Asian Glass - AG16-6 Edition

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AG16-6

SHINING BRIGHTLY SOLAR GLASS IN ASEAN

7 1 0 2 r u o Y r e n n a l p r y ea E D I S N I F R EE

PLUS!

Inside:

China float glass SE Asian packaging p2 Lighting glass in India

news, views, analysis and much, much more!

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Contents: AG 16-6 Regulars

Features

4 Welcome

26 SE Asian packaging round-up: p2

Boost for Indian container glass.

6 Headline News

Openings, closures and industry moves from across Asia.

12 Global View

Our eye on the international arena.

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

22 Batch Raw material news and views.

24 Comment & Analysis Europe builds the Chinese wall.

In the second, and concluding, part of our focus on the glass packaging industries of ASEAN, Jahir Ahmed discusses how the region’s container sector is matching up to demand expectations.

36 Lighting glass in India

Rohan Gunasekera discusses how changing illumination technology in southern Asia is having a knock-on effect for the region’s lighting glass providers.

42 China float focus

Jason Sim talks to Asian Glass about how China’s float industry is going through dramatic changes.

46 Freight in focus

Albert Balke, Faymonville Distribution AG, Weiswampach / Luxembourg discusses some of the latest innovations in freighting float glass.

52 Automotive glazing

Cédric Janssens, of Glass for Europe, discusses the role of glass in reducing CO2 emissions from vehicles, and how this might affect future demand. With Asia likely to follow suite, the potential for shifts in auto glass market there are clear...

46 26 Your favourite magazine is now available at the App Store… download today to see your first sample issue!

Asian Glass: now for mobiles, ipads and androids 2

asianglass AG 16-6

Anaylsis 60 In Focus

How the largest Chinese automotive glass manufacturer, Fuyao, is accelerating its global growth with highly automated and networked systems. European CEO of the company, Norbert Geisinger, talks to AG...

62 Window

Analysis and insight into China.

66 Refractory Zone

Lance Caspersen, from Morgan Advanced Materials, examines the main factors for specifying castable refractory insulation systems. www.asianglass.com

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Welcome

T

he Container glass industry in India has received a shot in the arm as an Indian government study has found five different toxins — heavy metals antimony, lead, chromium and cadmium and the compound DEHP or Di(2-ethylhexyl) phthalate — in cold drinks produced and packed in PET bottles by two major multinational companies, PepsiCo and Coca Cola.

CONTACT DETAILS

AG16-6

EDITORIAL

SHINING BRIGHTLY SOLAR GLASS

Publishing Director Andy Skillen Email: askillen@asianglass.com Direct line: + 44 (0) 208 123 0196 Fax: + 44 (0) 207 183 7196

IN ASEAN

Y ou r 2017 yea rpla nne r F REE INS IDE

PLUS!

ADVERTISING AND DESIGN

Inside:

China float glass SE Asian packag ing p2 Lighting glass in India

news, views, analysis

and much, much mor

e!

The results of the test, conducted in February-March this year, but for which the results have just been made available, also show a significant increase in leaching with the rise in room temperature. The study, commissioned by the Indian Health Ministry body, the Drugs Technical Advisory Board (DTAB), found that these toxins leached into five cold drink samples picked up for the study — Pepsi, Coca Cola, Mountain Dew, Sprite and 7Up — from the PET bottles they were in.

Advertising Sales Valerie Adamson Email: vadamson@asianglass.com Direct line: + 44 (0) 208 133 5273 Paul Russell Email: prussell@asianglass.com Direct line: + 44 (0) 208 638 0619 Production and design Tim Mitchell Email: tim@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

RESEARCH

PepsiCo India and Coca Cola India declined to respond to Asian Glass queries. While Query sent to PET Container Manufacturers Association remained unanswered.

Research Manager Alex Murphy Email: amurphy@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

While there are no permissible limits for heavy metals in cold drinks, the tests found 0.029 milligrams per litre (mg/L), 0.011 mg/L, 0.002 mg/L, 0.017 mg/L and 0.028 mg/L of antimony, lead, cadmium, chromium and DEHP, respectively, in Pepsi. In Coca Cola, 0.006 mg/L, 0.009 mg/L, 0.011 mg/L, 0.026 mg/L and 0.026 mg/L of the aforesaid heavy metals, respectively, were found. The results were similar for Sprite, Mountain Dew and 7Up.

EXHIBITIONS AND CONFERENCES

The leaching of these heavy metals — from the PET bottles in which the drinks were packaged — increased with the rise in room temperature. For example, at normal room temperature, the tests found 0.004 mg/L and 0.007 mg/L of lead in 7Up and Sprite, respectively. However, when it was kept at 40 degree Celsius for 10 days, the lead increased to 0.006 mg/L and 0.009 mg/L, respectively.

The World Health Organisation (WHO) considers lead and cadmium two of the top ten chemicals of “major public health concern”. According to the WHO, children are particularly vulnerable to harmful effects of lead. “Lead can have serious consequences for the health of children. At high levels of exposure, Lead attacks the brain and central nervous system to cause coma, convulsions and even death. Children who survive severe lead poisoning may be left with mental retardation and behavioural disorders,” the WHO has noted.

As pressure builds on the glass packaging industry globally, perhaps the intervention of such a report will provide some welcome respite.

Happy New Year!

Contact the team on: Email: events@bowheadmedia.com Direct line: + 44 (0) 208 123 0839

Bowhead events Creating Opportunities: Delivering Results OVERSEAS OFFICES

China Professor Wen Lu and Wen Xin Email: 18980921123@163.com Tel: +86 28 8701 9077 Fax: +86 28 8701 9077 Bangladesh Jahir Ahmed jahir@asianglass.com India Yogender Singh Malik yogender@asianglass.com Sri Lanka Rohan Gunasekera rohan@asianglass.com

HEAD OFFICE Andy Skillen Publishing Director

Got a general enquiry? use enquiries@asianglass.com 4

asianglass AG 16-6

Bowhead Media Ltd, 57 Oaks Avenue, Worcester Park, Surrey, KT4 8XE United Kingdom Asian Glass (ISSN: 1475-6501), is published by Bowhead Media Ltd, registered in the UK no: 6127651

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HEADLINE NEWS ASIA ARC to construct new plant by 2018 Russia Leading global tableware glass producer Arc International is setting up a new tableware glass plant in the Kaliningrad region of Russia. The 53000 TPA plant is expected to start by early 2018.

The company has got an infusion of USD272 million from a group of private investors for its existing expansion exercises and setting up a new production plant. A group of private investors led by Russia’s sovereign wealth fund has agreed to invest $272 million in leading global glassware manufacturer Arc. Other investors include France’s

CDC International Capital and Bahrain Mumtalakat.

The companies preliminarily agreed to the Arc investment in June, and to date have completed the “first drawdown” of USD 54 million.

The proceeds will be used

by Arc to implement its global investment program to accelerate its growth, including the modernisation of its facilities in France, expansion of its existing production facilities in Russia and construction of a new state-of-theart glassware plant in Kaliningrad.

Kaliningrad plant is coming up with estimated investments

amount to RUB 6.5 billion.

Construction of the plant is expected to start by the end of 2016 on a 45 hectare section of the industrial park leased by Arc International from the Kaliningrad region government.

The plant with an installed capacity of 53,000 TPA will commence commercial production in early 2018. The plant will produce table glassware made of common and toughened opal glass and will become the first plant producing glassware made of opal glass across the CIS countries and Eastern Europe.

Guardian sells out to KGIC

According to Arc International, "In addition to Kaliningrad investment, we have started production of fine unleaded crystal glass in France. We are delighted with the very positive customer reaction, and this investment with the strong support of both Russian and French governments will help us to build capacity and improve efficiency in all our plants so that we can continue to deliver great products at affordable prices to all of our customers and respond to the overwhelming market demand."

PPG completes glass fibre sale

Region Guardian Industries Corp. announced Monday that its shareholders have approved the sale of the company to KGIC Merger Corp., a wholly owned subsidiar y of Wichita, Kan.-based Koch Industries Inc. The deal is a cash transaction for the 55.5 percent of outstanding shares of Guardian Industries' common stock not already owned by affiliates of Koch.

Terms of the deal were not disclosed. "... we have benefited a great deal from Koch's robust guidance and infrastructure since its initial investment in 2012," Ron Vaupel, president and CEO of Guardian, said in a news release. "Our companies align in many areas, including culture, global footprint and supply chain. We are excited to continue working together to create value for our customers and society."

Charles Koch, chairman and CEO of Koch, said "Guardian is

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asianglass AG 16-6

a world-class organization and a leader in providing innovative products. This acquisition fits well with our culture and core capabilities. We look for ward to Guardian fully joining the Koch Industries family."

Guardian Industries is a privately held, diversified global company that employs about 17,000 people and operates facilities throughout North America, Europe, South America, Africa, the Middle East and Asia.

Guardian Industries was founded in 1932 as Guardian Glass Co. a family-owned supplier of windshields for the auto industr y. In 1957, William Davidson, a member of the family and a lawyer with expertise in turning around struggling companies, was named president of the company. He guided it through bankruptcy and in 1968 changed its name to Guardian Industries.

In 1974, Davidson bought the Detroit Pistons. He died

in 2009.

Guardian companies manufacture glass products for a variety of uses, as well as coatings on plastics for the automotive and commercial truck industries and distributes specialty building products.

Earlier this month, Guardian Industries was named one of Crain's most innovative companies.

Koch Industries is one of the largest private, highly diversified companies in America, with estimated annual revenues as high as $100 billion, according to Forbes.

Since 2003, Koch companies have invested about $80 billion in acquisitions and other capital expenditures.

With a presence in more than 60 countries, Koch companies employ more than 100,000 worldwide, with about 60,000 in the U.S. The transaction is subject to antitrust approval and expected to close in the first quarter of 2017.

Taiwan/USA Coatings specialist PPG Industries has completed the sale of its stakes in the two 50:50 glass fibre joint ventures trading as PPG Fiber Glass (PFG) to its jv partner Nan Ya Plastics Corp. The sale for USD 170m to the subsidiary of Formosa Plastic Group includes two plants at Chia Yi / Taiwan and Kunshan / China supplying electronic yarn fibres used in integrated electronic circuit boards and fibre glass reinforcements for automotive applications.

This deal and the earlier divestment of plants in Wigan / UK and Hoogezand / The Netherlands specialised in the manufacture of direct roving and chopped glass fibres leave PPG with five glass fibre production facilities, alongside a flat glass business in North America.

Together these businesses accounted for only around 7% of the company’s 2015 sales of USD 15 bn (EUR 13.6 bn) in 2015.

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DTI hits Chinese glass imports

India

Philippines The Department of Trade and Industry has slapped provisional antidumping duties as high as 87 percent on float glass imports from China as these were found to be causing serious injury to Philippine glass manufacturers.

Based on an order signed on Nov. 7 by Trade Secretary Ramon Lopez, the DTI slapped duties ranging from $44.55 to $142.23 a metric ton on clear float glass imports from Chinese exporters, which included Rider Glass Co., Xinyi Group Glass.

The DTI also slapped provisional duties of $23.06 to $104.09 a MT on bronze float glass imports from China.

“The corresponding provisional antidumping duty in the form of a cash bond will be imposed for a period of four months from the effectivity of this order on importation of clear and bronze float glass originating from (China),” the order stated.

According to the order, the antidumping petition was filed by AGC Flat Glass Philippines Inc., which alleged that the “clear float glass and bronze float glass are being imported from (China) at dumped prices and that as a

Firzobad falters as cash crisis hits

result thereof causes material injury to the domestic industry producing like product.”

The DTI has already endorsed the case before the Tariff Commission, which already started a formal investigation.

The commission will determine whether there is a need to impose a definitive antidumping duty.

Since the antidumping duties are only provisional, this meant that the amount paid for by the importers can be returned to them should the case be dismissed.

In 2015, the Philippine flat glass industry, represented by the AGC Flat Glass, had sought the reimposition of safeguard duties on imported float glass to give local players more time to implement their adjustment plans and efficiency measures.

Ronnie C. Matas, executive vice president for sales and marketing at AGC Flat Glass, explained in a previous hearing at the Tariff Commission that the local industry players had encountered challenges beyond their control and which had hampered their “adjustment plans” to make their respective operations more competitive.

As many as 10 big factories in Firozabad have been shut in the past two days due to shortage of cash flow, following the demonetisation of big currency notes. Factory owners have been unable to pay wages to hundreds of labourers. There is a growing resentment among industrialists who said the currency ban, causing hassles to people and putting their business in jeopardy, could have been implemented in a better way.

Industrialists said if cash flow did not increase in the coming days, more and more factories would have no option but to shut down. "Ten factories have closed so far due to non-payment to workers. There is a need of around Rs 1 lakh in cash per day to be paid to daily wagers.

In some factories, where work was going on till Friday, workers had given an ultimatum," said Hanuman Prasad Garg, president of the Glass Industrial Syndicate.

"In the wake of the currency crisis, almost all factories have suffered huge business losses. A small factory on an average loses Rs 50,000 in business in production alone.

NSG to install new bending line Japan Japanese flat glass major, Nippon Sheet Glass Co., Ltd. will install a new high-performance press bending line at the Maizuru plant in Kyoto, Japan for automotive windshields, applying its proprietary technologies. The construction will start in the month of November and the start-up is planned next year.

Press bending is a type of glass-shaping process, in which heated glass is pressed in a mould sheet by sheet.

Compared to sag bending where glass is shaped on

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a mould by its own weight, press-bending is more suitable for windshields demanding a complex three-dimensional shape which perfectly and accurately replicates the vehicle makers’ design.

Automotive windshields are increasingly equipped with new functionalities such as advanced driver assisting sensors, cameras and headup displays. These advanced applications require windshield glass with high surface accuracy and without distortion to ensure

precise image projection and enhanced sensor recognition.

The roles glass is required to play are expected to broaden in future with a view to the fusion of automotive technology and the intelligent transport system (ITS) technology.

According to Nippon Sheet Glass, “Since our proprietary press bending process provides excellent shaping capability, the expansion will enable us to respond to the growing demand for high performance windshields in coming years.”

The government took the decision in haste, causing huge losses to the industrial sector," Garg added.

"Demand has also fallen because customer numbers have gone down, causing further damage to industry.

Old payments have also not been received, while supply of raw materials and transport of goods have also been drastically hit. It will take us a long time to recover from these losses.

On the other hand, workers are struggling to make ends meet," said P K Jindal, another glass industrialist.

Puran Dawar, president of Agra Footwear Manufacturers and Exporters Chamber, said, "The footwear industry is also facing problems in paying employees.

We are helping our workers with bank transactions and, wherever possible, paying them through cheques. We appreciate the government's move, but there should have been some provisions for withdrawing our own money from current accounts. This would have spared workers from the crisis they are facing."

News, views and analysis

www.asianglass.com AG 16-6 asianglass

7

News

Borosil makes second acquisition India Leading tableware and laboratory glass producer from India, Borosil Glass has made its second acquisition of the year. The company has acquired a 60.3% stake in Klasspack, a pharma glass producer based at Nashik in the state of Maharashtra for an undisclosed amount to enter the primary pharmaceuticals packaging business.

Klasspack makes glass

ampoules and tubular glass vials which is used as primary packaging materials by pharmaceutical firms. With compliance becoming increasingly stringent in the Indian pharmaceutical sector, Borosil plans to combine its technological expertise in specialty glass production with Klasspack’s experience in glass ampoule and tubular glass vial production.

Klasspack’s turnover is around Rs 30 crore. This is Borosil’s second acquisition this year. In January, it acquired Hopewell Tableware for Rs 27 crore to enter the ceramic tableware business.

“Our investment will help Klasspack ramp up facilities and production to give our pharmaceutical customers a choice for sourcing their pharmaceutical packaging

needs,” according to Shreevar Kheruka, managing director of Borosil Glass.

“Klasspack will benefit from Borosil’s brand equity and market reach, while Borosil will be able to leverage Klasspack’s manufacturing set-up and product development capability to expand their product portfolio," says Klasspack managing director Prashant Amin.

Eurasia Glass readies for opening Turkey Eurasia Window, Eurasia Glass and Eurasia Istanbul, Turkey’s and Eurasia’s largest international trade fairs in the sector will open their doors to visitors between March 8-11, 2017 at TUYAP Fair, Congress and Convention Center, Istanbul, Turkey.

The fairs which have completed the majority of sales will take place with wide participation of the industry’s leading foreigndomestic companies and company representatives. As a result of our effective marketing activities, the fairs will provide an optimal environment to showcase products and meet with target buyers for participants who want to expand into new markets and to increase their market share. While we are approaching the end of our fair promotion and marketing activities including all relevant as industry professionals, NGOs, government agencies, media and educational institutions, we are

speeding up special invitations and hosted buyer programme from all around the world.

There are very effective promotional activities from CIS to MENA through Tuyap overseas offices operating in neighboring countries and global network of agencies from all over the world. Our experienced team continues with hosted buyer organizations in their regions to bring together exhibitors with their target audience. Furthermore, promotional activities continue via related trade associations, publications and online portals.

Purchasing committees are

created for the exhibitions in collaboration with chambers of industry and trade domestically.

We have been in contact with important market players by visiting every inch of Turkey to bring together participating companies and right buyers. Our promotional activities which we execute on mass media since 2016 shows will continue increasingly until the opening day of the fairs.

The exhibitions attended by 665 company and company representatives from 26 countries in 2016 achieved to host professional visitors from 112 countries. The fairs have become the center of attraction for professionals from all over the world and offer unique opportunities for companies who wish to get a share of the global market and stand out from the competition.

A special section in Eurasia Window Fair which is a showcase

for aluminum industry will host leading aluminum profile, facade systems and accessory companies in the special hall prepared for aluminium sector.

Aluminium Special Section escalates its attractiveness each year. Eurasia window widens its scope in order to meet the expectations of industry professionals with the special section.

Eurasia Window, Eurasia Glass and Eurasia Door will be held at TUYAP Fair Convention and Congress Center and can be visited between 8-11 March, Wednesday, Thursday and Friday from 10:00 to 19:00 and on 11 March, Saturday from 10:00 to 18:00.

Please visit www. eurasiawindowfair.com , www. eurasiaglassfair.com , www. eurasiadoorfair.com websites for further information and online invitation.

Sisecam takes on Italian assets Turkey Şişecam Group has announced that its group member Trakya Cam Sanayii A.Ş. has acquired all assets of Italy-based flatglass manufacturer Sangalli Vetro Por to Nogaro for a gross of 84.7 million euros, before reduction of deduction of debts. By acquiring Sangalli, which has an annual production capacity of 220,000 tons,

8

asianglass AG 16-6

Şişecam has the largest flat glass capacity in Europe, according to company officials in a release.

Prof. Ahmet Kırman, Deputy Chairman and CEO of Şişecam Group, says that the acquisition in Italy would create synergies with the group's flat-glass operations in Bulgaria, and would increase the group's

competitiveness, especially in the West European flat glass market in terms of production capacity and logistics.

"We are aware that we cannot reach our strategic targets through organic growth only. Thus, inorganic growth, especially abroad, is impor tant," says Kirman.

"In accordance with our

investment policy based on sustainable growth and high per formance, we make constant effor ts to use all potential oppor tunities including acquisition, joint ventures and other cooperation possibilities. The acquisition of Sangalli Vetro Por to Nogaro is a fruit of these proactive and diligent effor ts."

