Asian Glass - AG17-2 Edition by Bowhead Media Ltd

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Inside:

IGU markets and issues for India Iranian container glass markets Pakistan: an industry in focus Weather proofing glass solutions news, views, analysis and much, much more!

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Contents: AG 17-2 Regulars

Features

10 Welcome

36 IGU for India

China’s grab for Africa.

12 Headline News

Openings, closures and industry moves from across Asia.

22 Global View

Our eye on the international arena.

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

30 Batch Raw material news and views.

34 Comment & Analysis PET ban gives glass boost.

At present, the sub-continent contains some of the lowest per-capita consumptions of IGU anywhere on the Asian continent. However, as manufacturing abilities improve, and advanced construction drives greater demand, this could all be about to change. AG finds out…

44 Iranian container glass

Yogender Malik looks at how a newly thawed political situation means that the Iranian container glass market could be about to become a major player in the region.

54 Pakistan: an industry in focus

Yogender Malik looks into how the continued potential of the domestic market continues to remain untapped despite the best efforts of some of the country’s producers and processors.

62 Tornado proofing glass solutions

As Cyclone Debbie smashed into Australia in March, and weather patterns become increasingly extreme and unpredictable, there has never been a greater reminder about the importance of developing architectural glass solutions to withstand these pressures. Valerie L. Block, Robin C. Czyzewicz, David M. Rinehart of Kuraray America, Inc. discuss developments…

68 Pollution in China: a special report

44 36 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 8

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Anaylsis 70 In Focus

A couple of months ago, an interview with the Chinese auto-glass tycoon Cao Dewang sparked a heated discussion across China. AG looks at the fall-out…

74 Window

Analysis and insight into Brazil.

78 Refractory Zone

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

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Welcome

CONTACT DETAILS

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24-27 M AY he signing ceremony for the EPC project of 130t/d flat glass production line between Se e us at CTIEC and JMONIT that was held in Shanghai Inside: on March 27, 2017, was another example of IGU markets and issues for India Iranian container glass markets China’s determination to ensure that its Silk Pakistan: an ind ustry in focus Weather proofin g glass solution Road and Belt Road policies remain on course. s PLUS! news, views, ana lysis and much, muc h more! Mr. Sun Jian’an, executive vice president of CTIEC, on behalf of CTIEC, was authorized by Peng Shou, board chairman and president of CTIEC, to sign the project contract with Mr. Juan Mbela Obama, president of JMONIT from Equatorial Guinea. For Equatorial Guinea and its neighbouring countries, the project will effectively address issues on their current dependence on flat glass import, and will optimize its industrial structure as well, contributing to its national economic development. However, not everyone views the continued expansion as positively. In Sri Lanka, A highway built by China threads almost all the way from Colombo to the south coast. The thoroughfare has yet to reach Hambantota, whose main road hugs the Indian Ocean. But it’s here where Chinese ambitions to develop a maritime Silk Road have run up against Sri Lanka’s tangled politics and identity, stirring distrust and creating an unlikely symbol of Beijing’s global leverage. Indeed, violent protests broke out in January after the government announced a deal with China to develop the port and build a massive industrial zone. Officials agreed to lease 80% of Hambantota harbor to state-controlled China Merchants Port Holdings for 99 years. Officials also plan to set up a 15,000-acre zone for factories. “No negative force can stop the cooperation between China and Sri Lanka,” Chinese Ambassador Yi Xianliang said at the zone’s opening ceremony, “if everything goes well,” Yi said, China would invest $5 billion in three to five years and create 100,000 jobs. Yet details are murky and suspicions run deep. Environmentalists worry about elephant habitats; locals fear losing their homes to development. And the political party that once embraced Chinese money is now fighting the deal as too expansive for the former British colony. “It’s been 69 years since we got our freedom, we don’t want to be under any other country,” said D.V. Chanaka, a Parliament member for the district who helped organize the protests. “People here fear it will lead to Chinese colonization.” The problem is that Sri Lanka owes China, its largest lender and trading partner, more than $8 billion. Hambantota port is particularly significant because it lies along one of the world’s busiest trade routes, connecting Asia with Europe. This spot, about 100 miles southeast of Colombo, plays a key part in China’s “One Belt, One Road” initiative that seeks to revive ancient trade routes and spread influence. “The Indian Ocean is going to be one of the most strategically contested in the future, with a rising India and a rising China making inroads into Africa and the Middle East,” said Kadira Pethiyagoda, visiting fellow in Asia-Middle East relations at the Brookings Institution’s Doha Center. “Sri Lanka is right in the center of that.” For all China’s apparent largesse and investment, however, is there an undercurrent of mounting debt that will ultimately put a gun to the head of those nations that have opened their doors to this foreign money. May we live in interesting times indeed… IRAN GL

