alumina silica refractory products was 731.5kt, increasing by 1.35% and the export value of other refractory products was 162.2kt, increasing by 14.53%.

Downstream pressures

In terms of the domestic steel industry in 2015, the output of crude steel was 804mt, dropping by 2.33% but for the last year, the output increased by 0.9%. The output of rolled steel was 1,123 mt, increasing by 0.56%, with the growth rate dropping by 3.9%. Internationally, according to the World Steel Association, the global output of crude steel in 2015(including 66 countries and regions) reached 1,600 mt, dropping by 2.9%. Among them, Asian output of crude steel was 1,097 mt, decreasing by 2.2%, accounting for 68.55% of global steel output, with Chinaâ&#x20AC;&#x2122;s output of crude steel accounting for 50.24% of the global total crude steel.

In terms of the building materials industry in 2015, output of cement was 2,348 mt, decreasing by 4.9% but for the last year, the output increased by 1.8%. Output of flat glass was 739 million cases, dropping by 8.6% but the output grew by 1.1% in the last year.

As for the non-ferrous metals industry in 2015, the output of 10 kinds of non-ferrous metals was 50.9 million tonnes, increasing by 5.8%, with the growth rate dropping by 1.4%. Among them, the output of electrolytic aluminum was 31.41 million tonnes, increasing by 8.4%, an increase of 0.7% compared with last year; the output of copper was 7.96 million tonnes, increasing by 4.8%, a decrease of 9%, the output of lead was 3.86 million tonnes, decreasing by 5.3%, a decrease of 0.2%, the output of zinc was 6.15 million tonnes, increasing by 4.9%, a decrease of 2.1% and the output of alumina was 58.98 million tonnes, increasing by 9.6%, an increase of 2.5%.

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Demand drivers

Both the outputs and profits of major downstream industries dropped. As mentioned above, in 2015 the output of major downstream industries of 10 kinds of non-ferrous metals rose by 5.8% (growth rate decreased by 1.4%) compared to the last year, while outputs of crude steel, cement and flat glass industries decreased by 2.3%, 4.8% and 8.6% respectively. In particular, steel industry and cement industry met negative growth for the first time in the past 30 years and 25 years respectively.

In addition, the profits of downstream industries dropped dramatically. In 2015, the entire steel industry suffered losses, and the statistics showed the sales revenue of key steel enterprises was RMB2.89 trillion, dropping by 19.05% compared with that for last year. The profit and tax was RMB -1.3 billion and the profit was RMB -64.5 billion, with 50.5% of the enterprises suffering losses, an increase of 33.67%. The non-ferrous metal industry realized main business revenue of RMB 5.73 trillion, an increase of 0.2%. The profit was RMB179.9 billion, decreasing by 13.2%, but the nonferrous metal processing industry realized profit of RMB108.04 billion, an increase of 2.5%. The main business revenues of cement and flat glass manufacturing industry were RMB889.7 billion and RMB59.6 billion, with the decrease of 9.4% and 14.3% respectively. The profits were RMB33 billion and RMB1.2 billion, respectively, decreasing by 58% and 12.4%.

The major downstream industries are facing the double pressure of overcapacity and weak market demand. At present, all major refractory downstream industries have the problem of overcapacity, with capacity utilization of 70%~75% in recent years. In the steel industry, for example, in the fourth quarter of 2015, the CIF price of imported iron ore was about US$40 per tonne, far below the production costs for domestic mines iron ore, together with a decline in coal prices, the profit margin of steel enterprises should have been improved. However, as a result of overcapacity, the price of steel products has always been hovering around the product cost, leading to the loss of entire industry.

Similar to the steel industry, the spot market prices of copper, aluminum, lead and zinc of non-ferrous metals industry fell by 16.8%, 10.2%, 5.5% and 4.1% respectively. The scaled non-ferrous metals industrial enterprises realized main business revenue of RMB5.73 trillion, an increase of 0.2% compared to the last year and the profit was RMB179.9 billion, dropping by 13.2% (21% of the enterprises of the industry suffered losses). But what worth noticing is that the nonferrous metal processing industry realized profit of RMB108.04 billion, an increase of 2.5%, which accounts for 60% of the entire industry. The economic benefits of non-ferrous metal smelting industry related to refractory materials may suffer greater profit decrease.

The main business revenues of cement and flat glass industries decreased by 9.4% and 14.3%, with profit margins decreasing by 58% and 12.4% respectively.

Traditional industrial market demand decline. With the slowdown in the national investment in fixed assets, the demand growth of real estate, automobiles, home appliances and other consumer applications decreased at different degrees. Among them, new housing construction area decreased by 14%, household electrical appliance industry sales rate dropped by 1.2% and output growth rate of automobile industry fell by 4%.

Therefore, the market demand prospect of traditional industry consumption is dim, especially the consumptions related to infrastructure construction, such as steel, cement, glass and non-ferrous metal industries declined.

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