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News

AGC solar control facility will “raise standards” Indonesia AGC Asahi Glass (AGC), a worldleading manufacturer of glass, chemicals and hightech materials, announces that it will build a new solar-control coating facility for architectural glass at the Cikampek Factory of PT Asahimas Flat Glass Tbk (AMG), one of AGC’s consolidated subsidiaries in Indonesia.

Through this project, AGC aimsto meet the needs for energysaving buildings, which are growing in Indonesia and other Southeast Asian countries.

Capital investment for the construction of the new coating facility is estimated at about 4.0 billion yen, and the production capacity is expected to be about 6.0 million m2 a year. The new facility is planned to start production in the second quarter of 2018.

Demand for glass in Southeast Asia is expected to increase 5% or more annually. In Indonesia, among other countries, demand for architectural glass and

automotive glass is rising due to steady domestic economic growth.

At its Jakarta Factory, AMG stopped operating a float glass furnace with an annual production of 150,000 tons in October 2016, and, in December 2016, it will restart mass production of float glass at the Cikampek Factory using its state-of-theart facility that produces 210,000 tons of float glass annually.

In Southeast Asia, where a construction boom is continuing, the issue has emerged of how to improve energy-saving efficiency on the back of increasing fuel imports and power supply shortages.

In response, the Indonesian government is promoting savingenergy policies for large-sized buildings, including those airconditioned throughout the year.

Against this backdrop, demand is surging for Low-emissivity (Low-e) coated glass, which features excellent solar control performance, as one solution for improving air-conditioning

efficiency and reducing energy consumption.

Under such circumstances, in addition to the increase in its float glass production in the region, AGC has decided to establish an offline Low-e coating facility that uses the state-of-theart sputtering method.

It will expand the lineup of energy-saving products that feature improved solar control and insulation performance, while maintaining high transmissivity of visible light.

With the new facility, AGC

will provide customers in the Southeast Asia region with products that meet their diverse needs for the performance and design of buildings, thereby making a significant contribution toward reducing energy consumption.

Under its management policy, AGC plus, the AGC Group will continue responding steadily to growing demand in emerging markets and supplying high valueadded products that meet market needs, aiming to strengthen and solidify its foundations for growth.

PT Asahimas Flat Glass Tbk • Head office: Jakarta, Indonesia • Capital: 217.0 billion rupiah • Shareholding ratio: AGC: 43.9% (AGC’s consolidated subsidiary); Rodamas*: 40.8%; Others: 15.3% *Local partner • Established: 1971 • Products: Architectural glass, fabricated architectural glass (planned for the second quarter of 2018), automotive glass, fabricated automotive glass, industrial glass, and mirrors • Production capacity: Float glass: 630,000 tons a year; Coating facility: 6.0 million m2 a year (planned for the second quarter of 2018)

Sisecam Group officially opens new flat and auto facilities Russia Sisecam Group, Turkey's biggest glass manufacturer and one of the world's outstanding glass manufacturers, has established flat glass and automotive glass production plants in the Republic of Tatarstan in the Russian Federation, and the plants have been officially opened with a ceremony hosted by Dr. Reha Akçakaya, Şişecam Flat Glass Group President.

The ceremony at the modern production plants established with a total investment of USD 310 million was held with the presence of Nihat Zeybekci, Minister of Economy, Turkish Republic and Rustam Minnihanov, Tatarstan President, as well as administrative and diplomatic representatives of the Republic of Turkey, Russian Federation and Republic of Tatarstan.

The flat glass plant, Şişecam Group and French Saint-Gobain company holding shares of 70% and 30%, respectively, has a production capacity of 230,000 tons per year and total USD 210 million was invested in the plant

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asianglass AG 16-6

located in the Alabuga Special Economic Zone.

The automotive glass plant with a capacity of 800,000 tool-sets/year, 100% owned by Şişecam Group and also located in Alabuga Special Economy Zone, was established with an investment of around USD 100 million. The flat glass and automotive glass plants, which are among the world's most-equipped plants in terms of technology, employ total 653 employees. Şişecam Group, only global manufacturer operating in all main fields of operation of the glass industry, comprising flat glass, glassware and glass packaging, made its first investment in the Russian Federation in 2002, as a result of the country's strong position, size of the economy and the potential. The Group has invested in the field of glass packaging, glassware and flat glass in the Russian Federation and operates with total eight production plants in the country. Şişecam Group has a total production capacity of more than

1.5 million tons in the fields of flat glass, glass packaging and glassware, and the Group's total investment in the Russian Federation has exceeded USD 1.1 billion. The total number of the Group's employees in the Russian Federation has also reached 3,400 with the flat glass and automotive glass production plants officially opened in the Republic of Tatarstan. Şişecam Group's sales revenue is more than USD 3 billion today, and the Group derives more than half of its sales revenue from international sales. Russian Federation is of strategic importance for the Group as the Group operates eight production plants in the country. Şişecam Group, the third largest glassware, the fourth largest glass packaging and the fifth largest flat glass manufacturer globally, has the following production plants in the Russian Federation: • Gorokhovets Glass Packaging Plant • Pokvorsky Glass Packaging Plant

• Kuban Glass Packaging Plant • Krishi Glass Packaging Plant • Ufa Glass Packaging Plant • Posuda Glassware Plant • Alabuga Flat Glass Plant • Alabuga Automotive Glass Plant As the leader of the Russian glass packaging market with a market share of around 25%, Şişecam Group also maintains its leading position in the Russian glassware market with a market share of around 30% with its Pasabahçe brand. The Group aims to strengthen its position in the market with the most recent flat glass and automotive glass production plants investment.

Asian Glass: mobiles, ipads & androids

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News

Global View

Juniper gets green light for investment ETHIOPIA Juniper Glass today has revealed that it has received all regulatory approvals necessary to conclude the final investments in its US$70 million greenfield container glass factory in Debre Birhan, Ethiopia.

Juniper is working closely with leading global glass engineers and equipment suppliers to build a state-of-the-art factory, which will use the latest available technology in glass manufacturing. The new factory, which is under construction, will have the capacity to produce 60,000 tonnes of glass annually, approximately 200 million glass bottles. Juniper has agreed with most major bottlers in Ethiopia to allocate the majority of this capacity to replace imports. In addition, Juniper has also evaluated opportunities with international customers to export bottles into neighbouring countries. Juniper Glass is expected to be operational within 18 months and, with a strong consortium of partners and full funding in place, the project design has firmly positioned Juniper for growth, with designs allowing for further expansion on relative short notice in future.

The consortium behind Juniper includes Consol Glass, the largest glass packaging company in Sub-Saharan Africa, with manufacturing facilities in South Africa, Nigeria, and Kenya. Consol Glass is a recognised leader in glass packaging manufacturing and with their expertise and support Juniper will be able to supply container glass to highest quality standards.

“Ethiopia provides a dynamic environment for Africa’s industrial growth,” said CEO of Consol Glass, Mike Arnold, “and the Ethiopian market is gaining momentum. We have been evaluating opportunities in Ethiopia for a number of years and are excited about our partnership with Juniper and Roha”, the Africafocussed greenfield investment company.

Commenting on the deal, CEO of Juniper, Brooks Washington, said, “Our partnership with Consol, together with the support from the Development Bank of Ethiopia, will help us to realise our mission and meet the growing demand for high-quality glass bottles.

Perhaps more significantly, it will contribute to Ethiopia’s economic development by innovating, building human capacity and leveraging technology.”, Earlier, the Development Bank of Ethiopia announced it had approved a loan of ETB 565 million (approximately US$25 million) for the project, which was developed

by Roha. With final investment approval from Ethiopia’s Trade Competition and Consumer Protection Agency, Juniper is fullyfunded and will start operating as soon as the factory is completed.

“We are grateful for the support of the various government entities who have played a role in getting us to where we are, including the Debre Birhan Municipality, Amhara National Regional State, and Federal agencies,” Washington added.

International agencies are

describing Ethiopia as a highpotential consumer market, with an expanding middle class and rapid urbanisation. As Africa’s second most populated country with more than 90 million people, the beverage industry is poised to become a thriving sector of the economy. Juniper Glass will be positioned to supply Ethiopian customers, export to regional markets and continue to expand as demand increases.

A business strongly focused on social impact, Juniper Glass will contribute significantly to the development of the Debre Birhan community. There are plans to partner with higher education institutions in the area to design courses for students who are interested in careers within Juniper Glass and other industries.

Various community projects, including in health and education, will also receive support.

“Developing a new business sector, manufacturing a great product and meeting consumer demand will have positive implications on return on investment,” explained Washington. “More than that, the impact on human lives and on the economy is what’s truly exciting.

This includes job creation, poverty reduction and the development of skills that will directly impact Ethiopia’s growth story.”

Distributed by African Media Agency (AMA) on behalf of Juniper Glass Industries PLC. About Juniper Glass Juniper Glass will be a progressive

glass bottle manufacturing company with an initial planned capacity of 200 million glass bottles per year, for supply to Ethiopian and regional markets.

The factory will be situated in Debre Birhan, a fast-growing city approximately 130km from Addis Ababa.

About Consol Glass Consol Glass is the leading glass packaging manufacturer in SubSaharan Africa, with operations in South Africa, Kenya, and Nigeria. Consol Glass exports glass packaging to more than 17 African countries. Employing some 1800 employees, Consol brings significant expertise to the glass packaging industry. The company is perfectly positioned to partner with customers and deliver meaningful, relevant glass packaging solutions across a range of different markets.

About Roha Roha is a greenfield investment company that develops new businesses in Africa. The company invests in areas of “latent demand”, allowing it to build fastgrowing, profitable businesses by addressing proven demand with existing world-class technology and business models. Roha brings all elements of industrial project development under one roof – starting with detailed feasibility studies and business plans, and spanning management recruiting, capital structuring, hands-on project leadership, and commercial ramp-up.

Yioula to sell off Druiba unit GREECE Greek glassmaker Yioula has announced it is going to sell its Bulgarian unit Drujba Glassworks to Portugal’s BA Vidro as part of a wider divestment plan that also includes the group's glass container business in Romania.

Yioula “has entered into a sale and purchase agreement to sell substantially all of the

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company’s glass container business to BA Vidro,” the Greek company announced. The sale of the group’s glass container business is expected to be closed by the end of the year pending regulatory approvals, Yioula said. Drujba Glassworks has two glass container plants in Bulgaria - in Sofia and Plovdiv.

Outside of its home country,

the Greek group also owns glass container plants in Romania and Ukraine. The agreement with BA Vidro excludes the Ukrainian glass container business. Drujba Glassworks shares traded at 4.788 levs, up 8.8%, as at 1205 Sofia time on Tuesday on the Bulgarian Stock Exchange. Drujba Glassworks said in July it would distribute

0.30 levs ($0.17/0.15 euro) per share in gross dividend for 2015. The company's net profit fell to 1.3 million levs last year, from 16.9 million levs in 2014.

With a total of eight factories and 2,400 employees, in the plants on the Iberian peninsula, in Poland and Germany, BA Vidro has an annual production of over six billion containers. -

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News

Berlin and Bruni join forces GERMANY/ITALY Berlin Packaging and Bruni Glass have announced they have come together as one company. Bruni Glass – an Italy-based supplier of premium glass packaging with $150+ million in annual sales, 3,000+ custom-designed and patented packaging shapes, and 7000+ customers – operates out of locations in Italy, France, Spain, China, Canada, and the United States. Berlin Packaging, which supplies glass, plastic, and metal packaging and components, is the largest and top-performing company of its kind in North America. Berlin announced a definitive agreement to acquire Bruni on October 11, 2016.

The acquisition brings together two world-class suppliers of rigid packaging products and services.

The combined company will end 2016 with annual sales in excess of $1.2 billion, 100+ sales and warehouse locations across

North America and Europe, and a portfolio of more than 40,000 glass, plastic, and metal container and closure items.

Both companies have been growing multiples faster than the overall packaging market and enjoy strong relationships with a combined 17,000+ customers.

Berlin Packaging's customers can now take advantage of Bruni's extensive selection of custom-designed glass packaging, with an emphasis in the spirits, wine, food, and gourmet sectors. Also available is access to Bruni's design team, European warehouse locations, and manufacturer relationships.

Bruni's customers can now leverage Berlin's North American warehousing, extensive array of packaging items (glass, plastic, and metal), and Berlin's suite of income-boosting services that are offered at no charge

Anchor’s away as KPS completes sale UNITED STATES The investment firm that bought Anchor Glass Container Corp. just over two years ago is selling the Tampa company for more than $1 billion.

KPS Capital Partners LP signed a deal to sell Anchor to CVC Capital Partners, a private equity firm, and BA Glass BV, a European maker of glass bottles.

Anchor is one of the largest privately owned companies in the Tampa Bay area, with $641 million in revenue in 2015 and about 2,000 employees. Anchor makes glass packaging for bluechip companies in the beer, liquor, food, beverage, readyto-drink and consumer endmarkets, a press release said.

Since buying Anchor in April 2014, KPS worked with Anchor’s management to increase profitability by more than 50 percent, Jay Bernstein, a partner at KPS, said in a separate press release.

“KPS was the only investor to recognize the potential value of our business two years ago,”

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Jim Fredlake, Anchor’s CEO, said in the release. “Working in partnership with KPS, we invested significantly in our operations and people, focusing on manufacturing excellence and providing best-in-class product quality, product innovation and the highest levels of service and support to our customers.”

Fredlake also said he looked forward to working with the new owners.

New York-based CVC manages capital on behalf of more than 300 institutional, governmental and private investors worldwide and has commitments for more than $71 billion in funds from investors. BA Glass, headquartered in Amsterdam in the Netherlands, reported profit of 86.5 million Euro on revenue of 530.8 million Euro in 2015.

Headquartered in downtown Tampa, Anchor has six manufacturing facilities in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma, in addition to an engineering and spare parts facility in Illinois and a mold

in exchange for new packaging business; these include Studio One Eleven structural and brand design, capital lending, and quality consulting services.

Suppliers to both companies benefit by tapping into the combined company's 200-person sales force, which has more than 1800 cumulative years of experience selling packaging. This team, in conjunction with regular marketing efforts, targets every market that uses rigid packaging, including food, beverage, wine and spirits, pharmaceutical and nutraceutical, personal care, household care, and industrial.

"We are excited to complete our transaction with Bruni Glass," said Andrew Berlin, Chairman and CEO of Berlin Packaging. "As we work to integrate our companies, our primary focus is delivering our combined product and service offering in a way that helps our

customers succeed. There will be no disruption as we unite these two great companies."

"I am so proud of the Bruni team and the work we do every day to provide premium glass packaging and expert advice to our customers," said Roberto Del Bon, CEO of Bruni Glass.

"Now that we're partnered with Berlin, I know we can do even more. Bruni + Berlin is a situation where 1 + 1 doesn't just equal 2; in this case, 1 + 1 equals 3 with the extra benefits for our customers, our suppliers, and our employees."

All employees and locations are being retained. Bruni's leadership – including Chairman Gino Del Bon, CEO Roberto Del Bon, and the management team – are continuing in their roles. Bruni now operates as Bruni Glass, A Berlin Packaging Company.

Saint Gobain raises profile ROMANIA Saint-Gobain has acquired the entire share capital of Romanian company Pietta Glass Working, active in glass processing and insulating glazing systems for façade markets and certain industrial applications. Pietta Glass sales should reach €20 million in 2016, with a strong potential for growth over the next few years.

The Flat Glass business is already established in Romania

with a float glass plant and a coater. This acquisition will allow the Group to expand the business' industrial footprint in order to better serve the growing façade markets and round out its positioning in industrial applications with an optimized cost base. The transaction is consistent with the Group's strategy of expanding its range of downstream products towards high value-added solutions.

Tempered bottles to launch GERMANY The market for beer packaging might soon see a new product thanks to the continuously developing project “tempered glass” by Vetropack and Emhart.

The partners announced this project for the first time in 2012; the aim is to produce lighter or harder glass bottles without loss of quality.

Initially the validation and test

phase was planned for 2014 but both were delayed. The complete validation was concluded at the end of 2015.

Meanwhile pilot production of tempered reusable containers has commenced. These are to be launched in a locally limited test market with retailers in 2017. The 0.33l reusable container weighs about 210g.

design and manufacturing facility in Ohio. The company produces almost 5 billion glass containers annually.

About 46 percent of its sales are

from customers in the beer industry, according to Moody's Investors Service.

The company was publicly traded until 2006.

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News

Glass recycling reaches new high EUROPE The average glass recycling rate across the EU has reached its highest ever level, 74%, according to data published by the European Container Glass Federation (FEVE).

Figures just released show it is one percentage point higher than the previous year, while the tonnage collected increased by 3.5%.

However, some 26% of glass bottles and jars were sent to landfill.

The UK achieved 67% glass packaging recycling, one

percentage point lower than the previous year, but is still well ahead of its 60% EU target for 2020.

Higher performers such as Sweden, Belgium, Germany and Slovenia continued to perform strongly, while other good performing countries including Austria and Denmark recorded a slight decrease in recycling.

Worse performing countries Spain and Bulgaria showed a steady increase while Romania, Cyprus, Slovak Republic and Greece continued to struggle.

FEVE secretary general Adeline Farrelly said the data showed the need for targeted investments in infrastructure and communications. She said this should be sent to both higher and lower performing countries.

Farrelly called for EU measures to support the recycling of “permanent materials” such as glass and metals that can be infinitely recycled without losing their quality.

“The EU waste legislation currently under review in the circular economy package should

incentivise permanent materials that can be infinitely recycled without losing their properties,” she said.

“As an industry, we would like to have more recycled glass, provided that it is of high quality and is economically viable.

“We believe that acknowledging the superior status of permanent materials in, for example extended producer responsibility schemes, will incentivise the market to use permanent materials that can deliver real closed loop recycling.”

Tesla to challenge automotive glass sector UNITED STATES Tesla has decided that it can make it's own glass but the principal question on everyone’s lips is, will it be safe?

Tesla, the current leader in everything from electric cars to solar panels, has done it again.

CEO Elon Musk has announced the company will be designing its own glass for use in automotive applications and solar panels.

This new Tesla Glass program will enable the company to design and craft its own glass while keeping overhead low because everything is done in-house.

What is so special about this new Tesla Glass? Will its use be restricted to Tesla products, or is it something that could potentially make its way into the mainstream automotive industry?

So, what Is Tesla Glass? To be quite honest, we don’t really know too much about Tesla Glass yet.

What we do know is: • It’s being engineered, designed and built in-house by a program known as Tesla Glass, headed by Mike Pilliod. Pilliod has been working for Tesla since the beginning of 2014 and has a bachelor’s degree in ceramic engineering and material science.

• Its first applications will be in Tesla’s solar panels and the new Model 3 prototype electric cars.

• It is very heavy duty, at least when compared to other roofing materials like terra cotta, clay and slate tiles.

Currently, there isn’t a whole

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lot of other information available about this new glass. Most sources have been able to confirm there is indeed a Tesla Glass division at the company and it’s working on making in-house glass for use in solar panels and cars. Beyond that, Musk and his crew are being uncharacteristically secretive about the project.

When it comes to automotive glass, there isn’t a lot of competition.

Most original equipment manufacturer (OEM) glass comes from half a dozen companies, as well as a few aftermarket and third-party companies that also handle the manufacture and shipment of automotive glass.