ASS

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HEADLINE NEWS ASIA Politicians urge Sarawak glass manufacture Malaysia Chief Minister Datuk Amar Abang Johari Tun Openg suggests that manufacturers look into the possibility of producing glass bottles and containers in Sarawak. He said this is because glass is more environmentfriendly than plastic, which is non-biodegradable. Sarawak, he said, has abundant raw materials that can be used to make glass. “We have a lot of silica sand so we can make glass out of it.

“You know plastic is causing problem to the environment and perhaps, is an area the corporate sector can explore the possibility of producing glass bottles or containers instead of plastics,” he said at the launch of Fraser and Neave (F&N) Beverages Manufacturing Sdn Bhd’s UHT line here yesterday. He said although glass can be broken, people can recycle it and use it in many forms. He suggested that companies currently manufacturing plastic

bottles and containers also think of glass. “You can set your glass manufacturing plant in Sarawak. I assure you that you are very fortunate we have silica sand that can be converted to glass. The technology of manufacturing glass is already there, and you can look to Japan, which is very good in producing glass,” he said. The Chief Minister pointed out that glass is a good option if the bottle and container manufacturers really want to

be environment-friendly in their business approaches because glass is made from naturally abundant materials – primarily sand – and it won’t degrade over time. Present at the ceremony were F&N Holdings Berhad chairman Tengku Syed Badarudin Jamalullail, Assistant Minister for Industrial Development (Investment and Promotion) Datuk Julaihi Narawi and F&N Holdings Berhad chief executive officer Lim Yew Hoe.

Local auto industry to provide boost to glass Vietnam The ministry has set the target to increase the local content of cars to 80 percent and turn car production into an important industry in 2025-2035. Director of the MoIT’s Heavy Industry Department Truong Thanh Hoai said Vietnam’s auto industry has a capacity of producing and assembling around 500,000 cars each year at present, meeting 70 percent of the domestic car demand. A supporting industry for this sector is taking shape, providing several kinds of car parts such as mirrors, glass, seats, electric wire, battery, tyres, and plastic details. At the same time, he admitted that the industry failed to meet the set targets. After 20 years, the local content of cars is just about 7 – 10 percent at present while the original targets were 40 percent by 2005 and 60 percent by 2010. Domestically made cars have lower quality and higher prices compared to imported ones, with production stopping at simple level focusing on welding, painting, assembling, and inspection.

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The MoIT partly attributed the failure to instable policies on taxation, fees and infrastructure for the sector, a lack of consensus among state management agencies, and a shortage of concrete action plans and manpower and financial resources for policy implementation. Moreover, many foreign carmakers do not want to expand operations in Vietnam since they already invested in big auto production projects in regional countries like Thailand and Indonesia. Buyers’ preference for imported cars with advanced functions and better design has also affected the stake of Vietnamese automobiles, according to the ministry. The MoIT said with a population of almost 100 million and growing per capita GDP and middle class, Vietnam has an expanding car market which posted an average growth rate of nearly 40 percent in the last two years. Many experts also believed in the potential of the domestic market, which no carmakers should miss. To realise the target for 2025-

2035, MoIT Deputy Minister Do Thang Hai said the local auto industry will strive to take part in the global production chains of existing manufacturers. He said assistance will be given to businesses with large production volume, and attention will be paid to attracting investment from firms which have yet to run any big production lines in ASEAN. The ministry will also encourage the purchase of made-in-Vietnam cars and take suitable measures to ensure fair competition between domestically-made and import automobiles. However, there is doubt about the MoIT’s ambition especially when Vietnam will have to cut the import tariff on completely built units (CBUs) from ASEAN to zero percent on January 1, 2018 in line with commitments in the ASEAN Free Trade Area (AFTA). Nguyen Tuan from the Thien Phuc An Co. Ltd pointed out that Vietnam’s auto industry failed to “grow up” despite many protection measures and incentives over the last 20 years. He said when the CBU import tax reduces to zero percent, domestically produced

cars will not be able to compete with imported autos and the inevitable trend will be increasing the import of CBUs. Big manufacturers like Toyota and Honda have been gradually reducing production activities in Vietnam and instead import cars like Fortuner and Civic to distribute in the domestic market. Other assembling joint ventures are also facing the same issue. Toru Kinoshita, President of Toyota Vietnam and Chairman of the Vietnam Automobile Manufacturers’ Association (VAMA), said when the tariff cut takes effect, some VAMA members may be unable to compete with imports and thus may cease to exist. Therefore, State management agencies should provide more support to the car sector, he said.

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Environmental policies drive industry upgrades China Four years ago, Liu Jun had a argument with his father about whether to expand production at the family's glass factory or to upgrade the existing production lines. The company, Huijing, started producing raw glass in 2003. By 2013 -- when Liu's father suggested the addition of a new line to boost production -it had five production lines for sheet glass. But Liu, the company's general manager in Shahe, a countylevel city in north China's Hebei Province, thought it was not a good idea. "My father believed the company could achieve greater success simply by adding more production lines," he said. "I felt it would lead nowhere as domestic glass industry was already struggling." Factories in Shahe, the "City of Glass," produce about 160 million weight cases of flat glass annually, 20 percent of all glass produced in China. The son won the argument. The company branched out and began to make glass products with its own materials, including energysaving windows and doors, and turned discarded foam glass into frames and boxes. The company exported more than 3 million U.S. dollars worth of products to Walmart last year, and it inked a deal worth 20 million dollars with Walmart at the beginning of this year. The success did not come easy. The company's transition efforts were seen by many other glass makers as "a waste of energy and resources." Those same companies rued not making the same decision when demand for glass plummeted in 2014. Partly due to the sluggish property market, China's architectural glass production capacity has been redundant since 2010, but high-tech glass

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products are in high demand. Some high-tech glass products are still imported, said Wu Zihong, deputy director of Glass Industry Operation Center of Shahe Economic Development Zone. Besides, Shahe must address environmental issues. Before mid2014, Xingtai ranked consecutively at the bottom of air quality rankings among 74 Chinese cities. For Shahe, reducing smog and the capacity of its heavily consuming and polluting glass makers seemed a matter of urgency. However, the problem was that although all of Shahe's glass producers' discharges were within the standard, there remained the possibility that their combined emissions would exceed environmental tolerance because of the high concentration of glass businesses in that area. Under those circumstances, the city made reducing pollution a precondition for all glass enterprises, pushing them to pursue an environmentallyfriendly transition. Zeng Shebin, director of Shahe's Environmental Protection Bureau, said all assembly lines in Shahe must be capable of desulphurization, denitrification and dust collection. China requires each glass maker to keep its emissions of sulfur dioxide below 400 milligrams per cubic meter and that of nitrogen oxide below 700 milligrams per cubic meter. In Shahe, the two standards are 250 and 500 milligrams per cubic meter, respectively, Zeng said. "What we are doing sends the message that we are serious," Zeng stressed. Commonly, glass furnaces are kept burning for six to eight years for continuous production. It takes about 70 million yuan (10 million U.S. dollars) to reignite an extinguished furnace, said Zhang Shengyun, chairman of

glass producer Shabo Group. "It is less costly to install expensive equipment for desulphurization, denitrification and dust collection." The environmentally-friendly measures have proved to address industrial overcapacity. From 2011 to 2015, Shahe phased out 57 glass businesses and 66 outdated production lines, reducing 48.6 million weight cases of glass production capacity, 163 percent of the province's target. Last year, Shahe got rid of all sheet glass production lines and 21.8 million weight cases of flat glass. Statistics provided by the Shahe government showed that local glass businesses have spent about 1.6 billion yuan on curbing pollution with all of their 52 operating production lines featuring environmentallyfriendly facilities. Local glass producers and experts agree that while strict environmental policies increase the cost of glass production in the short term, they help upgrade