The regulations surrounding the production and shipment of glass used for automotive applications are much stricter for companies that manufacture OEM glass, because these companies ship their products to factories and dealerships. This ensures the highest-quality products are always used in vehicle production.

Right now, if Musk chose to market his new Tesla Glass, his company would likely be considered a third-party manufacturer, making it harder to get this new product into the mainstream industry.

Tesla Glass has already shown great potential in Musk’s camouflaged solar shingles, which provide power without the bulky look of traditional solar panels.

While clear from the top to allow sunlight to hit the solar panels, the glass looks opaque to anyone looking at the house from street level. It’s also durable enough that you can walk on it just like regular shingles, making roof maintenance much simpler.

With the minds he’s gathered

together to work on this project, Tesla Glass may be able to provide one of the strongest types of glass ever. Musk has already planned at least two applications for it, so there’s no telling where it might go next. Who knows? Maybe your next cellphone will be made of indestructible Tesla Glass.

Guardian to invest in new furnace UNITED STATES Guardian Glass plans to invest $9.5 million in a new furnace in 2018.

In anticipation of the replacement of its 20-year-old furnace, Guardian wants to install new emissions control equipment in 2017 to work in conjunction with the new furnace.

The company has applied to the state Department of Environmental Conservation for a modification of its Title V air quality permit.

The modification would increase the furnace capacity at the 50 Forge Ave. plant and install additional emissions control devices to satisfy requirements of a Jan. 13, 2016, consent order.

“We want to install new emission control equipment to reduce emissions. To do

that, we need to modify our air quality permit,” said Laura Neubauer, environmental services specialist for Guardian’s local plant. “We are being pro-active. We agreed with the Environmental Protection Agency on a consent order on a timetable for upgrades to our plants nationwide.”

The application also asks that the carbon monoxide limit be removed because a certain process will no longer be used and the nitrous oxide limit no longer applies.

The permit identified that particulates from raw materials and cullet handling operations are subject to new emission requirements.

The DEC has prepared a draft permit and made a tentative determination to issue the permit modification.

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News

People and Places

British Glass appoints new President United Kingdom The managing director of Encirc, Adrian Curry, has been appointed president of British Glass for a two-year term.

Effective from 1 January, the appointment will see Curry join the organisation’s board and work with industry colleagues to raise the profile of the glass bottling industry as a whole. He was elected to the position at British Glass’ annual meeting and will take over from Davia Walmsley, the creative director of Daedalion Glass Studios, who was the first female president of the association in its

100-year history.

British Glass is the glass packaging industry’s trade association, representing manufacturers at a national, European and international level.

Its remit includes promoting the benefits of glass as a packaging material, ensuring the industry remains a competitive force and at the forefront of innovation.

It also offers guidance and support not only to British glass manufacturers, but the entire supply chain from initial design to end-product.

Adrian Curry said: “It is a

great honour to be elected to the position of president of British Glass. I am looking forward to working closely with the board to promote the endless possibilities of glass as a material.

“A key focus of my term will be driving the industry to become more sustainable, and in particular meeting the commitment to the government’s Industrial Decarbonisation & Energy Efficiency Roadmap. The aim of an 80% carbon reduction by 2050 is achievable, and some manufacturers, including

Encirc, are already setting an example for other industries to follow.”

Dave Dalton, chief executive of British Glass, added: “We are delighted to welcome Encirc managing director Adrian Curr y as the new president of British Glass. With his strong and visible commitment to the glass industr y, I’m sure Adrian will be a tremendous emissar y and steadying influence for the world of glass manufacturing in what promises to be a ver y exciting time of global changes.”

Ceramics and Glass Council elects new President Sri Lanka Mr. Sanjay Tiwari, Managing Director & CEO of Piramal Glass Ceylon PLC was elected as the new President of the Sri Lanka Ceramics and Glass Council at its 3th AGM held recently at the Cinnamon Grand Hotel, Colombo.

Tiwari who took over Mr. Mahendra Jayasekera, CEO, Lanka Walltiles PLC is the 4th President of the Council.

Speaking at the AGM, the new presidentappreciated the efforts and the contribution of all the past Presidents, namely, Sunil Wijesinha, DayasiriWarnakulasooriya and Mahendra Jayasekera.

He highlighted the contribution of the Ceramic & Glass Industry to the overall economy of the country and their constant efforts in building thebrand

image of Sri Lanka.

The Incoming President also emphasizedon the current challengesfaced by the Industry and the need forsupport from the Government of Sri Lanka.

He appreciated and thanked Geological Survey & Mines Bureau,Export Development Board,The Employers Federation and ITI of Sri Lanka for their constant support.

The following were elected to the Board of Management of the Council;-President, Mr. Sanjay Tiwari (Piramal Glass Ceylon PLC); Vice President, Dr. Jagath Pieris (Royal Fernwood Porcelain Ltd); Secretary, Mr. Navindra Abeysekera (Lanka Ceramic PLC); Assistant Secretary, Mr. Wasaba Jayasekera (Dankotuwa Porcelain PLC); Treasurer ,Mr. YoshinarariShimaya (Noritake

Lanka Porcelain); Immediate Past President, Mr. Mahendra Jayasekera (Lanka Walltiles PLC); Committee Members, Mr. Anura Warnakulasooriya (Midaya Ceramic Co (Pvt) Ltd) and Mr. WipulKularathna, Samson RajarataTiles. The Ceylon Chamber of Commerce functions as the Secretariat to the Council.

The Chief Guest for the event was Dr. Indrajit Coomaraswamy, Governor, The Central Bank of Sri Lanka. In his address to the gathering he gave an insight to the current economic situation of the country briefing on the past and subsequent developments, encompassing both internal & external factors that had influenced the current account deficit. He appreciated the efforts of the present

Government in forwarding the economy in the right direction.

The Governor also highlighted the importance of signing FTA with neighboring countries like China, India, Singapore and Pakistan.

Council Members of the Sri Lanka Ceramics and Glass Council – Standing L/R M/s Rohan Casiechetty, The Ceylon Chamber of Commerce; Wasaba Jayasekera, Dankotuwa Porcelain PLC; Sanjay Tiwari, President Elect, Piramal Glass Ceylon PLC; Dr. Indrajith Coomaraswamy, Chief Guest; Governor, The Central Bank of Sri Lanka; Mahendra Jayasekera, Outgoing President, Lanka Walltiles PLC; Wipul Kularathne, Samason Rajarata Tiles; and Anura Warnakulasooriya, Midaya Ceramics (Pvt) Ltd

New appointment at Electroglass United Kingdom Electric melting and boosting specialist Electroglass has announced the appointment of Jean-Christophe Arraez as Technical Manager. “JeanChristophe has over 25 years’ international experience in glass chemistr y, furnace and forehear th engineering, operation and management,

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involving fuel-fired, electrically boosted and all-electric glass melting and conditioning.” says Electroglass Managing Director Richard Stormont.

“His industr y experience embraces soda lime, borosilicate, fluoride opal and lead cr ystal glasses for cosmetics and general

containers, the pharmaceutical industr y, kitchen and tableware, decorative and other products. He is also multi-lingual, and joins our Projects Engineering Manager Steven Tawn and Electrical Engineering Manager Andrew Barlow as a key member of our management team”.

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The RAPIDLINE Series of Equipment can be configured with a nested floor loader as shown or a gantry loading system. Additional options include both fixed and compact storage options to add multiple glass positions within the same bay or adjoing bay to maximize the layout in the available space. Storage area can also be zoned/configured to allow continuous production while restocking locations within the storage system.

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News

Fenzi appoints Gusmao for Tecglass machines Brazil Gusmão Representações has been operating for more than 30 years in Brazil, as representative and distributor for big players in the glass processing industry.

It now enters the commercial strategy of the Fenzi Group to support the sophisticated technology developed by Tecglass, a company specialising in digital printing on glass, which became part of the international group in the beginning of 2016.

The historic collaboration

between Fenzi South America and Gusmao Representações, created to promote and distribute the wide range of Fenzi and Glass Alliance products for highyield insulating glass in Brazil, is now enriched with a new line of high-performance machines. In fact, the Tecglass machines are the most advanced technology available today in the field of digital printing on glass: versatile tools, fast and efficient for glass decoration, able to print any

kind of pattern and photographic images with high definition and any colour effect desired.

“We are very happy with this agreement, which allows us to rely on a professional partner with great commercial experience, who will support us in developing all the potential opportunities of the territory,” said Manuel Ramos, co-founder of Tecglass with Javier Fernandez. “Thanks also to the trust placed in the Fenzi Group by glass operators, we will be able to

offer Brazilian specialists in the glass printing industry tailor-made products able to meet every need with excellent results’.

Champagne moment for IRIS France Verallia’s Oiry glass container plant in the Champagne region of France is the latest company to employ the newest non-contact inspection technology from IRIS Inspection machines to deliver the exacting quality expectations of local customers. Oiry is located close to the town of Épernay and is a leading manufacturer of sparkling wine bottles for many of the world’s leading Champagne brands.

The subject of a major plant modernization during the past two years, the factory houses

one melting furnace and four advanced production lines, with IRIS camera-based inspection machines now featured at the cold end of two lines. The first installation was completed on one line at the beginning of 2015 and comprises two Evolution 5 machines for the detection of faults, in particular stress defects in base and finish areas.

Production flexibility is an essential element of Verallia’s manufacturing capabilities at Oiry, with the ability to make everything from small to very tall

Champagne bottles. Purchased to replace existing automatic inspection equipment, the Evolution 5 machines were selected because of their impressive modular design and improved inspection results.

These machines feature motorized cameras and can inspect all ware sizes in heights up to 600mm and diameters up to 200mm.

Using the Evolution 5 equipment, production specialists at Oiry are able to perform fast and precise

inspection of fine over finish, unfilled, overpressed, wire edge and other defects. Two more IRIS inspection machines have been installed in recent weeks, having been purchased for another refurbished and modernized line of the factory. Verallia specified two Evolution 16 machines for sidewall and sidewall stress inspection for this project. Thanks to the incorporation of the latest technical innovations, these machines successfully perform the inspection of engravings, irrespective of bottle orientation.

Prestigious Phoenix Award presented to Chinese glass industry entrepreneur China The outstanding contributions of Chairman Cho Tak Wong of Fuyao Glass Industry Group to the international automotive glass industry were recognised at a specially arranged formal ceremony on 7th October 2016 in Dayton/Moraine, Ohio, USA. Chairman Cho is the 46th winner of the prestigious Phoenix Award, presented annually by representatives of leading glass industry suppliers.

Ceremony attendees, many who travelled great distances to attend, included two past Phoenix Award recipients, Surasak Decharin and John McConnell.

As a symbol of the award, Chairman Cho was presented with a glass sculpture, representing the mythological phoenix bird.

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Accepting The Phoenix Award, Chairman Cho expressed his pride that his efforts had been recognised.

He thanked the assembled group for their applause and commented that he feels that the applause is encouragement to him to do even better in the future. “A life worth living is one that helps society progress and sets up its people for success,” he commented with his ever-present philosophy of philanthropy.

Cho Tak Wong leads China’s largest exporter of automotive glass, with 11 advanced production centres strategically located throughout the country, as well as international subsidiaries in the USA, Japan, South Korea, Australia, Russia, Germany and Hong Kong.

“Chairman Cho is a truly worthy recipient, whose accomplishments of building up a world class construction and automotive glass manufacturer in Asia - and recently in the USA - are truly remarkable and outstanding” commented Dr Bernd-Holger Zippe, Chairman of The Phoenix Award Committee and Chairman of ZIPPE Industrieanlagenbau GmbH in Germany. “In addition, he is a memorable personality,

with a great sense of charity.”

Dr Zippe, who completed his term of office as PAC Chairman at the Dayton event, was honoured to have presented the award to Chairman Cho. “These meetings are truly inspiring and interesting, bringing forward our common interest - the use of glass in today's world and in the future.” His successor as PAC Chairman for the next 12 months is Paul Hutchinson, Sales and Marketing Director at UK-based DSF Refractories & Minerals Ltd. “It was an honour to be part of the 2016 Phoenix Award Committee, recognising a very worthy and humble recipient in Chairman Cho and I look forward to leading the PAC as Chairperson in 2017,” Mr Hutchinson said.

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News

Batch Solvay “keen to invest” in key assets World // Soda Ash Solvay is keen to invest in key soda ash assets in order to secure current production and long-term competitiveness, according to an executive at the Belgium-based chemicals major.

Christophe Clemente, president of Solvay’s soda ash and derivatives unit, said the investment announced on 1 December to install a new energy-efficient gas turbine at its Rosignano, Italy, soda ash plant is part of that strategy.

Clemente added that the investment, which will include a new generator coming online in January 2018, is an attempt to bolster long-term competitiveness.

“The investment means that we are keen to invest selectively in key assets and we are committed to this business. This is one of the key messages that you can read through this investment,” he said. Solvay’s Rosignano facilities have the capacity to produce 1.05m tonnes/year of soda ash, 165,000 DMT (dry metric tonnes)/ year of caustic soda and 150,000 tonnes/year of chlorine and

35,000 tonnes/year of hydrogen peroxide, according to the ICIS Plants and Projects database.

Clemente said the investment in its Italian assets was part of Solvay’s strategy to reinforce its position in the soda ash market, after the company announced in June 2013 it would aim to achieve costs savings of up to €100m as of 2016 in its soda ash operations.

At the time, the company said it intended to focus on the competitiveness of its key European synthetic soda ash plants as well as expanding on its trona mining-based operations in North America.

Solvay’s soda ash facilities in the US, Italy, Bulgaria and Spain compete in their respective regional markets as well as export markets.

While its plants in France and Germany serve only their regional markets.

According to Clemente, this system allows the company to give its customers a better service, adding: “Today we are in a position to provide to our

customer a service through a multi-plant network.

“If something happens in one area we have other plants to supply our customers.”

Solvay’s executive also spoke regarding the conditions facing the soda ash market after market participants recently talked about the increased prices of coal and anthracite in Asia.

The expectation is that energy cost rises will put downward pressure on soda ash, with Clemente saying it was one of the factors to consider.

“This has impacted already the competition where we can see through this information that there is a strong price increase in Asia. It is clear that this is impacting also European producers,” he said.

On top of this, as soda ash is mostly traded on annual contracts, players have begun contract negotiations for 2017, with mixed views on what direction prices may take in 2017. Alongside high energy costs, market participants say that increased soda ash capacity next year will also be an

Tata improves efficiency with turbine addition United Kingdom // Soda Ash Tata Chemicals Europe has opened a new GBP5.5m. turbine, which will efficiently provide energy for its soda ash business in Cheshire, UK. The turbine the beneficiary of a GBP2.5m.

European Regional Growth Fund grant from the UK government - is housed at Tata Chemicals’ Winnington CHP plant, which as a result performs at more than 80 percent efficiency.

Alan Runciman, general manager for soda ash, Tata Chemicals Europe, commented, “Anyone involved in synthetic soda ash manufacturing will know that it’s an energy-intensive industry, where the cost of energy makes up the largest part of the overall cost base.

This turbine allows us to provide power for our manufacturing process and produce soda ash much more efficiently.”

Craig Thornhill, head of sales for soda ash, Tata Chemicals Europe, added, “As the UK’s sole

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manufacturer of soda ash, it is crucial that we remain a reliable and long term partner to the UK glass, detergent and chemical industries, all of which rely heavily on our product and service.

Significant investments in our business such as this should therefore be seen as investments in the future of our customers and UK manufacturing.”

In 2013, Tata Chemicals acquired Winnington CHP so that it could take full control of its energy costs. Since then, the company’s energy team have been very busy maximising this state-ofthe-art CHP plant’s efficiency and thereby dramatically reduce its carbon footprint.

The plant itself is now capable of powering 200,000 homes - an area the size of Liverpool.

In September 2016, this culminated in the opening of a new steam turbine. This Pound 5.5 million investment has transformed

the CHP plant, making it one of the most efficient CHP plants in the UK. The project will ensure that soda ash and sodium bicarbonate have affordable energy for the next decade and beyond. The soda ash business has reduced its carbon footprint by 10 percent in the past three years and a further 15 percent is planned for the next 5 years. This will maintain Tata Chemicals Europe’s position as one of the world’s lowest carbon emitters from a synthetic soda ash process.

Martin Ashcroft, managing director, Tata Chemicals Europe, said, “The opening of the steam turbine represents a key moment for the soda ash business. The new steam turbine is perfectly sized for our operation and as a result, the overall plant is much more efficient.

The investment ensures that soda ash has affordable energy for the long-term and underpins the long term future of the business.”

important factor in negotiations.

The increase in capacity comes in the form of a new plant in Turkey, owned by Ciner Group subsidiary Star Kazan Soda Elektrik, which is set to start its first phase of operations in August 2017 and will eventually have a total capacity of 2.5m tonnes/year.

Players expect the development will put pressure on 2017 contract prices to reduce.

“There are two elements in the campaign: on one side, there is cost increase and what this means for producers,” said Clemente.

“On the other side, you have the market that is balanced or slightly long and buyers who are expecting a price decrease. We'll see in 2017 what is the outcome,” he concluded.

NEWS IN BRIEF Silt from a standard gauge railway construction site could be washed downhill and fill up Lake Magadi, Kenya, experts have warned.

They said adequate drainage should be put in place to save the lake which is a key soda ash source.

Already, poor drainage along the Mai Mahiu-Narok road has seen rich soil from parts of Narok washed into the lake, which is the mainstay of hundreds of residents.

This came up during a stakeholder’s consultation meeting on the multibillionshilling railway at Satellite Naivasha. Construction of the Nairobi-Naivasha section of the railway will begin next year.

TATA Magadi Company senior manager Francis Sakimpa said there are major fears of environmental degradation once the project begins. He told the meeting that poor workmanship has led to all the water from the main road diverted to the lake and this has affected the mining of soda ash.

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News

2017

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23

News Anaylsis

News

24

Europe puts up China barrier A

n approaching World Trade Organization deadline could result in higher prices on European goods made with parts and materials imported from China.

On Dec. 11, the European Union could grant China so-called “market economy status,” thereby using Chinese data for calculating duties in anti-dumping cases. Or European lawmakers could draft new rules that do away with the differentiation between market and nonmarket economies that the EU has used in the past.

The odds are against China getting the treasured title by the WTO issued deadline, said Edwin Vermulst, a partner at VVGB Advocaten, a Brussels-based law firm. “There is simply too much pressure from southern EU states and industrial sectors with a protectionist agenda to maintain or even increase the high level of duties,” Mr. Vermulst said.

Based on a proposal made public in November, the European Commission is on a mission to change its anti-dumping and antisubsidy framework in favor of more stringent rules.

This raises concerns for finance chiefs whose firms have outsourced part of their supply chain to China, according to Stephen Adams, a partner at Global Counsel LLP, a consultancy based in London. “When you have outsourced…to China, you see duties as a cost factor and not as protection,” he said.

A new slate of European rules is likely to discourage Chinese companies from dumping products in the EU and punish those that benefit from Chinese government subsidies by imposing steeper duties on the goods they import.

“What we have seen is that the instruments in our toolbox are not sufficient to deal with the huge overcapacities that result in dumped exports on the EU market,” said Daniel Rosario, a spokesman for the EU Commission.

China attracted criticism earlier this year because of its efforts to sell its excess production of steel to countries abroad, including the EU. Dumping refers

asianglass AG 16-6

to the export of products by a country at prices that are substantially lower than they are domestically.