techniques and extend industrial chains for a more value-added, less energy-consuming model. Liu's company was among the first to reap the benefits of the transition. In 2016, the company's frames were sold to U.S. retailers, including Walmart and Home Depot. "The frame business is going very well," Liu said. Shahe and Wuhan University of Technology jointly established a glass technology institute to develop new products. Meanwhile, a new public service platform is helping local glass manufacturers develop their own techniques. As a result, there are a growing number of glass makers achieving success in their transition. Statistics indicate Shahe now has over 600 further-processing glass businesses, which use over 64 million weight cases of raw glass a year for production of over 1,000 kinds of processed glass products.

HORN completes Arab Trading deal Algeria In February HORN Glass Industries AG welcomed Arab Trading House EST to their premises in PlĂśĂ&#x;berg, Bavaria in order to sign the contract for the supply of the engineering and equipment of a 70tpd Recuperative Cross Fired Furnace. The services of HORN Glass include the entire supervision for the furnace construction, installation and commissioning. Furthermore HORN will provide the equipment of the

recuperative cross fired furnace, the distributor and forehearth, such as refractories, steel structure, combustion system, electric measuring and control equipment, etc. Arab Trading House EST is a close business partner of HORN Glass Industries in Algeria, in this case Arab Trading House functions as the complete supplier of GGP for their new project near Oran.The furnace will produce 70 tons of container and pharmacy glass in amber and flint per day.

AG 17-2 asianglass

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CDL system called for to improve recycling New Zealand There have long been calls for regulations to control the disposal and reuse of glass by introducing Container Deposit Legislation (CDL). CDL has operated in parts of Europe, particularly Germany since the 1970s. Over the last 10 years, since the development of the Glass Packaging Forum (GPF) and its Government accredited Product Stewardship Scheme, brands using glass packaging, have been largely protected from restrictive and draconian environmental legislation such as CDL. Glass has now reached a new high recovery rate of 73% through voluntary programmes, equal to the European Union average where several countries are heavily influenced by mandatory regulations. However, this is still short of world best recycling rates and to protect New Zealand’s 100% pure reputation it is essential that we are comparable with the best and have a recycling rate over 80%. Progress to date has been achieved by a multifaceted approach to education, infrastructure, promotion and research. The GPF has promoted and funded recycling bins at events such as the Winery Tour and other festivals where wine is sold. Over 50% of our funding goes to Councils or their contractors to improve the quality and quantity of glass recycling through better collections and storage facilities. The GPF has funded education programmes in schools and research to develop alternative uses for glass which is not suitable for remanufacture into new glass containers and where justified, has assisted related commercial activities. However, in the current political environment and with an election later this year, the “Cash for Containers” lobby encouraged by support from 90% of local councils at the Local Government New Zealand 2016 Conference, are ramping up calls for CDL knowing that a change in government might result in regulation. Advocates for “Cash for Containers” say that CDL will reduce costs for councils, increase recycling and

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reduce litter. However, this is not supported by economic analysis. The Packaging Forum engaged one of New Zealand’s leading economists to assess the cost of introducing a Container Deposit System alongside our existing kerbside collections. The annual cost of introducing a 10 cents charge on beverage containers is $NZ 75 million which proponents naively expect the commercial sector to meet. The claimed benefits from CDL of an expected 7% increase to 80% in the recycling rate does not justify this cost, especially as opportunities exist to similarly improve the current rate with voluntary programmes without regulations. An often quoted reason for CDL is that it will reduce litter is also incorrect with packaging representing only 11% of litter. The glass packaged goods industry can only continue to operate free from legislation as long as it can demonstrate that its voluntary Product Stewardship Scheme is widely representative and providing results that are comparable with those countries with CDL programmes. The GPF was one of the first organisations to achieve accreditation of its voluntary scheme and is now preparing its application for a second seven year accreditation period. The Ministry for the Environment has signalled a need for more companies to join the programme to clearly demonstrate an increased industry mandate. There is a need to not only increase recycling but also increase membership. Membership costs are unique in that they are totally equitable being directly related to tonnages of glass sold into the New Zealad market place by each member company. The GPF appreciates the support of those leading Winegrowers that have participated in the Glass Packaging Forum since its formation. However, with increasing calls for CDL we ask other companies to seriously consider joining to help ensure that your industry is not encumbered with inefficient restrictive legislation.

TIAMA at the core of Asia Pacific Glass expansion Thailand

Back to 2013: Thailand, Bangkok, the glassmaker Asia Pacific Glass confirms its arrival on the very dynamic Thai hollow glass market with a project to create a new factory with a first 310 TPD furnace with 3 production lines dedicated to source Thailand’s leader of the energy drink Carabao. Amongst the European suppliers selected for this Greenfield, TIAMA performed the Cold End Inspection with its bestsellers MCAL4, MULTI4 and MX4. Since summer 2016, after almost 3 years of close collaboration with Tiama offering its glass quality control know-how to this young but ambitious player, not only are the machines performing excellent inspection, in line with TIAMA’s latest developments, but all production lines are running with consistent, repeatable and reliable quality control levels maintained thanks to stringent operational protocols enforced by APG staff themselves. TIAMA’s tailored inspection & service has played a key role in that APG’s Cold End area now vies with the most prestigious glass plants worldwide. The success of this new factory led to the decision to launch a second furnace installation for 2017. It was therefore logical for APG to call on Tiama’s expertise once again for this additional development. The company had been supportive and involved since the very beginning and a real truthful relationship was built between both actors. Today, with a new order of 21 machines, it is with no surprise that TIAMA has the role of preferred supplier in this state

of the art glass plant 100% equipped with TIAMA machines at the Cold-End. TIAMA also strengthened its presence in Thailand and more globally in South East Asia with a local Customer Support team, based in Bangkok with 5 after sales engineers fully dedicated to this market. The capacity of this team to ensure proximity and support corresponding to the local needs, explains the noteworthy presence and success of TIAMA in the region.

NEWS IN BRIEF German company Benteler Maschinebau has signed a contact to supply a new printing glass line for a leading automotive glass producer in India. The company couldn’t share the name of the company due to non-disclosure contract with the buyer. Speaking to Asian Glass in New Delhi, Sameer Mohite, Sales Manager of Benteler Maschinebau said, “ We will be installing this equipment in the current year.” Benteler Maschinebau is an internationally known provider of glass machinery. The company supplies fully automatic systems for cutting, break-out, edge grinding and drilling automotive glass and washing machines for curved glass and assembly and inspection lines for automotive glass.

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NSG to raise funds through placement Japan Nippon Sheet Glass intends to raise roughly 40 billion yen ($352 million) through a private share placement, as the company seeks to invest in cutting-edge products aimed at widening profit margins amid intense competition. The Japanese glassmaker will issue preferred shares without voting rights to a fund managed by Japan Industrial Solutions -- a joint venture of Japan's three megabanks and the governmentbanked Development Bank of Japan -- and another by UDS Mezzanine Fund, set up by Sumitomo Mitsui Banking Corp. and the DBJ. The two turnaround funds are to invest 20 billion yen each and send representatives to management. NSG is the world's secondlargest glassmaker, with a production network spanning 28 countries. Its share of the global flat-glass market is estimated at 7%, second to Asahi Glass' 8%. NSG's 2006 acquisition of Pilkington turned heads because of the relative sizes of the companies involved, with the British glassmaker reporting about twice the annual sales of its Japanese suitor. The 600 billion yen deal has weighed heavily on NSG's earnings, in the form of both amortization of the considerable goodwill left on the company's balance sheet and interest payments on loans used to finance the acquisition. In the fiscal year ended March 2016, the manufacturer suspended operation of a Vietnamese plant that produced thin glass for liquid crystal displays and exited the Chinese photovoltaic glass market in response to increased production by Chinese rivals. It booked a record net loss of 49.8 billion yen that year. The company saw