Europe’s automotive industry could take a beating from higher import duties on Chinese parts and intermediary products, such as aluminum wheels. European car makers including Germany’s BMW AG as well as France’s Peugeot SA and Renault SA are paying duties of 22.3% on imported Chinese aluminum wheels. That specific duty is currently under review by the EU Commission.

THE NEW EU FRAMEWORK IS NOT FAIR “We are being hit by these punitive customs,” said a person familiar with the situation in the sector. “These are unnecessary additional costs. It’s money that we could invest elsewhere,” the person said.

Other sectors may suffer too. Wacker Chemie AG , a German chemicals firm, exports polysilicon to China where it is used to make solar panels, which are exported back to Europe. Some German textile makers also worry about duties imposed on Chinese imports. For the production of industrial textiles, many firms rely on Chinese base material supplies.

Even before there were discussions of a new anti-dumping framework, exporting to the EU had already lost some of its luster for Chinese manufacturers. When the European Commission, the region’s governing body, imposed duties of 18.4%, Jiangyin Xicheng Steel Co. Ltd. stopped exporting to EU countries.

“Our customers cannot afford the sale price in combination with the duty,” wrote Minnie Lu, sales manager of the closely

held company near Shanghai, in an email.

“The new EU framework is not fair.”

Still, the proposal needs to pass various EU legislative bodies before it is enacted, so the Dec. 11 deadline will most likely be missed. It could be in place by the spring of 2017.

To be sure, manufacturers that directly compete with cheap Chinese endproducts said this is an opportune time to lobby for rules that would allow for higher duties on Chinese goods.

“We are anxious to fight distortions in the market,” said Emmanuelle Butaud-Stubbs, director general of Union des Industries Textiles, the French textile association.

ArcelorMittal , a Luxembourg-based European steel manufacturer, said it was too early to gauge the potential impact of the new framework. “It’s impossible to say at this stage exactly what it looks like, and what that could mean for us,” a spokesman said in an email.

The ceramics industry, said it also suffers. There are duties of about 17% on tableware and 28% on ceramic tiles, which are deemed too low.

“A duty of around 30% is more successful in fending off Chinese competition,” said Renaud Batier, director general at Cerame-Unie, the European Ceramic Industry Association.

If the EU doesn’t grant market economy status to China, European companies may face retaliatory measures, said Xu Bin, professor for finance at the China Europe International Business School in Shanghai.

In a statement issued Nov. 10, a day after the EC proposal was announced, the Chinese trade ministry said the nation will retain “the right to take all necessary means, and resolutely safeguard their legitimate rights and interests.”

European companies operating in China now fear retaliation. “A frictional relationship will be detrimental for all parties, so tough unilateral approaches should be avoided,” said Javier Gimeno, general delegate for Asia-Pacific at Compagnie de Saint-Gobain SA, a French industrial company.

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ANALYSIS: Container glass

Thinner walls...

Southeast Asian container glass, p2

Yogender Malik discusses how the development of solar glass supply ASEAN is attempting to keep pace with rising demand.

S

outheast Asian packaging industry is moving ahead to take a new shape with improved lifestyle of the consumers in the region driven by the continued higher economic growth.

Premium segments of products are shifting to glass from plastics that dominate the markets and posed as threat to many glass container manufacturers. Besides alcoholic drinks, the natural companion of glass, the higher segments of beer, energy drinks and foods are now marketed in glass containers. Emerging popular products like fish sauces have also opted for glass by replacing plastics.

In recent years the fall in energy prices have benefited many products and economies, but the Southeast Asian packaging glass manufacturers are continuously faced with higher production cost due to gradual withdrawal of subsidy by the state suppliers, particularly, in major subsidy providing countries like Indonesia and Malaysia. Higher consumption of beer, drinks and non-alcoholic beverages, however, in Thailand, Vietnam and Philippines have increased glass packaging in ASEAN region.

Thailand’s leading glass container manufacturer Berli Jucker Public Company Ltd (BJC) said the demand for glass is rising with higher consumption of beer, drinks and food products. “Over 80 percent of BJC’s under construction 300 tonnes a day production capacity new plant had already been booked by existing and new cuistomers,” said Pattaphong Iamsuro, President of BJC Packaging Supply Chain.

The new plant, located at Saraburi, is due to startup by the end of 2017.

Industry sources estimate by 2020, when Asia Pacific’s share in glass packaging will rise to over 40 percent, valued at some US$23-US$25 billion, about US$4.5-

26

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5.5 billion or more will be spent by Southeast Asia or ASEAN bloc of 10 member countries, which has 600 million strong consumers at the moment. The bloc’s higher GDP growth of 5-6 percent a year have been increasing the purchasing power of the consumers steadily.

The sources estimate the total ASEAN packaging market size for glass is already around US$4 billion in 2016, out of total of about US$80 billion of all types of packaging. 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 by that time.

Currently, the ASEAN packaging glass market is deficit of at least 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 Centre (ITC). The import is rising rapidly due to huge expansion of glass packaging in Vietnam, which is the largest container glass importer in the region.

US based market researcher Global International Analysis (GIA) indicates that 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. GIA said the Asia Pacific region is the fastest growing market with a CAGR (Compound Annual Growth Rate) of five percent in value term over the period. The growth is higher in the ASEAN countries.

With an estimated 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

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ANALYSIS: Container glass

...big markets about US$16 billion. Southeast Asia’s stake is estimated to be at least US$3.5 billion last year. The increase by at least one billion dollars in five years is considered to be reasonable, said the markets insiders. It is a very significant development when the regional container glass factories are worried about increasing stake of the PET and aluminium can consumption in all Asean economic community markets.

Static situations

When the current global consumption of glass continues to remain almost stagnant at about six percent, the glass container manufacturers of Southeast Asian countries are experiencing a boom in beer and drinks consumption pushing ahead demand for glass packaging. Along with Indonesia and Thailand, Vietnam is now emerging as a billion dollar market a year for packaging glass, while the Philippines is fast approaching. The Malaysian consumers also preferring glass over others in premium segments of foods and beverages.

Beverage and food, the two greatest contributors of glass’ growth with global market share of about 14 and 40 percent, respectively, are strongly increasing the glass packaging in Southeast Asia. In addition to hard drinks and newly emerged energy drinks, the premium quality beer and food products are replacing PET with glass.

In most promising emerging market of Vietnam the manufacturers of quality products tend to package with glass. Currently, the quality fish sauces are being marketed in glass bottles. Use of glass bottles for fish sauces appears to have opened up a new horizon in glass packaging as the market for fish sauces is rapidly rising in Southeast and East Asia with expected turnover of several billion US dollars annually by 2020.

In Vietnam fish sauce market is already worth over half a billion dollars a year. The manufacturers are shifting to glass by replacing PET as the consumers of fish sauce prefer its packaging in glass. The retailers are also accepting more glass bottles, compared to the past. The change is faster than expected because of increasing spending power of the Vietnamese people for quality packaging following continued high economic growth of the country.

Thai solutions

Despite better trend for glass, the leading glass container manufacturers are favouring increased investments in glass’alternatives, including glass rival PET. Even though they prefer total packaging solutions, glass, plastics, metals, papers and others, Southeast Asia’s two largest glass container manufacturers, Bangkok Glass Industries Ltd (BGI) and BJC are investing more in plastics bottles and other alternatives.

BGI and BJC both believe glass needs to let other packaging solutions prosper to help expand the market from where Thai glass will be benefited. BJC is panning to go for total packaging solutions within next five years to grab the major market share of all, including, glass, cans, PET, paper and paperboards. Its plans, however, gave glass a special consideration for grabbing the core markets of beverage, drinks, foods and pharmaceutical packaging.

BJC, which consumes about a half of its products for its own subsidiary beverage and drink industries, is already investing Thai Baht2 billion in the construction of the 300 tonnes a day capacity new furnace in Saraburi province, to cater the rising demand for glass containers. The new plant, located on a site managed by BJC’s subsidiary, Thai Malaya Glass Thailand, will come into stream by

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THAILAND 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. After completion of the current expansion the annual production capacity will rise to over 4,000 tons per day from the existing 3,635 tons per day. Bangkok Glass provides various packaging solutions. It operates a major plant for PET bottles and manufactures various closures, including aluminium, crown, plastic and twist-off caps, for glass and plastic containers. It also produces corrugated cartons.

Berli Jucker Public Company Limited (BJC) (Thai Glass Industries PCL (TGI) and Thai Malaya Glass Company Ltd (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 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.

AG 16-6 asianglass

27

ANALYSIS: Container glass

the end of the next year with products for domestic markets and for exports to Vietnam, Cambodia, Laos and Myanmar.

“To meet the huge increase of the domestic demand of packaging glass we have decided to put an additional investment into this new facility to enhance overall capacity of BJC,” said BJC Packaging Supply Chain President Pattaphong..

The plant will raise BJC’s production capacity to 3,800 tonnes of glass containers per day for beer, drinks, various other beverages, foods and pharmaceutical products.

In Southeast Asia, BJC has expanded its operations to Malaysia, Vietnam, Indonesia, Myanmar, Cambodia and Laos. Also in China, Australia and India.

BJC is partner with US based O-I, in an equal equity joint venture in Singapore based BJC O-I Glass Pte Ltd that owns production plants in Malaysia, Vietnam and Thailand through acquisition, under which BJC’s main container glass production unit Thai Glass Industries Ltd (TGI) controls Thailand based Thai Malaya Glass (TMG) and owns and operates Malaya Glass Products Sdn Bhd (MGP) and Malaya Vietnam Glass Limited (MVG) jointly with O-I. However, glass container user companies have been contributing greatly to the expansion of demand for glass packaging by attracting customers to glass. Besides improved light weight, strength and health related safety, the glass containers are now getting new look in shape, style and aesthetic appeal of design by the beverage and drink manufacturers Southeast Asia’s major drink producer Thailand based Thai Beverage Public Company Limited (ThaiBev) has been thriving on glass packaging as its customers favour most popular Chang beer in glass bottles, in 320 ml and 620 ml. It has relaunched its signature glass bottle Chang Classic updating a classic design in emerald green colour. “Such updating has created improved demand since relalunching late last year,” said Charoen Sirivadhanabhakdi, Chairman of ThaiBev. Chang beer is distributed to 30 countries worldwide. In less than one year of relaunching emerald green bottle its demand has largely increased both at domestic and world markets. The presentation of Chang Classic in new attractively designed bottles has been able to stimulate the customers’ choice. “With a totally new look, the emerald green glass bottle of Chang Classic beer was welcomed by consumers and achieved a major breakthrough in both revenue and profit growth, reflecting the beginning of a steady journey towards becoming the leader of the beer segment in ASEAN,” said Charoen.

The new design is highly potential as it updated with taller neck and elevated bottle shoulder affirming its relevance and appeal to a modern beverage market, marking a distinct departure from its previously less defined and distinct outline, according to the London based global rebranding and brand development journal, Transform Magazine.

ThaiBev is also a major alcoholic beverage producer in glass bottles in Southeast Asia.

Caring Philippine FEMSA

In carbonated soft drink bottling, glass still has a command in the markets of Southeast Asian countries. In ASEAN countries returnable glass bottles are still well competitive against alternatives, although, the main growth of the business is taking place in PET and others.

PET has a greater influence in the Philippines like other countries of Southeast Asia, but the country’s leading carbonated soft drink bottler CocaCola FEMSA Philippines, with19 plants spread around the country, continues returnable glass bottle packaging in large scale giving support to glass in competition against its non-returnable plastic bottle uses, while it operates one of the world’s largest plants for bottling Coca Cola, Sprite, Royal True Orange and other brands of soft drinks.

Its biggest plant, Sta. Rosa, in Laguna, refills returnable glass bottles with firm continuation as the bottler intends to tap the market by using glass bottles side by side with the largest bottling in PET at Canlubang plant, which has installed, two years ago, a mega plant capable of producing 81,000 bottles per hour. Such development is rarely seen in glass bottling, but FEMSA Philippines did not ignore glass.

28

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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.

PT. IGLAS Indonesia Location: Surabaya, East Java, Indonesia Products: Packaging glass for drinks, food and pharmaceutical industries.

Markets: Domestic and export markets Others: PT. IGLAS produces glass bottles of sizes ranging from 60ml to 1000ml in flint, amber and green. Its products are supplied to the domestic and export markets.

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ANALYSIS: Container glass

“Our operations in the Philippines support returnable glass bottles and help glass stay economic and competitive,” said Juan Dominguez, Corporate affairs Director for Coca Cola FEMSA Asia Division. FEMSA is a Mexico based company and one of the world’s major franchise bottlers of Coca-Cola products and operating in nine countries including Philippines, first in Asia since 2013.

FEMSA Philippines said in competition against its PET bottles, it has introduced a rival glass bottles in a packages of both allowing the consumers to opt for returnable glass too.

For instance, in a recent package, it has introduced a 237ml glass bottle, Timeout, and the 300 ml PET bottle, Mismo. Timeout is sold at Philippines Peso 7, and has effectively helped the company boost sales; while Mismo at Peso10 has become an alternative to returnable bottles. This has strategically helped production lines of returnable glass bottles remain economic in competition against plastics.

Despite tougher rivalry from the alternative packaging materials, the beverage packaging glass market is steadily expanding in the Philippines with higher economic growth in recent years.

Market leader San Miguel Corporation (SMC)’s partnership, under its packaging arm San Miguel Yamamura Packaging Corporation (SMYPC), with Japan’s glass technology provider and glass bottle manufacturer Nihon Yamamura Group, have been helping glass packaging rise in the Philippines. SMC’s beer producing unit, century old San Miguel Brewery Inc (SMB), the largest producer of beer in the Philippines, is the biggest user of SMYPC glass bottles.

SMYPC provides total packaging solutions in the Philippines and other countries. Its range of products includes glass, plastics, metal, flexibles, PET, moulds and paper and technical expertise.

VIETNAM 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.

PHILIPPINES

Indo Malay subsidy withdrawal

To sustain the growth of the soft drink packaging industry, the manufacturers are looking at ways to cut production and distribution costs, putting pressure on the glassmakers for supplying high-strength, light-weight and economic glass bottles.

Like rest of Asia, use of returnable glass bottles was a preferred packaging option in Indonesia, its popularity is now being threatened on economy reasons due to increasing prices of glass bottles, following higher cost of production of glass, and rising transport cost.

Increase of fuel prices has led to a sharp rise in the cost of shipping glass bottles across the island nation and returning them to the manufacturers. The soft drink bottlers were looking at more affordable ways of packaging material, particularly PET and thin wall packaging. Because of that the glass bottle manufacturers are under severe pressure to reduce production cost, but gradual withdrawal of energy subsidy is a major blockade on the way.

Similar situation exists in Malaysia, where the government asked the gasintensive glass industries to become cost effective without depending on state subsidy on natural gas supplies by the state organization.

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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.

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.

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ANALYSIS: Container glass

However, specialist glass container manufacturing is still lucrative in Indonesia and Malaysia which has large consumers for high-value products, according to the industry sources. Malaysia and Indonesia are currently considered to be highly potential for manufacturing glass bottles for cosmetic and beauty care manufacturers. Many cosmetic products, as well as cosmetic packaging product manufacturers, which previously had manufacturing facilities in China, are opting for another base in the ASIAN region, especially, in Indonesia or Malaysia.

Indonesian glass packaging industry is currently experiencing a slow down, as in other sectors of packaging, while overall manufacturing industry is hit by a weaker demand due to slower economic growth. However, the outlook for future growth of glass packaging is expected to be brighter following steady improvement of the economy and rise in consumption throughout the country, not only among the urban population.

Current drop in growth is expected to bounce back in the coming years with beginning from the next year, forecast the industry sources. Total packaging sector expects sales growth returns to double digit as the domestic and global consumer markets are improving.

“We are expecting the under-utilisation of production capacity at the factories will improve in the next year helping packaging sector grow better,” said Henky Wibawa, executive director of Indonesia Packaging Federation (IPF).

Due to global economic slowdown, Indonesia’s export led economy was weakened over the past few years and the packaging industry has been hit by weak sales with annual growth of seven percent on average, compared to some 11 percent in 2010, the sources estimated.

Compared to Indonesia, the situation in Malaysia is better. Johor Bahru based Malaya Glass Products Sdn Bhd is looking for additional capacity following higher demands from the domestic and foreign customers. Currently, the company is continuously improving capacity utilization for maximizing output, specially, in terms of revenue by selling premium quality packaging

glass in a highly competitive atmosphere under ASEAN economic bloc. In normal operation Malaya Glass Products has a production capacity of 445 tons per day or 165,985 tons per year. The company’s sales in terms revenue has a steady growth.

Vietnam boom

Higher and steady economic growth since past decade has boosted up consumptions in Vietnam in almost all sectors, and most particularly, in beverage, drinks and foods. Riding on booming consumption, Vietnam is becoming the major growth point in Asia for beverage packaging glass industry in the coming years, according to the industry sources. Food and beverage industry sector is expanding rapidly in Vietnam with a stable economic growth of at least six percent a year since past several years.

Many foreign beer manufacturers, including Japanese and Thai, are planning to open plants in Vietnam to exploit the double digit growth, while existing foreign operators as well as domestic breweries, including market leader SABECO, have expanded production, said Vietnam Beverage Association.

The Vietnamese Ministry of Industry and Trade forecasts that the country’s food sales in 2011-2016 is to grow by 5.1 percent per year to some US$29.5 billion. Per capita consumption will rise by 4.3 percent, equivalent to VND5.8 million per year. In the same period, alcoholic beverage sales are projected to grow by 7.5 percent while market of non-alcoholic beverages are estimated to expand at 8.2 percent.

According to the VBA, Vietnam consumed 3.4 billion liters of beer in 2015, an increase of 10 percent over the year before and 41 percent if compared with 2010, making Vietnam a major beer drinker in Asia.

With higher consumption in food and beverages, newer opportunities are looming on the horizon for the packaging glass manufacturers to expand sales.

Among the new products, fish sauce appears to be most promising.

In recent years in Vietnam, fish sauce has emerged a major food packaging

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.

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ANALYSIS: Container glass

industry that uses glass bottles. In Vietnamese dining tradition, seasoning is an essential item. Its demand in the domestic markets of Vietnam is increasing rapidly since past few years. The sector is growing at an estimated 25-32 percent per year, according to the researcher Nielsen Vietnam.

Among seasonings, fish sauce is considered to have the greatest potential growth. Its consumption has reportedly increased to 75,000 tonnes in 2016 from15,434 tonnes in 2005. By 2022, its annual consumption is expected to rise to roughly 100,000 tonnes. Roughly, five tons of fishes produce one ton of pure fish sauce.

Industry sources said, Viet Nam’s fish sauce market is worth over US$600 million this year, of which industrial production accounted for three quarters.

Many of the traditional producers have reverted to selling their pure fish sauce to industrial producers, who then make and sell products under their own brands, preferably in glass.

Currently, the industrial manufacturers of fish sauce have been using glass bottles for its packaging by replacing previous favourite PET bottles. Glass bottles are used for quality packaging to ensure hygiene and better shelf life.

The glass bottles used are mostly of 500 ml.