its shareholders' equity ratio drop to 7.3% at the end of September, underscoring an urgent need to shore up finances. NSG plans to use the proceeds from the capital increase to accelerate investment in growth fields. As a glassmaking specialist, the company has focused on developing highperformance products, such as automotive glass that blocks ultraviolet rays and lowdistortion windshields that let cameras used in autonomousdriving systems capture images more accurately. But the protracted earnings slump has left little wherewithal for new investment. NSG spends just under 10 billion yen on research and development annually -- about a quarter of Asahi Glass' outlays. The glass industry has been reshaped in recent years by the ascent of Chinese players, who reportedly now hold a combined 60% of the flat-glass market. NSG is more vulnerable to this heightened competition than are Japanese peers Asahi Glass and Central Glass, whose portfolios also include chemicals. Its focus on more technologically advanced products, particularly for the automotive industry, is intended to bolster profit margins. This shift in priorities may open the door to a domestic industry shakeout. Annual glass shipments in Japan came to about 360 billion yen in 2015, a roughly 40% drop from 1990 that owes partly to falling housing starts and auto sales. Glass factories are believed to be operating at around 60% capacity. Japan's economy ministry issued a report in 2015 encouraging the three big glassmakers to consolidate production facilities.

New furnace at Pragati India Gujarat based container glass producer, Pragati Glass is in the process of installing a new furnace at its Kosamba ( dist. Bharuch) based plant. The new furnace with a capacity of 130 TPD is expected to be operational during the second half of this year. The company’s current production plant in Gujarat has two furnaces of 80 tons and 90 tons, with a daily production capacity of 170 tons per day. Company’s manufacturing facilities also include IS machines of single gob and double gob, semi-automatic and 3/4th automatic machines, which can produce approximately 1 million bottles every day. Pragati caters primarily to the cosmetics and perfumes industry with small presence in foods & beverages industry. Almost 60% of the company’s sales are to the exports market while balance being towards the domestic market.

Firzobad continues to struggle India Glass industry and producers in Firozabad - a hub for manufacturing glass tableware, bangles and glass bottles - are struggling to regain the lost business as a result of domenetisation exercise carried out by Indian government in Nov- Dec 2016. The cluster has 40 glassware producing units, 16 tableware, 13 container glass and about 100 glass bangle producing units in small and mid scale. Glass producers in the cluster have seen a sharp decline in orders due to shortage of cash with the buyers. Gaurav Singhal, Managing Director, Uma Glass Works told Asian Glass, "Glass business in the town has suffered due to demonetization. Most of the

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domestic business is carried out on cash payments. Electronic or cheque payments are done only for big orders, which accounts for just 20 per cent of the domestic business. On a whole the business in the town is down by 40- 50 %." Uma Glass produces tableware glass, home décor glass, bath accessories, candle holders, utilities, lamps, table tops etc. Ananad Gupta, General Manager with Associated Glass, a tableware producer told Asian Glass, “We had to suffer a lot because of labour issues. A large number of workforce in the cluster is fleeting labour, they want to get paid in cash right after the shift is over. Sometimes, they want to be paid before the shift begins.”

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In addition to India, Pragati Glass also has a container glass manufacturing plant in Oman in the Middle East. The Oman plant has one furnace with a capacity of 135 tons per day. The Omanian facilities include three 6 section and three 8 section manufacturing lines with both single and double gob. All these machines are supported with the latest technology like automatic batch house, automatic inspection line and palletizing unit. Pragati Glass Gulf LLC was set up in April 2009, where Indian management has a 55% stake with 15% held by another Indian partner and balance being held by a local partner. It was set up to take advantage of the lower input cost, mainly gas, a primary input for manufacturing. The company is mainly into the food & beverages segment and also caters (30%) to the cosmetics and perfumes industry.