Dozens of fish sauce factories are now active in Vietnam. Higher profit attracted many to invest in fish sauce production and marketing, said Le Cam Thuy, deputy director of Cam Van Fish Sauce, based in Nha Trang. “If produced industrially, one litre of pure fish sauce can be made into several litres with an aromatic flavour that consumers will like,” said Le Cam. The fish for production of fish sauce is caught from the sea near the sauce barrel house, located mostly in Phu Quoc and Phan Thiet. To ensure freshness, the fish is salted immediately after being caught. Before being put into wooden barrels, fresh anchovies (preferred fish) must pass through some rigorous checks for other fish, salinity, freshness and dryness to ensure top quality. Fish sauce producers have created a market for several hundred millions of glass bottles per year in Vietnam in the coming decade.

BGI AND BJC BOTH BELIEVE GLASS NEEDS TO LET OTHER PACKAGING SOLUTIONS PROSPER TO HELP EXPAND THE MARKET”

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.

34

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ANALYSIS: Lighting glass

Switching off LED to hit glass suppliers Rohan Gunasekera discusses how changing illumination technology in southern Asia is having a knock-on effect for the region’s lighting glass providers.

T

he change in technology in the lighting industry from conventional lighting to light-emitting diodes (LEDs) spells bad news for suppliers of glass in the Indian subcontinent. Not only have the advantages of LEDs –energy efficiency and longer life – along with a steady reduction in cost, made them a more attractive alternative to conventional lamps like incandescent bulbs and Compact Fluorescent Lamps (CFLs), but government initiatives in India, like those elsewhere, themselves are adding impetus to the shift. Most CFLs in India are made domestically while two-thirds of LEDs are imported. A sharp reduction in demand for conventional glass bulbs is evident and lighting companies are closing their conventional plants while glass producers supplying lamp shells will lose much of that business.

Furthermore, the technology switch has also lowered entry barriers to the lighting industry, which traditionally had been high, given the need for glass melting furnaces, with electronics companies now entering the fray, sharply increasing competition. However, some suppliers of specialty glass like borosilicate glass could see continued demand.

“Globally, the entire lighting industry is to shift to LED in time to come, and given the speed of change, disruption of the industry is imminent,” declared Sunil Sikka, President of the Electric Lamp and Component Manufacturers Association of India (ELCOMA), the body representing the electric lamps and components manufacturers in India. “Some nations will take extra time but most are taking very powerful steps to make the switch and in a couple of years’ time all light sources in the world would be LEDs of different sizes and shapes.”

ELCOMA expects the lighting industry in India to grow exponentially in the coming years, as more awareness is created to adopt green and energy efficient lighting along with various government initiatives. The LED industry alone is anticipated to grow by 60% of the overall lighting industry by 2020.

According to a 2012 report from the consulting firm McKinsey & Company, by then only 15 percent will be CFL in India. Other types, such as halogen (a more efficient version of the incandescent lamp) and linear fluorescent bulbs, will make up the rest.

36

asianglass AG 16-6

ELCOMA says the Indian lighting market will also be driven by the exceptional growth in the LED lighting industry, which is projected to have a CAGR of over 30% during 2016-2021, due to increasingly affordable prices of LED lights coupled with implementation of LED bulbs distribution scheme by the government of India at subsidized rates. It believes that increasing urbanization and smart cities initiatives will also encourage use of LED lights. In 2015, LED lighting market in India was dominated

by LED bulbs and lamps, followed by LED batten lights; and this trend is forecast to continue through 2021.

CFL market growth

Lighting industry suppliers estimate the CFL market in India was at Rs3,500 crores during fiscal 2015 with the market having grown at about 6% from the year before. While the widespread increase in adoption of LED across various lighting applications has brought down growth prospects of CFLs in India, they are still preferred over incandescent lamps.

India has over 60 local firm operating in the CFL market with large firms in the organised sector, with wide distribution networks and pan-India reach that includes multinationals, accounting for 45% of the market, and the unorganised sector, consisting of smaller companies, 55%.

In the CFLs market the big firms are Philips India Limited, GE Lighting, OSRAM Licht AG, Wipro Enterprises Limited, Surya Roshni Limited, Havells Industries Limited, Bajaj Electricals Limited, Crompton Greaves Limited, Orient Electric, Halonix Technologies Limited, Venture Lighting India Limited, Finolex Cables Limited and Anchor Electricals Private Limited. The LED lamps and luminaires market has Philips India, C&G LED Lighting Company, Wipro Enterprises, Surya Roshni, Havells Industries and Bajaj Electricals Limited.

In the organised sector, the Indian CFL industry has two different business models with big companies like Philips Lighting, HPL, Surya Roshini and Orbit having their own manufacturing capabilities while other majors like Bajaj Electricals and Crompton Greaves outsource to other vendors to manufacture for them. Philips Lighting, Crompton Greaves, Surya Roshni and Bajaj Electricals are the top firms in terms of sales and market share, with estimated sales of over Indian Rs1,000 crores each and 40-50% share of the market. Next come firms with sales of Rs500-1,000 crores each with

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ANALYSIS: Lighting glass

market share of 20-25% like Osram, Havells, Wipro Lighting and GE Lighting.

Companies with sales below Rs500 crores and market share of 20-25% include Orient Electric, Halonix, Venture Lighting, Finolex, Anchor–Panasonic and THORN. According to ELCOMA, in India initially lead alkali silicate glass was the only glass used for the body of the lamp as well as the stem initially, which was soon replaced by lead glass, followed by soda lime glass shells. The country has the latest technology ribbon glass shell plants as well as glass tube drawing plants meeting local and export demand.

Glass bulb shells are often supplied by a host of small manufacturers whose furnaces produce glass for other industries as well, like containers and pharmaceuticals, tableware, and handicraft items, not only lighting bulbs and tubing. These include firms like Asha Glass Services, in Vadodara, Gujarat, Advance Group of Glass Industries, Om Glass Works Pvt. Ltd. and Tiger Son’s Glass Industries Pvt. Ltd. in Firozabad, UP. Over 80% of the CFLs manufactured in India are locally consumed and the rest are exported to countries like the Philippines, Indonesia, Vietnam, Sri Lanka and Malaysia. India is the second largest consumer of CFLs and also has the second largest capacity in the world.

CFL manufacturers say that the increasing penetration of LEDs among urban centres and in high-end retrofit markets is having an adverse impact on the long-term growth potential of CFL in India. However, there’s still demand from the increasing real estate and construction development in country, which act as demand centres for CFL and penetration of CFL as a retrofit option, especially in the rural regions of the country. CFL manufacturers in India have been focusing on technology advances in recent times aimed at reducing the mercury content in the CFLs in order facilitate easier end of life disposal. The average mercury content in CFLs has fallen by at least 20% in the last one year. Some manufacturers have made further reductions, dropping mercury content to 1.4-2.5 milligrams.

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Future limitations

With sales of conventional bulbs limited in future, lighting manufacturers are shifting into the LED market. The smart ones are still generating plenty of cash from conventional lighting and planning to exploit the anticipated industry consolidation when some manufacturers withdraw from the business – a void they plan to fill. The increasing market share of LEDs is challenging the growth of CFLs along with stricter regulations for mercury, as well as for proper end of life disposal for CFLs. Global lighting industry leader Philips, whose subsidiary Philips India Ltd. has a manufacturing plant for conventional lamps in Vadodara, says the group’s strategy is to address the transition from conventional lighting technologies to LED while optimizing cash generation from the conventional lamps business. It says a significant but decreasing portion of the group’s sales are derived from conventional lighting technologies (57% of sales in 2015 compared to 74% in 2013), while a significant and increasing portion of the group’s sales are derived from LED technologies (43% of sales in 2015 compared to 26% in 2013). In 2015 Philips India spun off its lighting business into a separate company, Philips Lighting India Ltd., to focus on the LED market in line with its global strategy to drive value in its core business areas. Harsh Chitale, managing director of the new unit, said at the time that India is among the top five markets for lighting business of Philips. The lighting business accounted for just over half of the company’s total sales in India, followed by healthcare and consumer lifestyle business. Philips had a 30% share in conventional lighting and LED lamps by value. Chital said Philips started local manufacturing of LED tube lights and luminaires, and expand its LED manufacturing capacity at its two plants at Vadodara and Mohali, and even expects to export once it is able to meet local demand.

Lighting products sales and profits have been growing steadily since 2010-11 for Indian firm Surya Roshni Limited. Surya, the second largest seller of GLS and FTL in India, is one of the few lighting companies with 100 per cent backward

AG 16-6 asianglass

37

ANALYSIS: Facades

1. Lighting Industry in India (Value in Rs. Crores calculated at wholesale prices Year 2015 Lighting Industry in India (Value in Rs. Crores calculated at wholesale prices Year 2015 (Jan-Dec) Lighting Industry in India (Value in Rs. Crores calculated at wholesale prices Year 2015 (Jan-Dec)

Value 2010 Rs. Crores

Value 2011 Rs. Crores

Value 2012 Rs. Crores

Value 2013 Rs. Crores

Gr %

Value 2014

Growth %

VALUE 2015

Growth %

Lamps category including GLS, FTL, CFL and other lamps

3600

4068

4515

5011

11

5562

11

5300

(-) 4.7

Luminaires including High Mast

3500

4270*

4953

5597

13

6213

11

6524

5

Accessories, Components and Control Gears

850

952

1001

1071

7

1156

8

1295

12

Total (Excluding LED Lighting)

7950

9290

10469

11679

12

12931

11

13119

1.4

LEDs

500

850

1250

1825

46

3395

86

5092

50

TOTAL LIGHTING INDUSTRY VALUE

8090

10140

11719

13504

15

16326

21

18211

11.5

Category

Eveready Industries India Ltd., the dominant flashlight supplier, has expanded integration, making all its components. It claims to have Asia’s largest ribbon its portfolio of LED-based lighting solutions and diversified into LED based glass plant from Dema Glass UK at its facility in Gwalior, MP, with annual Managing Director Amritanshu Khaitan says its lighting and electrical capacity of 400 million GLS and 25 million FTL shells. Its other lighting plant is 2. Following data is quantity in million pieces forflashlights. the same period segment witnessed significant growth last year, driven by the enhanced scale in Kashipur, Uttarakhand. Surya has an annual installed capacity of 187 million and scope of LED-based lighting products. During FY 2016-17, the firm will focus units for GLS lamps and 62.8 million units for fluorescent tube lamps. Surya is return on investment a strategic asset light nowCategory making LED in-house at Kashipur in Uttarakhand and Gwalior in MP with 2009 2010 2011 2012 2013 Gron%enhancing 2014 Gr % through 2015 GR outsourcing % model for manufacturing LED products and home appliances. Chairman B. M. production supported by the Surya Technology & Innovation Centre (STIC) at Khaitan 904 Noida, an advanced lighting with specific focus 3% Incandescent 766laboratory 797and research 757 centre758 780 16% 855 (-)5 “The reason for the shift is that LEDs are superior in every aspect – longevity on LEDs. In the year to 31 March 2016 its lighting division achieved sales growth Lamps or age of light source, lumens per watt, colouring index, the electronic controls of 24% to Rs1,472 crores. which go with them very easy 245 to use, they are environmentally Havells India Limited, like other182 suppliers is194 finding that CFLs bulb234* sales are 17% Fluorescent 179 200 257LEDs make 10% (-)5 friendly,” says Sikka of ELCOMA. “The change to Solid State Lighting is only a fallingLamps and LEDs rising. “We have not stopped making conventional lamps yet but matter of time. The price of LED is one factor - the price is coming down every the quantity of ordinary lamps we make has come down from 3 million to 1-1.5 day. Maybe448 in a couple of years LEDs will be much they are today millionCompact a month,” says Sunil Havells India.

“So till 13% 255Sikka, who 304is also President 340 of401 453 (1)% 381cheaper than(-)15 Fluorescent because of the economies of scale and advent of new technologies in making it it sells we will still make it. But in the next 6-12 months volumes may go down more efficient. further.”Lamps The total lighting turnover of Havells, which makes only CFL bulbs, never Sikka told Asian Glass that he believes the glass industry will be hit hard by having got into GLS manufacture, is around Indian Rs 800 crores and this year LED Retrofit the switch.4.86 “We too look at other constituents62 of industry like glass which will will probably Lampscross the Rs 1,000 crores mark. Almost 60% of it is of LED and next take the hardest hit. LED will replace all conventional lighting – ordinary lamps year it will probably be 70%. Havells was never into glass making and was buying Street or GLS (General halogen lamps. So the glass glassLED for CFLs from outside sources, mostly importing from Thailand as it thought 0.23Lamp Shape), fluorescent tubes, 0.72 Lightswas not up to standard, given the need for lead free glass. industry, especially furnaces, is going to lose out completely.”

Indian glass Sikka believes there will still be demand for glass to use as LED filament such as specialty types like Borosilicate glass. According to glass experts, the optical Reducing capacity HPL Electric & Power Limited says capacity at its bulb plants has been only clarity of borosilicate glass is very high, with many high-quality flashlights using it for the lens. This allows for a higher percentage of light transmittance 60% in the past three years. The firm has six manufacturing facilities located through the lens compared to plastics and lower-quality glass, which cannot across the states of Haryana and Himachal Pradesh with furnace capacity of compete in this respect. Several types of high-intensity discharge (HID) lamps, 120 tonnes for bulb shells. Its Sonepat facility has a capacity for 26 million such as mercury vapor and metal halide lamps, use borosilicate glass as the outer units of lighting equipment including CFL, LED and luminaires and street lights.

HPL says it seeks to use existing CFL manufacturing capabilities to capture any envelope material.Organic light emitting diodes for display and lighting purposes also uses borosilicate glass. residual demand for CFLs that may be created due to a shift in focus of CFL But Sikka feels the glass industry supplying the lighting industry is under manufacturers towards manufacture of LED lamps and luminaires. threat unless it can find new applications or old applications can compete Wipro Limited says its domestic lighting business has seen a structural with engineering plastics. “Now most LEDs are in plastic. Also, handling glass shift towards LEDs and tapering CFL demand. Its Wipro Lighting unit has three is a little difficult even though the cost of glass is comparatively cheaper than manufacturing facilities at Mysore, Waluj and Baddi for lighting solutions.

38

asianglass AG 16-6

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THE INCREASING PENETRATION OF LEDS AMONG URBAN CENTRES AND IN HIGH-END RETROFIT MARKETS IS HAVING AN ADVERSE IMPACT ON THE LONGTERM GROWTH POTENTIAL OF CFL IN INDIA

plastic.” He notes that most developed countries have banned GLS lamps.

Even underdeveloped countries like Columbia and other Latin American countries have banned the use of GLS or ordinary lamps. LED filament lamps are replacing them.

“In the Indian context there is another disruption, which is governmentled,” he said. “The Indian government is trying to replace 2 billion light 1. Lighting Industry in India (Value in Rs. Crores calculated at wholesale prices Year 2015 points with LEDs. It has started different schemes under the Prime Minister.

The Power Ministry has created EESL (Energy Efficiency Services Ltd.) which is buying LED lamps and tubes through ebidding at lower prices than the Lighting Industry in India (Value in Rs. Crores calculated at wholesale prices Year 2015 (Jan-Dec) market and then distributing them to the states and lamps directly to consumers. In 3-4 years this will change the lighting industry entirely.”

Energy Efficiency Services Ltd. was established in 2009 as a joint venture of four power-sector public sector units - NTPC, Power Finance Corporation, Rural Electrification Corporation and Power Grid Corporation - mainly Value Value Value Value Gr % Value Growth VALUE Growth % to facilitate the implementation of2010 the government’s efficiency 2013 2011 energy2012 2014 % 2015 Category projects, which aims to make India anRs. LED nation.Rs. The government Rs. has aRs. Crores target of replacing 77 crore conventional incandescent with LED. In Crores Croresbulbs Crores a round of procurement in April 2016, under which EESL got 5 crore bulbs Lamps category 3600price for 4068 11 5562 11 5300 (-) 4.7 from 17 manufacturers, the procurement one 9 watt4515 bulb came 5011 down to Rs 54.9, GLS, allowing the government to sell it between Rs 75 and Rs including FTL, 100, depending on the states’ tax structures. Among the 17 manufacturers CFL and other lamps were Phillips India Ltd., Bajaj Electricals, Crompton Greaves Consumer Electricals, Orient Electricals, and Wipro Enterprises.

Luminaires including High Mast Import pressures

3500

4270*

4953

Most LED products sold in India are imported, mainly from China although Accessories, 1001 the bigger brands may use Western850 or Japanese 952 sources. Most low cost Components players import Chinese and LEDs and Chinese chips. This is despite the fact that India is a hugeGears market given the size its population alone and also that Control many of them are still without modern lighting products.

“India has not started LED making LEDs yet because it is too10469 costly,” says Total (Excluding 7950 9290 Sikka of ELCOMA. “No Indian firm has the money. Unless you have, firstly Lighting) the technology, secondly the IP rights and thirdly you can invest US$1 billion or more, no company can do it. With all these limitations it is far too LEDs 500 850 1250 difficult for anyone to enter this space. Those who had entered originally now have the lead and size.

TOTAL LIGHTING 10140 in11719 The lowering of has also led8090 to intense competition the lighting INDUSTRY entry VALUE market. “With glass bulbs, only those who had glass furnaces and could make shells could enter the industry for without glass you cannot make bulbs,” says Sikka. “But with LED, such entry barriers are not there - anyone can buy the material. This has now led to competition between lighting

5597

13

6213

11

6524

5

players and non-lighting players. There are lots of new players entering into the arena. Now it is not a complete monopoly of lighting companies – 1071 7 1156 8 1295 12 anyone can enter.”

According to lighting industry expert HS Mamak, an adviser to ELCOMA, only five or six international companies have most of the Intellectual Property Rights to LEDs. Indian firms follow the rules with regard to IP rights and find it risky12 to try and develop the 11 chip unless India can encourage 11679 12931 13119 1.4 the multinationals to come and start manufacturing locally. For this India needs to increase use of LEDs. Mamak believes the correct approach at present is to go for the components where there is no IP problem.

1825 46 3395 86 5092 50 Many Asian electronics companies, especially in Japan, have upgraded their R&D lines for the production of OLED lighting panels to supply luminaire 13504 16326 18211 11.5 manufacturers.15 For example, LG Display21 announced in March 2016, plans to invest in a new OLED light panel manufacturing facility, located in Gumi, South Korea, to penetrate the general lighting market. The company plans to focus on decorative and task lighting in luxury hospitality and high-end retail stores in order to gradually expand to the general lighting market.

2.

Following data is quantity in million pieces for the same period Following data is quantity in million pieces for the same period Category

2009

2010

2011

2012

2013

Gr %

2014

Gr %

2015

GR %

Incandescent Lamps

766

797

757

758

780

3%

904

16%

855

(-)5

Fluorescent Lamps

179

182

194

200

234*

17%

257

10%

245

(-)5

Compact Fluorescent Lamps

255

304

340

401

453

13%

448

(1)%

381

(-)15

40

LED Retrofit Lamps

4.86

62

LED Street Lights

0.23

0.72

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ANALYSIS: Float glass

Empty chairs and empty tables where has all the float glass gone?

Jason Sim* talks to Asian Glass about how China’s float industry is going through dramatic changes.

I

t is a fact that China is the world’s number 1 producer of float glass accounting for 55% of the world’s production capacity.

For those who have been importing float glass from China for the last few months, one will notice a phenomenon of unusual strong demand in China’s domestic market.

Traditionally the peak season of China glass industry starts from September and since July prices of float glass has been going up and it reaches its peak at the end of September just before China’s National Day holidays. It is the magnitude of the increase in the float glass price that is unheard of. Prices of float glass has increased by as much as 40% in certain parts of China within the 4 months’ period and to date many glass processors in China are still unable to get a steady supply of raw glass.

China’s float glass industry is driven by its building and automotive industry.

Before 2005 there was a reported 25 float glass plants in the country that met Western standard and by 2013 the number has risen to 243 glass float lines with many new players jumping onto the bandwagon. Since 2013 the float glass industry started to experience an oversupply as the government’s reforms to curb the rising property prices began to take effect. Another reason for the oversupply is that many of the countries that imports China float glass have been slapped with either anti dumping duties or required to meet the local standard for float glass which makes it more difficult for imports. These countries include Brazil, India, Malaysia, etc... The popular joke for the glass industry is that weight for weight, cabbage costs more than float glass in China.

As the float line runs 24/7 non stop after it starts, the oversupply resulted in many of the float lines going for early cold repair and production was halted till better times. To make matters worse, the government has been imposing strict environmental controls that increases the cost of production especially for the older or smaller float lines. Some glass companies were even forced into bankruptcy notably Farun Glass which shuts down it production base in Jiangsu after 22 years in business in October 2015. The overall effect is a weakened glass industry with all the glass producers selling at a low price.

Under a prolong period of selling float glass at a marginal profit, the float glass companies in Shahe region at the northern part of China started the momentum by increasing the price of float glass this year July. The initial increase was gradual but with the help of modern technology in the form of weChat posting, the market gets daily price updates and soon the buildup spreads into the other parts of China, namely the Southern and Eastern region.

Seeing the float glass price increasing every week, demands soon overtake supplies. Mr Joe Han, the Sales Manager for Glorious Future Glass commented that technology has allowed up-to-date information to be published to a greater audience and this really affect the purchasing behavior, much like that

42

asianglass AG 16-6

No. cold repair lines by region (beg. 2016)

Reasons for cold repairs

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ANALYSIS: Float glass

of the stocks market.

By August the buying frenzy has taken over the whole country as glass processors would order their float glass even before they are being produced for fear of paying an additional 2~3% more if the order was placed a couple of days later. Suddenly the inventory of float glass was shifted from the float lines warehouses to the glass processors’ warehouses. As a domino effect, some of the construction projects also asked for an earlier supply of their glass for fear of having shortages when they really need them.

By mid of September, the float glass prices in China reached its highest point since 2013 and many became concern if the on-going price hike will cause the bubble to burst. There were 2 national level conventions being held in September to discuss about the situation and the general agreement was to hold the price to allow the market to settle during the remaining peak season month of October. On 21st September, the Ministry of Transport in China tightened its control of the transporting of overweight cargo which reduces the load of the float glass that are allowed on highways further adding stress to the cost of purchasing.

China’s National Day celebration from 1st to 7th October became the closely watched event as prices dipped slightly just before the holidays as some of the glass producers tried to clear their inventory before the week long holidays.

Throughout the holidays there were opposing speculations to whether the price will continue to rise or drop in the daily forums. When business resume after the holidays, the industry takes on a cautious stand as orders continue to come in but at a slower pace than before with the price maintaining at the pre-holiday level.

Indeed China’s float glass industry is the most dynamic in the world with 294 active float lines to date. Whatever happens in China does affect the rest of the world. Although prices increased by up to 40% in certain parts of China, we see a smaller increase of between 10~15% for the exports market as many of the key glass producers try to manage the price to hold on to its shrinking overseas market share against their overseas counterparts. Many importers also reported that they are only aware of the situation at the start of September instead of earlier.

There are 5 key producers of float glass in China and in this information age it will be interesting to see how China’s float glass industry is picking itself up from the ashes that almost burn itself up due to its massive expansion in the early years. I believe that this episode of price adjustment will be a watershed for many key float glass producers as it allows them to take a breather and to decide how to move forward with their business in such a competitive environment. Some of these producers are investing in R&D to value add their float glass into coated glass like self cleaning, low e, etc... Others are vertically integrating their float glass businesses into having their own processing facilities and even their own brand of finished glass products.

While the empty warehouse is a welcoming sight to the float glass producers, they know that by the end of the year, the cycle will come full round when the orders start to slow down again. China float glass producers have been able to overcome past challenges by re-inventing themselves. The international stage is set for China as its glass industry seeks to transform itself from a global raw glass supplier to a supplier for performance and valued added glass that has been the domain of its European, Japanese and US counterparts.

Supply focus

As of June 2016, 296 float glass lines were available in China and 226 lines were in operation. The total capacity was 150,179t/d, deceasing by 1.00% compared with thtse in June 2015 and increasing 0.81% compared with previous month.

During January-June 2016, there were 12 newly fired or re-fired lines and 12 lines in cold repair or shut down. The total melting capacity increased by 1,520t compared with the same period of 2015.

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*Jason Sim is the Marketing Manager for Kibing Group (Singapore). Kibing Group has 25 float lines accounting for 5% of the world’s float glass production.

Float glass output (m. cases, based on leading suppliers) Year

Month

Output

Increase*

China Total

Growth (%)

Oct

51.63

6.12

484.12

1.73

Sept

50.41

4.26

432.37

0.46

Aug

49.46

2.99

378.06

-1.6

Jul

44.7

-2.44

328.74

-2.62

Jun

47.35

0.13

285.36

-1.76

May

47.88

-0.15

238.02

-2.12

Apr

47.41

-0.08

190.32

-2.48

Mar

45.53

-3.63

137.29

6.52

Feb

45.32

-2.16

92.19

-5.5

Jan

46.93

-3.55

Dec

45.72

-5.54

567.11

-10.77

Nov

45.73

-4.43

521.63

-10.74

Oct

45.45

-6.55

475.84

-10.88

Sept

46.17

-4.53

430.4

-10.69

Aug

46.42

-6.95

384.16

10.94

Jul

47.19

-6.3

337.62

-10.68

Jun

47.2

-7.2

290.33

-10.53

May

48.05

-7.18

243.2

-9.98

Apr

47.65

-6.05

195.31

-9.1

Mar

48.67

-4.91

146.37

-9.18

Feb

47.48

-10.04

97.64

-9.32

Jan

50.48

-4.74

2016

2015

AG 16-6 asianglass

43

ANALYSIS: Float glass Import and export of glass in H1 2016 Product

Export

Import

Volume (Kg)

Value (USD)

Volume (Kg)

Value (USD)

Rolled glass

12,320,890

5,208,206

1,536,041

5,653,402

Ordinary flat glass

51,002,184

30,769,289

6,780,412

138,741,200

1,018,291,293

299,310,059

97,716,972

259,944,896

Coated glass

273,740,142

79,203,416

3,017,846

4,034,247

Colored glass

129,561,274

45,129,429

8,200,174

11,290,631

Bent, edge-worked etc 7003 & 7005

198,816,707

271,705,263

38,671,079

490,013,918

1,132,164,531

1,186,694,586

12,634,701

132,622,151

53,651,514

95,075,283

201,883

730,902

Glass mirror

466,637,131

829,547,414

2,927,139

114,592,240

Decorative glass*

187,212,430

282,902,387

879,285

2,951,714

Float glass

Safety glass Insulated glass

*including glass block, glass mosaics etc.

Float glass output (m. cases, based on leading suppliers) Hebei Year

2016

2015

Month

Output

Shandong

Growth rate % *

Output

Hubei

Growth rate % *

Output

Fujian

Growth rate % *

Output

Guangdong

Growth rate % *

Output

Growth rate % *

Oct

144.67

-15.85

46.52

-24.07

43.48

78.20

39.52

-1.50

37.83

21.64

Sept

129.12

-17.07

41.42

-25.32

39.06

77.38

35.49

-1.42

33.79

20.64

Aug

110.27

-20.73

36.66

-26.1

34.56

76.05

31.54

-1.38

29.59

18.31

Jul

95.16

-22.17

32.26

-26.23

30.05

74.51

27.53

-1.43

25.5

15.86

Jun

84.59

-19.16

27.87

-26.23

26.95

79.55

23.63

-0.92

21.52

13.08

May

70.52

-18.84

23.87

-25.24

22.19

77.38

19.79

-0.56

17.99

13.93

Apr

56.71

-18.21

19.94

-22.86

17.47

73.83

15.78

-0.19

14.37

13.6

Mar

42.54

-17.03

15.27

-23.61

11.94

0.34

10.91

13.88

Feb

28.74

-16.1

10.76

-17.9

7.93

1.2

7.29

11.8

Jan

14.46

-18.39

5.61

-18.34

4.13

1.23

3.63

4.01

Dec

204.95

-11.75

72.75

-4.29

48.24

297

37.92

-13.5

Nov

188.75

-12.10

67.09

-2.89

26.72

-4.81

44.10

293

34.33

-14.43

Oct

171.88

-12.95

61.27

-2.11

24.40

-3.56

40.12

292

31.1

-14.84

Sept

155.70

-13.12

55.46

-0.68

22.02

-2.65

36.00

293

28.03

-14.72

Aug

139.08

-13.82

49.61

0.38

19.63

-1

31.98

289

25.01

-14.5

Jul

122.18

-12.88

43.73

1.09

17.22

0.7

27.92

288

22.01

-14.16

Jun

104.51

-13.92

37.78

1.61

15.01

1.83

23.85

286

19.03

-13.07

May

86.89

-14.04

31.93

2.64

12.51

1.38

19.90

285

15.79

-13.24

Apr

69.36

-13.45

25.89

4.69

10.05

0.20

15.81

281

12.65

-12.76

Mar

51.07

-14.72

19.85

6.09

7.61

-0.52

11.90

281

9.5

-13.08

Feb

34.27

-14.47

13.12

4.46

5.23

-3.15

7.83

284

6.52

-11.65

Jan

17.72

-12.45

6.87

3.46

2.70

0.75

4.08

274

3.49

-8.64

*compared to same period in previous year

44

asianglass AG 16-6

www.asianglass.com

ANALYSIS: Freight

Deliverance float glass freight focus

Graduate engineer (Technical University) Albert Balke, Faymonville Distribution AG, Weiswampach / Luxembourg discusses some of the latest innovations in freighting float glass.

S

ince 1975 it is possible to transport float glass with Inloaders. Meanwhile this way of transportation became standard in Europe and other continents.

In the last three years there have been major developments to improve the efficiency of float glass transportation by Inloaders.

By optimization of the truck and trailer technology it was possible to increase the capacity of those trailers from 9 packs load to 10 packs load.

This is an important difference of 2800 kg payload!

Profound research concerning the stability of chassis-frames and the capacity of the load securing systems had to be conducted and the theoretical results were then validated in corresponding tests.

In addition to this the safety of glass transportation by Inloaders was improved significantly.

Inloaders

An Inloader is a special semi-trailer for the transportation of float glass.

Since 1975 it is possible to transport float glass with Inloaders. Meanwhile this way of transportation became standard in Europe and other continents, because the transportation of float glass by Inloader trailers is quick and safe.

In the last three years there have been major developments to improve the efficiency of float glass transportation by Inloaders. Also some more optimizations are expected for the future.

Dead Weight and Payload

Figure 2: Inloader picking up a stillage with glass

46

asianglass AG 16-6

In the float glass industry the load is characterized by the number of packs. Each pack has a weight of about 2800 kg.

This depends on the capacity of the side loading grab at the customers side.

By optimization of the truck and trailer technology it became possible to increase the capacity of those trailers from 8 packs load to 9 packs load. This is an important difference of 2800 kg payload!

In countries with a gross vehicle weight of 44000 kg the load of the trailer could be increased from 9 packs to 10 packs.

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ANALYSIS: Freight

Figure 1: Inloader picking up a stillage with glass .

essential elements.

In former times the trailers had been equipped with steel-rims and the standard-tyre generation 385/65 R 22.5. The first step was to change to aluminium rims and to the lighter tyre dimension 385/55 R 22.5.

Also the spare-wheel was abolished as well as some aerodynamic elements.

The body of the trailer was shortened in the front.

Normally Inloaders can be sunk down parallely by a front swing, the so called front rocker. However, by the removal of the front rocker the weight of superlight trailers was reduced by 150 kg. Consequently, movements in the front area of the trailer when loading or unloading must be taken then by a longer course of the suspension of the truck.

But pay attention to the fact that such a superlight trailer needs excellent conditions for its work, for example a smooth ground at the loading and unloading place.

Load Distribution Figure 3: Focussing on essential elements

This means 12,5 % more payload in countries with a gross vehicle weight of 40000 kg and 11,1 % more payload in countries with a higher gross vehicle weight.

The company Faymonville conducted in-depth research concerning the load distribution and the stability of the chassis-frame.

Besides this so-called secondary conditions were defined. For example it was determined to avoid any risk for the new constructed chassis frame. Also the wellproven axle suspension should remain in its classic form.

Firstly, significant weight advantages were generated by focussing on the

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Faymonville did a lot of research to optimize the load distribution. To get an excellent result the wheel-base of the Faymonville FloatMAX was enlarged from 7430 mm to 7600 mm although the aim was to become lighter.

Not only was the load distribution between the front of the trailer (fifth wheel load) and the rear (axle load) considered, but also the load distribution between the left and the right side. This is quite important for the transportation of L-stillages where the center of gravity lies outside of the centerline of the trailer.

Faymonville developed their own simulation tool “DistriMAX� to examine the load distribution very carefully, and various tests and simulations were conducted with quite interesting results. With DistriMAX it is possible to exactly calculate the wheel-loads.

AG 16-6 asianglass

47

ANALYSIS: Freight

Figure 5 Simulation tool “DistriMAX”

Figure 4: Validation of wheel loads

Improvements

Figure 6: Result of a DistriMAX simulation

The results showed, that on some occasions the load distribution from one side to the other can be critical with certain types of L-stillages and combinations of load. This does not depend on the trailer, but mostly on the load, e.g. stillage and glass.

For the optimization of the chassis-frame a detailed FEM analysis was conducted in cooperation with a specialist for those examinations. It demonstrated, that the new chassis-frame is very stable, but at the same time extremely light by use of high tensile steels. This material provides an optimal balance between low dead-weight and high stability!

To reduce the dead-weight of the trailer, it was also necessary to reduce the weight of the fixing-system.

The fixing-system secures the glass against lateral movements.

For this Faymonville developed a quite new generation of hydraulic fixing-system.

To guarantee the performance of the new fixing-system some tests were done in cooperation with the TÜV Rheinland to validate that the system is fulfilling the requirements of the norm VDI 2700 for load securing systems.

In a bench test a load of 10 packs of glass on an L-stillage was simulated and then subjected to a sharp turn with a lateral acceleration of 0,5 g.

Another project is the transformation of existing elder trailers for bimodale use. Those trailers, which are in good condition, can save a lot of CO2 in their second life when they are transported by railway and no longer rolling on the highway.

The future

Faymonville will continue with their aims to reduce the CO2 balance of Inloader trailers.

For this the cx-value and therefore the air resistance have to be improved.

The cx-value is depending on the form of the trailer and also of the form of the truck-trailer unit.

FL = cx * A * p/2 * v2 FL = air resistance

A= front surface of the truck-trailer unit

cx = cx-value p = density of air

v = speed

Figure 7: Detailed FEM analysis of the chassis-frame.

48

asianglass AG 16-6

Besides this the wheel resistance needs to be reduced, which is depending on the weight of a vehicle and which is described by several components.

FW = FR + FB + FS + …. FW = wheel resistance

FR = rolling resistance

FB = friction in the wheel bearings

FS = resistance by slip angle

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ANALYSIS: Freight

The described measures To validate these have not only made it i m p r o v e m e n t s possible to make the Faymonville developed Faymonville FloatMAX a simple simulationlonger and stronger, but tool to calculate the also significantly lighter. fuel consumption of a In the future some truck-trailer unit and to more detail improvements examine the impact of are expected to reduce the improvements. furthermore the energy An innovation in the consumption. shape of the Inloader Last, but not least: As trailer’s front part it is working quickly and will improve the cxsafely, the Inloader is and value. Other technical Figure 8 Bench test in Figure 9 Reconstruction of existing elder trailers for bimodale use will also be in the future modifications will cooperation with the TĂœV the optimal trailer to furthermore reduce the Rheinland transport float glass. wheel resistance.

By these modifications Faymonville expects to reduce the average fuel Author and Company Information consumption by 4,5 % (3 % by the improved cx-value and 1,5 % by the Albert Balke, born in 1954, studied technical science of motor vehicles at reduction of the wheel-resistance).

Technical University of Aachen from 1973 to 1979.In 1979 he started his Summary work in the business of trailers. One of his areas of expertise was among others the construction of Inloader trailers as well as the development of The last 3 years were dominated by the reduction of dead-weight of new concepts for the transportation of float glass by Inloaders.

Inloader-trailers as well as of suitable trucks.

In 2013 he became product manager for Inloaders (ILO trailers) in the So it is now possible to load 9 packs of glass instead of 8 packs or even 10 packs instead of 9 packs. company Faymonville Distribution AG in Luxembourg.

www.asianglass.com

AG 16-6 asianglass

49

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ANALYSIS: Automotive Glass

Mobile air c the impact of glazing on vehicle consumption

Cédric Janssens, of Glass for Europe, discusses the role of glass in reducing CO2 emissions from vehicles, and how this might affect future demand. With Asia likely to follow suite, the potential for shifts in auto glass market there are clear…

O

n February 2014, the new EU regulation amending the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles was. It stresses the need to amend the currently used “New European Driving Cycle” to ensure its representativeness regarding real driving conditions and to avoid the underestimation of real CO2 emissions and fuel consumption, and calls for a new, more realistic and reliable test procedure to be agreed as soon as feasible.

The new procedure should include a test procedure for taking into account the additional fuel consumption and CO2 emissions resulting from the use of air conditioning in vehicles (MAC). Since high performance glazing technologies, in particular solar control glazing, contribute to reducing the need to use air conditionings or their loads (i.e. solar control glazing reduces vehicle’s cabin temperature by decreasing by over 25% heat penetration in vehicles exposed to solar radiation), they offer an effective way to decrease CO2 emissions from MAC systems and from vehicles.

Introduction and objectives

The potential of energy saving in automotive through lighter automotive components is well known by the general audience. The different types of advanced glazing are lighter in weight, thus reducing the weight of the vehicle as a whole and generating further fuel savings. The glass industry has an impressive track record in reducing the weight of its glazing solutions.

By contrast, its capacity in reducing thermal load remains more confidential in the general public, despite its important impact on the use of the mobile air conditioning and its related fuel consumption and CO2 emissions. Today’s increased use of glass in cars means that, without

52

asianglass AG 16-6

the right technologies, more solar energy will penetrate the interior of the car, causing high temperature. Combating this solely by way of airconditioning alone would be an environmentally unfriendly approach, leading to higher fuel consumption and CO2 emissions. High-performance glazing technologies, in particular solar control glazing, the industry has developed in the recent years, can contribute to reducing the need to use air-conditioning or its load and subsequently offer an effective way to decrease CO2 emissions generated from MAC systems.

As part of the EU strategy to reduce CO2 emissions from light-duty vehicles, the European Commission has launched an initiative to decrease emissions generated by mobile air-conditioning systems (MAC). Through increased fuel consumption, MAC systems used in vehicles are identified as a significant source of greenhouse gas (GHG) emissions. The Mobile Air Conditioning Initiative could serve to promote energy-saving solutions such as solar control glass in vehicles.