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■ ASEAN glass fibre expansions ■ Where next for Asian ■ Coatings and façades IGU? ■ SE Asian in the ●●●●

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Middle East packaging review: part SEE US AT: 1 GlassBuild America; Manufactur ASEAN Federation ers, Glasstech Asia

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Fenzi wins “excellent enterprise” award China Fenzi China Paints and Sealants Company Limited has been presented with the “Excellent Enterprise 2016” Award. The award celebrates eight companies for their excellence in sales, and workplace safety and quality. The local authorities of the Jiaxing district selected the Chinese branch of the Fenzi Group again for this award from among more than 1,000 companies working in various branches of industry. The award is a testament to the high growth potential of Fenzi China, which has been very active in the area for more

than 10 years, occupying and maintaining a prominent position in the extremely competitive Chinese market. Stefano Pozzi, General Manager of Fenzi China expressed his great satisfaction: «Over these years, the business culture of our group and the sales expertise of all the team have allowed us to secure an important share of the Asian market. In fact, the company’s year-end results in 2016 were extremely good. All the group’s business units posted an increase in sales, especially in the warm edge

sector, with Alu Pro and the Butylver and Thiover sealants. All our product ranges are always very popular among Chinese flat glass processors, who are looking for that mix of high performance and easy processing that Fenzi machinery guarantees». According to Stefano Pozzi, 2017 will be another year of growth for the group: «Our expectations for this year are very positive; and this is mainly because of the daily efforts of our closely-knit and motivated group, and our strong brand impact on customers

The award celebrates 8 companies for their excellence in sales, and workplace safety and quality. The local authorities of the Jiaxing district selected the Chinese branch of the Fenzi Group again for this award from among more than 1,000 companies working in various branches of industry. The award is a testament to the high growth potential of Fenzi China, which has been very active in the area for more than 10 years, occupying and maintaining a prominent position in the extremely competitive Chinese market.

San Miguel snaps up Portavin AGC lays foundation stone Australia The packaging unit of San Miguel Corporation (SMC) further expanded its presence in Australia with the acquisition of Portavin Holdings Proprietary Limited, the leading independent wine services supplier in the land down under. SMC said in a statement that its unit San Miguel Yamamura Packaging International Limited (SMYPIL) has bought 100% of shares in Portavin. Portavin is a privately owned company involved in the bottling of wine, trading, and distribution of packaging products. It has operations in 4 key regions in Australia – New South Wales, South Australia, Victoria, and Western Australia. "These acquisitions will enable our packaging business to further expand in Australia and New Zealand. Portavin and Endeavour Glass will complement our current packaging operations, Cospak and Vinocor," SMC president and chief operating officer Ramon Ang said, without divulging details of the acquisition. According to media reports, Australia's overall wine exports grew 7% to $2.2 billion in 2016. Momentum is expected to continue this year, driven by China's increasing thirst for premium wines. "Other than the Australasian region, we will continue to look

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Morocco for opportunities of growth for our packaging business in the Philippines and abroad," Ang added. With 27 years experience, Portavin is bottling more than 80 million bottles annually for over 800 wineries. Portavin said the acquisition is in line with the growing confidence of both companies in the Australian wine industry and related packaging businesses in both the domestic and overseas markets. SMC's packaging unit has been making acquisitions in Australia and New Zealand over the past few years. In 2016, the SMYPIL group acquired the assets of Endeavour Glass Packaging Limited (Endeavour Glass). Located in New Zealand, Endeavour Glass specializes in providing packaging solutions to the wine, beverage, and food industries. Other recent business acquisitions in the area include the purchase of the assets of Vinocor in 2015, a market leader in the supply of corks and closures for wine bottles in Australasia. This was after SMC acquired Cospak, one of the largest packaging firms in the region. SMYPIL is a joint venture between SMC and Japan's Nihon Yamamura Glass Company Limited.

The foundation stone for the new automotive glass production plant being built for AGC Automotive Induver Morocco was laid on Wednesday 15 March. The foundation stone for the new automotive glass production plant being built for AGC Automotive Induver Morocco was laid on Wednesday 15 March in the presence of the Moroccan minister of Industry and Commerce, Mr. Moulay Hafid Elalamy, together with many other personalities from the worlds of politics, industry and the media. The project for the new plant being built at Kenitra in the northern coastal region of the country is the result of a joint venture between AGC Automotive Europe and the Moroccan glass producer Induver. This initiative marks the AGC Group's first operations in Africa. AGC Automotive Induver Morocco will produce toughened glass for backlites and sidelites together with laminated glass for windscreens. The plant will have sufficient capacity to supply around 1,100,000 car sets per year and should be operational in 2019, employing around 600 people. The new plant is ideally situated to meet the demand for automotive glass in North Africa and the South of Europe. It will also benefit from a free trade zone set up to attract companies operating in the automotive industry and