The paper presents the contribution of solar control glazing to reduce CO2 emissions from light-duty vehicles and the mobile-air-conditioning initiative work initiated by the European Commission. It will discuss how glazing was taken into consideration in the evaluation, and reflect on the next steps towards the inclusion of a MAC testing procedure in the vehicle’s official fuel consumption data. It will try to respond to two fundamental questions: when is the MAC test procedure going to be integrated in the overall test procedure and will it support the uptake of high performance glazing technologies, and in particular solar control glazing?

The role of glazing: 1. Reducing air-conditioning need

onsiderable amount of solar heat penetrates the interior of vehicles when

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ANALYSIS: Automotive Glass

onditioning

a car is exposed to solar radiation. For instance, without solar control glazing technology, solar radiation generates a greenhouse effect heating up a vehicle’s interiors to temperatures above 60°C when the outside temperature is 27°C (Farrington R. and Rugh J., (2005)).

A common solution to reduce internal heat and to provide comfort to occupants has been to use air-conditioning, which results in an increase in fuel consumption and more CO2 emissions. The individual fuel use for vehicle air conditioning depends on a variety of factors such as glazing surface, outside temperature, exposure to solar radiation, efficiency of the

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MAC unit, etc. and can therefore vary a lot. Studies nevertheless found that fuel use for air-conditioning is between 5 and 15% of the annual fuel use for a standard car (Farrington R. and Rugh J., (2005)). Another study carried by the German Automobile Club ADAC demonstrates that for some popular European vehicles, air-conditioning use when temperatures are above 22°C can generate up to 20% additional fuel consumption (TaxisReischl B. & Behr Fa. (1997)).

Real efficiency in MAC comes from a multitude of factors: technological choices within the units but also many other aspects such as glazing. It

AG 16-6 asianglass

53

ANALYSIS: Automotive Glass

is therefore critical that highly effective solar control glazing should be employed to reduce heat load on vehicles.

2. The role of solar glazing in reducing CO2 emissions from vehicles Solar control glazing is a range of advanced glass products that provide not only good visibility and durability but also attenuate solar heat gain.

Glazing with advanced solar control properties substantially reduces heat build-up inside vehicles (Farrington R. and Rugh J., (2005)) and therefore either reduces the need to air-condition the vehicle or helps considerably lower the load on the unit.

Studies have shown that reducing a standard vehicle’s thermal load by 5% reduces energy consumption of the MAC unit by 10%. Considering that solar control glass can contribute to reducing inside cabin temperatures by more than 10%, it has the potential to improve overall fuel consumption efficiency by 2% and up to 4% in some cases (Taxis-Reischl B. & Behr Fa. (1997)). Bearing in mind that the number of air conditioned passengers’ cars is forecast to increase until 2050 by 75% (European Union (2011b)) and the overall CO2 emissions generated by road transport, its energysaving potential cannot be ignored.

glazing based on the ‘total transmitted solar energy’ through the glazing, the so called ‘TTS scale’ (figure 1). Glazing applies as a correction factor by taking into consideration the glazing effects on the fuel consumption based on the glazing data for each model (glazing technology, surface area, mounting angle, and inclination angle). In other words, the new procedure reflects the glazing performance on a technology-neutral way, but for each specific vehicle (exact input data).

Due to delays in the development of the test procedure, the MAC test was not integrated in the new WLTP test procedure under transposition in the EU. However, the procedure is already considered operational and a pilot phase (2015-2018) should start end of 2015.

European Union test procedure

The current test procedure for assessing the fuel consumption and CO2 emissions in Europe, the New European Driving Cycle (NEDC), was originally designed in 1970. It has been highly criticised for not reflecting real driving conditions and driving behaviour of a vehicle in actual traffic conditions, thus providing test figures that cannot be met in practice. In the case of MAC, the vehicle performance and in particular its glazing is not taken into consideration since the ancillary equipment, including MAC, is switched off.

EU legislation acknowledges that the NEDC test procedure is outdated and that certain innovative technologies cannot demonstrate their CO2-reducing effects under the type approval test. Therefore, an interim procedure, Eco-innovation (European Union (2011a)), can take into consideration their emission savings. However, high-performance glazing technologies are excluded under the current criteria.

The European Union has been actively involved in the development at the United Nations Economic Commission for Europe (UNECE) of a new Worldwide harmonized Light Vehicle Test Procedure (WLTP) aiming at progressively replacing the NEDC. The current test procedure NEDC and the newly developed WLTP will take place in parallel during this transition period (2017-2020) for the new types and all new vehicles until 2020.

Although the new procedure does not take into consideration the MAC performance in the declared values, a test procedure on MAC has been developed by the European Commission to be included at a later stage in the overall CO2 declaration under the MAC Initiative.

MAC Initiative

Originally, the development of the new test procedure at UNECE was divided in three phases. The first phase (2009-2014) was to focus the work on the development of the test cycle and the test procedures, and to develop test procedures for Off-Cycle Emission (OCE) and Mobile Air Conditioning (MAC).

The European Commission initiated the work on mobile air-conditioning looking at establishing a clear procedure to quantify fuel efficiency of mobile air-conditioning systems and to oblige car manufacturers to publish the fuel consumption of MAC equipments. A consultant (TNO) was contracted to develop in cooperation with the European Commission services and relevant stakeholders a specific test procedure via a pilot program (2011-2015).

The MAC procedure developed take into consideration the quality of

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Conclusions

The choice of glazing technology in a vehicle has an important influence on the demand for cooling and the vehicle’s overall fuel consumption and CO2 emissions. Although solar control technologies are readily available to automotive manufacturers, most new cars are not yet equipped with these glass products to the detriment of passenger comfort and reduced CO2 emissions.

The main reason for this is that today, air-conditioning use and related fuel consumption and CO2 output, are not taken into account in vehicle’s official fuel consumption data. There is consequently no strong incentive for manufacturers to equip vehicles with solar control glass.

Through the European Commission MAC initiative, market mechanisms can be activated. The development of a MAC test procedure taking into consideration the glazing data for each vehicle is an important step forward towards the promotion of high-performance glazing technologies and in particular solar control glazing. Since the test procedure is operational, it is the policy makers’ responsibility to implement it and put in place targets, so that automotive manufacturers are incentivised to equip their vehicles with these energy-efficient glazing solutions and further green technology development are provided impetus for.

However, the European Commission is still considering further delaying the implementation of the test procedure with a three years pilot project.

This test procedure should be concluded by the MAC test being added as a type approval test (making data available to consumers) and data not be included in the global CO2 value of the vehicle before 2020. The question is clearly political. The CO2 emissions reduction targets set in the EU legislation (from 130 grams CO2 per km by 2015 to 95g/km by 2020) (European Union (2009)) clearly call for an important emission reduction by 2020. Additionally, the actual implementation of the new test cycle (WLTP), reflecting more realistic driving conditions, will make these objectives even more challenging to achieve. Therefore, highperformance glazing technologies with a demonstrated track record in reducing emissions will have to be promoted by a favourable legislation.

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ANALYSIS: Solar glass

Small, but perf solar glass supply in ASEAN

Yogender Malik discusses how the development of solar glass supply ASEAN is attempting to keep pace with rising demand.

T

he solar energy application for flat glass is relatively small in volume compared to the markets of flat glass for architectural and for automotive purposes. In fact, this share has decreased over the recent years. A few years ago, the solar-energy glass market was on the rise and was expected to grow steadily to represent over 10% of flat glass volume by 2015. At that time, significant investments were made in fullydedicated patterned and float glass installations to produce glass for solar energy applications.

These expectations unfortunately did not materialise and the market experienced slowdown by a significant degree. First of all, the growth in solar energy equipments slowed down due to the combined effects of the economic crisis and comparatively slower growth of solar industry in ASEAN countries.

Additionally, the ASEAN markets for solar energy (both modules and glass) have been completely taken over by imports from China. Chinese solar panel and solar glass manufacturers have been able to sell their products at much lower prices than their ASEAN counterparts, if not at dumped prices. As a consequence of these market conditions, a number of ASEAN solar glass producers are going through tough times. A few plants have been mothballed, while at least three upcoming investments in solar industry have been cancelled.

During 2010-2015, global cumulative PV installed capacity registered a compound annual growth rate (CAGR) of 41.6%, which brought rapid growth of PV glass consumption. In 2015, global PV glass consumption attained 580 million m2, up 44.4% over the previous year. The CAGR is expected to stay above 20% in the next five years. China is the world’s largest PV glass producer and accounts for roughly 75% of total capacity. In 2015, China produced 310 million m2 of PV glass, up 14.1% from 2014. The output is expected to reach 350 million m2 in 2016 and exceed 500 million m2 in 2020.

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Currently ASEAN region accounts for about 20 million square meters of solar glass. The installed capacity and actual production are expected to see a steep hike and expected to reach 50 million square meters as soon as two undergoing projects become online. With the projected growth in photovoltaics, the demand for glass for the solar industry in ASEAN region will far exceed the current supply. With the growing demand new float-glass plants will have to be built to meet these needs over the next years. Such expansions will provide an opportunity for the solar industry to obtain products better suited to their needs, such as low-iron glass and borosilicate glass at the lowest possible price.

Industry issues

While polysilicon wafers are the single biggest component of solar PV (photovoltaic) modules, solar glass plays an important role too. Solar glass is different from normal glass because PVs require bright and clear glass with less iron content.

Glass is used in crystalline solar modules to protect layers from external elements. Glass amounts to over 60% of the weight of crystalline PV cells and over 80% of thin-film cells. In addition to this, glass mirrors are used in concentrated solar power. Despite a variety of applications, the solar glass market contributed less than 4% of the entire global flat glass market.

Unlike other flat glass markets like architectural and automotive glass, the market for solar energy is truly worldwide. Companies assembling solar modules tend to get glass from their local markets. However these modules can travel easily across the globe before reaching the installer, in contrast to the building and automotive glass sectors where delivery distances are shorter due to travel costs and on-time delivery requests.

This very feature of solar glass industry has marred the development of a healthy solar glass manufacturing industry in the region as Chinese panel and

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ANALYSIS: Solar glass

fectly formed ASEAN PRICES FOR GLASS USED IN SOLAR PV HAVE FALLEN BY FALLEN BY AT LEAST 30 % IN LAST TWO YEARS solar cell producers have cornered a huge market in the region. For the panels made in China, the solar glass requirement is met through their own producers.

Recent investments by solar cell and panel producers in the region has opened some avenues for solar glass producers in the region but since most of the solar panel production plants are in the construction phase it will be take at least two years for solar glass producers in the region to supply to these projects.

ASEAN: fertile futures?

ASEAN countries have a strong potential to become one of the largest destination of solar glass demand as the region has world’s highest annual sunshine allocation on the world’s solar radiation map. This is an advantage for the region in its efforts to develop a solar power industry, in the context of increasing demand for electricity and the potential risks of traditional electricity production sources.

To encourage investment in renewable energy projects, all the countries in the region have adopted different policies on incentives for solar power projects, especially in terms of investment capital, tax and land use rights. These initiatives are expected to give a much needed impetus to region’s solar industry and consequently demand of solar glass.

However, due to the high technological content of solar glass, producers for solar industry will have to invest in state of the art technology, which is very capital intensive. This coupled with fluctuating demand from solar industry and over-supply from Chinese producers has made things very difficult for ASEAN solar component and glass producers in last two years.

Solar focus

After lagging behind in the solar power race in comparison to most of the countries in the continent, ASEAN countries have started taking solar power seriously in last few years. During a recent meeting of ASEAN energy ministers

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endorsed the 2016 ASEAN Plan of Action for Energy Cooperation 2015-2016 and agreed to reach a target of 23 percent renewable energy by 2025.

The announcement is very significant given that according to a report from the International Energy Agency (IEA) the region has seen a 50 percent increase in energy demand between 2000 and 2013. In fact according to an Asia Development Bank (ADB) report Asia is expected to become the largest energy consuming region in the world well before 2050.

Countries across the region have taken different approaches to solve these issues, with some ASEAN members encouraging investment in renewable energies as a way to reduce fuel imports, and others seen it as way to bring electricity to millions of people in the region who still lack it.

Cell migration

Rising costs and steep anti-dumping duties in the United States and Europe, coupled with a desire to expand overseas, are increasingly driving major Chinese solar panel makers’ new investments away from the domestic market to neighboring ASEAN countries, where supportive government policies, growing demand and a host of other factors combine to offer high-growth opportunities and low-duty export potential.

This migration of component producers is expected to result in sizable demand of glass in the ASEAN countries from these producers. Since, some of the large scale projects from component producers are in various stages of implementation, it will be another two years for the glass demand to gather stream from these producers.

One of the most prominent names in solar panel industry, Yingli Solar has decided to set up a manufacturing base in ASEAN region. The Baodingbased company has not reported profits since 2011 as overcapacity and the attendant excessive production in Chinese market has caused prices of solar products to plunge.

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ANALYSIS: Solar glass

To cope, survive and expand, Yingli has decided to set up a 40:60 joint venture to make multi-crystalline photovoltaic panels in Thailand, by partnering with a local player, Demeter Corp. Operations will start in the month of December, this year. The panels will be sold under the Yingli Solar brand name.

According to Miao Liansheng, of Yingli Solar, “ Production of solar panels in Thailand will enable the company to operate more competitively even in the emerging markets of Southeast Asia. “We hope to expand the new factory’s production capacity across the PV value chain in the future.”

Yingli, however, is not the first Chinese solar products company to venture into Thailand. The trend started last year when Yingli’s competitors such as Trina Solar Ltd and JA Solar Holdings Co announced ambitious expansion plans.

Trina Solar, a photovoltaic modules maker based in Changzhou, Jiangsu province, has set up regional headquarters in Singapore as demand for solar panels has grown rapidly in Southeast Asia. In May 2015, the company invested about $160 million to build its factory in Thailand, aiming to boost its solar panel supplies to the global market. This year, it will start construction of the factory that will have a capacity to make solar cells that can produce 700 MW of power annually and solar panels that can generate 500 MW of electricity annually.

Motech Industries Inc , a Taiwanese solar panel producing company recognizes Malaysia’s pioneering work in the solar panel sector and has expressed an interest to enter into cooperation with a reliable Malaysian partner. Motech Industries , which is located in Tainan City had an annual revenue of US$756 million in 2015 and claims to be the largest merchant PV cells manufacturer in the world with a 3.3 Gigawatt (GW) production capacity, has maintained commercial ties with Malaysian producers of solar panels.

“Malaysia is a strong and emerging site for international companies dealing in solar panels, produces some of the components in solar panels, and also has a small production facility for solar cells.

“Malaysia imports solar cells from Taiwan and China which are the largest producers of solar cells. Demand for solar panels is much higher. Aluminium frames and glass are also needed, some of which can be sourced in Malaysia itself, “ according to Peng Heng Chang of Motech.

“Southeast Asian markets, particularly Indonesia and Malaysia, are promising for us. The regional demand is increasing. We have no collaboration yet with a Malaysian partner, but we are open to looking into any form of cooperation with a local (Malaysian) company,” he further says.

Thailand

Thailand has the largest solar generation capacity and consequently the largest market for solar glass among the ASEAN countries. Thailand added 722 MW of new solar PV capacity in 2015, an increase of over 50% from 470 MW of newly installed projects in 2014. At the end of 2015, the country’s cumulative solar power capacity stood at 2,021 MW. According to Thailand’s Energy Regulatory Commission (ERC), Thailand’s government has outlined an ambitious plan to develop 6 GW of solar PV capacity in the country by 2036 as part of a wider goal to source 30% of the nation’s energy from renewable by that date.

Thailand’s Installed PV capacity and Projections till 2035 2015

2020

2025

2030

2035

Residential (0-10 KW)

58

290

928

2,506

6,765

Commercial (10-1000 KW)

100

500

1,600

4,320

8,961

Utility Scale (> 1 MW )

2000

4,249

6,544

7,312

8,300

Total

2158

7059

9.072

14,138

24,026

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Vietnam NSG Vietnam Location- My Xuan, Baria Vung Tau Province (south of Ho Chi Minh City) Products- Glass for solar industry.

Markets- Vietnamese and other ASEAN markets.

Others- A subsidiary of Japanese Nippon Sheet Glass ( NSG), NSG Vietnam Glass Industries Limited (VGI) is among the leading supplier of solar glass to regional ASEAN countries besides the domestic market.

The company operates two lines in Vietnam, One of the flat glass line was mothballed by the company in May 2016 in order the balance the production in the region.

Flat Glass Group Location- Hai Phong Products- Glass for Solar Industry Markets- ASEAN Countries Others- Flat Glass Group Co., Ltd is a large sized enterprise with an integration of research and development, manufacturing, processing and sales of glass. The company was founded in June 1998. Head office of the group is located in Jiaxing City, Zhejiang, economic center of Yangtze River Delta.

The company also owns seven wholly-owned subsidiaries, Zhejiang Jiafu Glass Co., Ltd, Zhejiang Flat Glass Co., Ltd, Shanghai Flat Glass Co., Ltd, Jiaxing Flat New Energy Science & Technology Co., Ltd, Anhui Flat Solar Materials Co., Ltd, Anhui Flat Solar Glass Co., Ltd and Flat (Hong Kong) Co., Ltd.

Vietnam

Vietnam is currently the largest base of glass production for solar applications in the ASEAN region. Served by two solar glass lines ( One has stopped production since May 2016), the country exports a sizable quantity of solar grade glass to other regional markets after meeting its domestic requirements.

Japanese flat glass major, Nippon Sheet Glass ( NSG) is the major producer of solar grade glass in the country. In the face of slackening demand and flow of Chinese solar glass in Vietnam and the wider region, NSG has decided to adjust its production and optimize its inventory levels, to align its operations to the changing business environment. The Group currently operates two thin glass float lines: one in Japan and the other in Vietnam. Of these, the line in Vietnam, which was operated by a wholly-owned subsidiary, was mothballed from May 2016. According to NSG, the timing for restarting this line will be decided, assessing the market situation, inventory levels, and other relevant factors.

Alongside the thin float glass line, VGI also operates another float glass line for thin film solar products. The company was awarded a 2016 Outstanding Quality Award by leading solar component producer, First Solar for its continuous quality improvement efforts and commitment to First Solar’s Supplier Quality Continuous Improvement (SQCI) process. First Solar is a global provider of comprehensive photovoltaic (PV) solar systems that use advanced module and system technology.

The NSG Group, including VGI, supplies transparent conductive oxide (TCO) coated glass used in the global manufacture of First Solar’s advanced technology thin film solar modules. The glass products made by VGI are also supplied to the First Solar’s manufacturing facility in Kulim, Malaysia.

“The sharp drop in solar glass prices during the last few years was the result of massive oversupply in the market from China, which has led to price pressures for solar glass producers in the ASEAN region,” says a key executive from NSG Vietnam on the condition of anonymity.

He further adds “Chinese government subsidies on solar glass have hurt the ASEAN solar glass industry to a large extent. Countervailing duties by EU and America on solar glass has further put the ASEAN solar manufacturing at

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ANALYSIS: Solar glass

disadvantage as Chinese capacity going to European market has been directed to ASEAN region.”

Besides domestic solar panel and cell producers, a number of global solar producers too have set up their manufacturing operations in Vietnam in recent years, which has resulted in a spurt in solar glass demand in the country. Most notable of the producers, First Solar Inc. operates its four-line photovoltaic module manufacturing plant in the Dong Nam Industrial Park near Ho Chi Minh City, Vietnam. The $300 million manufacturing plant, which begun commercial production in the second half of 2012 can produce more than 250 MW of First Solar’s thin-film solar modules per year, with the flexibility for future expansion.

The factory also includes a recycling plant with a process that currently recovers up to 90% of a module’s semiconductor materials and glass, by weight, for use in new solar modules and glass products.

Chinese Flat Group Enters the Fray

Hong Kong-based Flat Group has won an investment license to build a USD-200million solar glass factory in Hai Phong, Vietnam. The group received the license from the Hai Phong Industrial Zone Management Board to construct a plant on an area of 53.87 acres within the Dinh Vu Industrial Park. The factory is expected to become operational in late 2017.

Malaysia

Malaysia Xinyi Solar Glass Location- Jasin Melaka, Products- Glass for Solar Industry Markets- Malaysia and other ASEAN Countries Others- Xinyi Solar is one of the largest solar PV glass manufacturers in the world. The company owns two bases for solar PV glass production in Anhui Wuhu and Tianjin provinces in China . It has 3,900 tons of solar PV glass production lines in total. The major products include ultra-clear patterned glass (sheet glass and tempered glass), AR PV glass, back glass, ITO glass, etc. XINYI SOLAR plans to increase two production lines with 1000 Tons/day furnace in Wuhu base in the fourth quarter of 2016 and the first quarter of 2017 respectively.

Meanwhile, to cater to ASEAN market the company is constructing a new production line in Malaysia that will commence operations in early 2017. By the end of 2017, Xinyi Solar will have a total melting capacity of 6800 Tons/day.

Malaysia’s Installed PV capacity and Projections till 2035 2015

2020

2025

2030

2035

Residential ( 0-10 KW)

17

90

230

360

490

Commercial (10-1000 KW)

68

156

355

580

765

Utility Scale (> 1 MW )

290

560

960

1420

1,900

Total

375

806

1,545

2,360

3,155

Despite the small size of its domestic market a number of solar component producers have made Malaysia their home. Six factories in Kulim produce fivesixth production of the First Solar’s solar panels. Panasonic of Japan has a solar panel factory a mile down the road from First Solar’s plant. Sun Edison makes wafers 60 miles away in Chemor. Hanwha Q Cells and Sun Power have giant factories even farther south, while Solexel, a Silicon Valley start-up, is building an $810 million solar panel factory Though, currently all the solar glass demand is met via imports from China and Vietnam but soon the demand and supply equation of solar glass is expected to change as Chinese solar glass producer, Xinyi as at an advanced stage of setting up its manufacturing plant in the country.

Xinyi Solar- New PV glass factory in Malaysia Leading Chinese glass producer, which has a dedicated subsidiary for solar business is at an advanced stage of setting up a solar glass production plant in Malaysia as part of the Chinese government’s “One belt and one road” strategic plan.

Located at Jasin Melaka, Xinyi Solar acquired the site from government-backed development agency PKNM for MYR 33.3 million in early 2015. With a total built up area of 265,000 square meters, first phase of the factory would become online in second half of 2017. However, the whole project will be built in stages over several years with a total investment of about USD 100 million.

“We believe that the new ultra-clear photovoltaic glass production capacity of the group in Malaysia is a major strategic step for the group to diversify its production base and strengthen its overseas sales,” according to the company.

With the rest of the company’s production in China, the Malaysian base will ensures some of Xinyi’s glass does not get dragged into the scope of the US and European anti-dumping duties.

It will also receive trade benefits as a result of Malaysia’s membership of the Association of Southeast Asian Nations Free Trade Area. The agreement includes preferential trade treatment of 8,000 products, of which solar glass is one. As a result, the company expects to export a significant volume of the glass to fellow signatories including Thailand, Philippines and Singapore.

dampener for glass producers in the country to venture into glass production for solar industry. Almost all the demand of solar panels and cells are imported into the country.

However, the new government decree, signed in mid-July, has considerably changed the landscape for solar PV within the country, by setting a new process for allocating capacity quotas. The major policy change is the introduction of feed in tariffs for registered solar developers, who will be allocated projects on a firstcome, first-serve basis.

The government has put forth an ambitious target of developing at least 5 GW of solar projects under this scheme in the next 2-3 years. The first phase of the decree is to complete a 250 MWh quota, with different quotas existing in different regions. The rates of the FIT will be between US$ 0.145 to 0.25 per kWh, and will be secured under an extendable 20-year power purchase agreement. The rate of the FIT is dependent on the region in which the project will be developed, as each region has its own tariff and quota.

Another factor, which is expected to work in favour of solar industry in the country, is Indonesian government’s removal of oil subsidies in early 2015. The government was providing subsidies to domestic oil users, constituting a major drain on the national budget. However, the new administration removed fuel subsidies in early 2015, which has saved the government an estimated $20 billion in 2015.

Indonesia

Falling prices

Largest economy and most populous country of South East Asia, Indonesia has lagged behind other countries in the region in terms of solar power due to ample availability of fossil fuel reserves. As Southeast Asia’s largest energy consumer, Indonesia’s solar market is woefully underdeveloped, with only two utility-scale solar plants, with a combined capacity of 7 MW, in operation.

Slow or almost no development in solar industry in the country has been a big

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Average ASEAN prices for glass used in solar PV have fallen by fallen by at least 30 % in last two years, dropping to approximately $4.20 per square meter this year from a high of $ 5.60 in 2014. However, as more and more solar glass from China starts pouring in the region as countervailing duties (CVD) imposed by the EU on Chinese suppliers has put brakes on Chinese solar glass exports to European countries.

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SPECIAL REPORT

In focus

DRIVING AHEAD Digitisation helps Fuyao break barriers

How the largest Chinese automotive glass manufacturer, Fuyao, is accelerating its global growth with highly automated and networked systems. European CEO of the company, Norbert Geisinger, talks to AG...

Mr. Geisinger, the Fuyao Group is I must be clear that our market share in rapidly increasing the pace of its Europe is still very low, but we aim to global expansion. Can you list the reach 20 percent in the medium term. most important milestones over the As a Chinese company in high-tech past three years?

Germany, you will certainly attract Norbert Geisinger: That’s right: In 2013 attention … we opened the first factory for completing Geisinger: Yes, in the positive sense. automotive glass production outside Our German customers in particular China, in Kaluga in Russia, and then will very much welcome this step. And another in Dayton in the US in 2015. This for us it’s a very important strategic year we’ve acquired an 85,000-squareproject. meter site near Heilbronn.

What about digitalization?

Can you reveal any more details at Geisinger: In the new building we will this stage? implement everything that is currently Geisinger: Starting in October we’ll Norbert Geisinger, CEO of Fuyao Europe GmbH. feasible and practical in alignment with Image Source: Fuyao be building a new plant there for Industrie 4.0. the completion of vehicle What expectations do you Fuyao is the largest Chinese automotive glass manufacturer. windshields in a highly have?

Image Source: Fuyao automated process. It will Geisinger: A lot: Thanks to also perform overmolding of digitalization we will be able, side windows with TP/PVC for example, to trace our and encapsulation of glass products. Our production sunroofs with polyurethane processes will also be foam. If everything goes significantly optimized. according to plan, we’ll be Basically, in the future we’ll able to put the plant into be able to interconnect and operation in October 2017. Our control our process with the production and storage area appropriate tools. We’ll be will then total approximately able to access all essential 40,000 square meters. factory data from anywhere, How important is this major and planning reliability expansion of the German at Fuyao will increase location for Fuyao? significantly.

Geisinger: Germany is How can Siemens partner definitely the most important you along this path? market for Fuyao in Europe, Geisinger: In Siemens we see which is why we set up Fuyao a highly competent partner Europe in Heilbronn back that is extremely experienced in 2007. Right now we’re in virtually all areas. That’s utilizing a total area of about why Siemens will partner 15,000 square meters for the with us in the areas of factory manual completion of vehicle planning and networking. windshields; the planned The issue of plant-wide enlargement of the site is automation is of great Milestones and plans at the Fuyao Group. Image Source: Fuyao therefore substantial. However, importance to us.

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#GPD2017

ALL EYES ON GLASS.

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OCTOBER 31, 2016 First selection of speakers will be done during November 2016.

Second deadline for abstracts January 20, 2017.

Second selection of speakers February, 2017.

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Window on Non-flat glass industry turnover; Jan-August 2016 (m. RMB)

Non-flat glass industry profit Jan-August 2016 (m. RMB)

Non-flat glass industry exports Jan-August 2016 (m. RMB)

Daily glass and container glass output (tonnes)

Daily glass and container glass output growth rates

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Daily glassware output, Q1-Q3 2016 (tonnes)

Container glass output, Q1-Q3 2016 (tonnes)

Container glass output, Q1-Q3 2016 (tonnes)

Container glass output, Q1-Q3 2016 (tonnes)

Container glass output, Q1-Q3 2016 (tonnes)

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63

Refractory Zone

Specifying insulation systems Lance Caspersen, from Morgan Advanced Materials, examines the main factors for specifying castable refractory insulation systems Due to their inherent low heat conductivity and other benefits derived from structural strength and ease of placement, insulating castable refractory materials are key for this energy-saving process. However, accurate specification is an extremely challenging task for many local, national, and global manufacturers who supply a wide range of material technologies and products.

The installers’ requirements for easy–to-apply materials and the customers’ needs for higher performance products drive the world’s leading refractory manufacturers to continuously and significantly invest in the research and development of advanced industrial insulation materials.

The goal is to bring insulating castable products to the market. These castable products combine optimal insulation performance with other important attributes, like strength, ease of installation, and operator safety.

Insulating castable refractory systems that contain alternative, highperformance core monolithic ingredients, like crushed IFBs, are now an increasingly popular specification staple for complex high-temperature applications, and specifying these systems has become a real challenge.

That said, the application of coventional raw materials such as vermiculite, a hydrous phyllosilicate mineral, and perlite, an amorphous volcanic glass, remains prevalent in many sectors. Although crushed IFBs, which contain insulating castable mixes, outperform traditional material choices in terms of product performance and application precision, habitual specification behavior continues to prevent customers in certain industries from selecting better alternatives.

As with any modification in specification, education is key to allow decision-makers to choose the best suitable product for each individual application according to environmental factors, desired outcome and cost, and application considerations.

As advancements in materials technology are set to continue, and product variety is likely to increase even further, applying the best specification practice will become more and more challenging. Keeping this factor in mind, it is important for specifiers to obtain and uphold a thorough knowledge of the key products, their technical capabilities and application methods, and how each product can hinder or facilitate main drivers, including installation, energy efficiency, and lifetime cost.

Mixology

All insulating castable refractories look the same, containing a mixture of cement, aggregates and additives, like fillers and clay. When mixed with water, these castable refractories will form a slurry that is suitable for application via pouring, casting, plastering, ramming or gunning, and in some compositions, shot-creting and pumping.

It must be realized that all castable refractories can be different, and hence they should not be commoditized. By understanding the difference between each type of castable, contractors, specifiers and installers can select and install a product that suits their application, and as a result, deliver improved energy and output performance, increasing lifespan and associated cost efficiencies as a result.

The best way to enable an ongoing learning curve is by partnering with a knowledgeable and established manufacturer that can encourage best practice throughout the specification process and also help specifiers and procurement teams to make the correct purchasing decision on a site-by-site basis, according to customer needs.

The difference between working in close cooperation with a producer and looking for a commodity castable refractory solution is simple. A well-established

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and highly experienced manufacturer can offer refractory products to meet the requirements of even the most complicated insulation challenge, balancing properties such as strength, density, and thermal conductivity. This capability is especially useful when specifying for harsh environments or for environments where a specific method of application is required.

While raw materials in insulating castables can differ, there are three key ‘core’ aggregate raw materials available on the market that can be used to create a range of insulating castable refractory products. It is important to evaluate these key ingredients.

Perlite

Perlite, a completely natural siliceous volcanic mineral, is formed by the rapid cooling and solidification of volcanic ash, which traps crystalline water into its masses. It is widely used in construction and in agriculture for soil aeration. It is mined across the United States, China, Greece, and Italy.

When rapidly heated to 1,472°F and 1,742°F (800°C and 950°C), perlite expands up to 20 times its original size. It is essentially a mass of tiny glass bubbles, which give it the insulating properties for which it is known.

Vermiculite

A hydrous phyllosilicate mineral, vermiculite occurs naturally as an alteration product when certain types of rocks form next to each other. Exfoliation occurs and vermiculite expands up to 30 times its original size when heated to around 572°F. Large commercial vermiculite mines are located in South Africa, Russia, Brazil, and China, producing material for a wide range of industries. In certain mixes for insulation purposes, vermiculite and perlite can withstand temperatures of up to 2,000°F and 2,100°F (1,093°C and 1,149°C) respectively before excessive shrinkage occurs.

Crushed firebricks

Standard cast process crushed IFB is used as an alternative core raw material for making insulating castable refractories, and it also provides better heatresistance capabilities of up to 2,800°F (1,538°C). The crushed IFB, which is already fired to a high temperature during the brick manufacturing process, is a pre-shrunk aggregate that contracts slightly during high temperature use when mixed to make a castable refractory.

When compared to perlite’s 8 PCF (128 kg/m³), monolithic castable mixes have a density of 34 PCF (545 kg/m³) and an inherent structural strength capacity of an insulating fire brick. As monolithic castable mixes employ crushed IFB as the core material, they perform exceptionally well in high temperatures and can also be formulated specifically to provide improved strength and thermal insulation performance in harsh kiln and furnace environments.

While Insulating Fire Bricks are promoted by several global manufacturers, there are very few that crush special cast produced IFBs for use in monolithic castable refractories. This makes Morgan Advanced Materials a top innovator in the field of materials technology.

Key criteria

With a better understanding of the three core raw materials in insulating castables, the next question is: which base aggregate to select? There are several key criteria that would be considered best practice when specifying insulating castable refractories, including the cost and quality of the product, the

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Refractory Zone

environment in which the product is anticipated to perform, and the method and complexity of application.

If these three main elements are right, the product specified, assuming it has been properly installed, will be able to provide optimum kiln or furnace performance as well as improved energy efficiency over a longer lifespan. The following sections review the three variables in more detail.

Application consistency

Taking a commercial or industrial kiln or furnace out of operation is inconvenient and very expensive. Therefore, specifying an insulating castable refractory that is quick and efficient to apply and provides long reliable service is highly advantageous to the end user.

The selection of a product that facilitates a predictable and efficient application involves two major concerns: Ease of use generally by gunning or casting and product loss usually via rebound or material compaction.

Insulating castable products are seen as easy to install, consistent in production, and can be applied under various conditions. Cast process crushed IFB based castables have a uniform particle size and density, enabling tight control on water addition. This results in a smooth castable with good flow characteristics.

Cast process crushed IFB-based castables lend themselves to installation by pumping and by gunning since a more porous aggregate will tend to clog the hoses.

It is this application drawback which has seen many contractors and specifiers to move in favor of castable materials using raw material technologies such as crushed IFB in order to more accurately control material costs before application.

‘Rebound’ is another key consideration and is the name used during installation to explain the situation when gunned material falls off the ceiling or walls onto the floor. Waste caused by rebound is typically the aggregate, which is why leading manufacturers like Morgan have developed specific formulations to reduce rebound to as low as 10%, while delivering greater consistency of the installed product.

Finally, material compaction is when the gunned castable mixture compacts due to the force of application when being installed on the wall, requiring additional material to provide the desired thickness.

Despite their beneficial lightweight characteristics, perlite-based castable products tend to compact up to 20% when gunned, which can make what is at first sight a cost-effective material, a more expensive overall installation.

Conversely, IFB-based insulating castables suffer very little, if any, on the wall gunned compaction because the hard fired raw material does not easily break down during the application process.

The uniform and reliable manufacturing techniques used in producing crushed IFB insulating castable refractories provide the benefit of simplified and consistent application processes to installers.

Compared with other insulating castables that are normally grainy and less cohesive, monolithic refractories with a core of crushed IFB mix into a smooth, homogenous ‘ball in hand’ consistency. Thanks to the consistency of IFB mixes, more precise control can be achieved during application with less water/air adjustments and potential surging during the gunning process.

Quality vs Cost

The quality vs cost argument is a longstanding specification problem, particularly for large companies with an in-house procurement team tasked with identifying cost savings.

Addressing this issue according to best practice means engaging with both the technical and procuring teams to aid a process of understanding.

In simple terms, by encouraging an appreciation of the advantages that can be offered by a better quality product in the long term compared to a lesser quality material with a more attractive perceived initial cost, specifiers can direct other decision-makers in the purchasing chain to select a refractory that not only delivers better product reliability and performance, but also a more sustainable whole life cost.

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It can even be said that applications that only requires a low to moderate level of thermal insulation could reap the benefits of ‘over-specifying’ on quality to reduce the risk of costly kiln failure and enjoy better whole life costs.

One good example is purchasing a $1,100/metric ton castable material instead of a $1,000/metric ton alternative, which might potentially offer more reliable product service life in addition to better insulation, performance, and speed of installation benefits that are expected from a better quality product.

The total cost should be considered: the price of the material, the density on the wall, the installation production rate, the installed material performance and service life.

Project specifying

It is not uncommon for specifiers to have preferred manufacturers or suppliers for materials or building products who they use on a regular basis. However, this approach is not always conducive to best practice for some materials including insulating castable refractories.

Industrial and commercial kilns and furnaces can be subject to various different application-specific factors, and there may be several operational variables at play too, which will determine the specification requirement. The key here is to really understand the environment that is to be specified, so that a product that will offer adequate performance, insulation, and lifespan can be recommended.

Operating temperature is the simplest example of having to specify on a project-by-project basis. While all furnaces rely on intense heat, there can still be a considerable difference in temperature between one environment and another.

As not all monolithic refractories provide thermal resistance to the same level, a kiln or furnace which operates at 2,000°F, for instance, could be insulated with a vermiculite, perlite, or crushed IFB-based refractory. However, perlite and vermiculite mixes would not be considered in an alternative environment that reaches much higher temperatures.

Depending on the temperature requirements of each project, the formulation of the mix will differ, with more cement and a denser aggregate providing increased strength, and less cement but a better insulating aggregate being ideal for higher temperature operations.

This applies for several environments in the ceramic industry, including the manufacture of small ceramic spheres for LNG fracking, which needs a highstrength castable that has the ability to perform in extremely high temperatures.

An established manufacturing partner will be able to help in specifying the right mix for the project, offering guidance on best practice and how to accommodate the change in formation with appropriate application methods.

The presence of contaminants in the operator’s process, which will need a purer castable refractory, and the problem of ‘thermal cycling’, which describes the situation where a furnace or kiln is heated and cooled frequently during operation, are other significant considerations.

This constant change in temperature may lead to cracking in a lower strength castable, while an insulating castable mix formulated with a pre-shrunk core material, like IFB aggregate, would be ideal.

Changing habits

Many areas of the supply chain can be resistant to change, particularly in environments where furnace failure or planned downtime is highly expensive. It is this resistance and a focus on simple material price that is slowing the shift towards more efficient materials technologies in some industries, despite the obvious benefits.

The unfortunate truth when considering best practice is that the very nature of specification can lead to the development of habitual behaviors, which can lead to sub-optimal product choices over time if decision-makers do not keep up with market changes and technological advances.

However, it is important to remember that improved castable refractory materials offer better performance and insulation, leading to cost and energy savings over the product’s lifespan – so they should be adopted as early as possible.

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