so to develop a major industrial concentration in this sector. "Once the AGC culture of automotive excellence has been properly established here, our ambition is to see this plant managed 100% by a local team, in line with our policy in this area," declared Jean-Marc Meunier, General Manager of AGC Automotive Europe. Hakim Abdelmoumen, General Manager of Induver, for his part welcomed the prospect of producing the complete carset (windshields, backlites and sidelites) in large series for the first time in Morocco. "This wider offer will further raise the local content of vehicles built in Morocco and boost the added value created locally."

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Chinese target mirror plant Energy-harvesting clear glass Cambodia A China-based mirror manufacturing business that fabricates various glass and mirror products for use in the construction industry is keen to set up operations in the country. “This will be a first for Cambodia, as there are no other manufacturers using state-of-the art technology to create glass and mirror products to meet the specifications of the construction sector,” said Meng Saktheara, the spokesman at the Ministry of Mines and Energy. Mr. Saktheara identified the company as Grand Honor Industries Co. Ltd. and said its representatives had recently met ministry officials to discuss plans for a feasibility study before commencing operations. “The company’s representatives met with the ministry’s technical experts because they wanted to source sand, which is the main raw material for producing glass and mirror products,” he added. Mr. Saktheara said making the products in Cambodia would greatly reduce their cost and it will be a boon for the country’s bourgeoning construction sector.

Australia “Also, it will create jobs for Cambodians,” he said. Kim Heang, president of the Cambodian Valuers and Estate Agents Association, said the presence of companies like Grand Honor in the country would allow construction materials to be priced more competitively. “Right now the industry is importing most of its construction materials from overseas and this makes it expensive. Having a manufacturer base its operations in the country would make them cheaper,” said Mr. Heang. Cambodia imports building materials mostly from Thailand, Vietnam and China. According to Mr. Heang, luxury and highquality materials like custommade glass and mirror products are mostly imported from the European Union. Grand Honor, which also has a plant in Malaysia, uses stateof-the-art computer controlled equipment to create glass and mirror products which are shape-cut, beveled, edged, and grooved to meet specifications.

Soliver to close container plant Lebanon Soliver, manufacturer of glass containers, is expected to shut down its factory in Bchamoun by the end of April. Omar Kaddoura, General Manager of Soliver, said: “The reason behind the closure is because we are losing our market share.” He said that the investments required for upgrading machines is $30 million. The life cycle of glass industry machines is six years, and it is now time to upgrade them. “We preferred not to invest such amounts,” he said. The energy-intensive glass industry has high electricity costs. Soliver pays more than $3 million annually to generate its own electricity. According to Kaddoura, the same glass products are imported to the market

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from Egypt and the Gulf at lower prices. Soliver produces 140 tons of glass containers per day. It provides its products to 15 local manufacturers such as Interbrand, Pepsi, Kassatly Chtaura, among others. The company has 250 full time employees. Kaddoura said that they agreed with the Ministry of Labor and the employees on severance compensation to compensate them with one month salary for each year of service. Kaddoura said that the company will not be sold for the time being. “If the situation improves, we may decide to reopen the factory.” The Kaddoura family owns several factories in Africa. It opened its local factory in 1957.

New technology in Western Australia is making its mark on the solar market, becoming the world's first commercially viable clear, solar glass. Developed at the Electron Science Research Institute (ESRI) at Edith Cowan University, the glass contains special nanoparticles, with solar cells around its borders. Director of the ESRI Kamal Alameh described it as a game changer for the industry. The energy-harvesting glass has already been used to build a self-sufficient bus shelter in Melbourne, with the company also in talks to test the product at Singapore Changi Airport. The team is also planning an advanced energy efficient glasshouse, to be built in the Perth area. "This is a greenhouse that can pass the visible light needed for growth, or photosynthesis, while blocking unwanted radiations," Professor Alameh said. "And then convert them to electricity where we can use them for water filtration, irrigation, heating and cooling inside the greenhouse." The technology has been developed in collaboration with ClearVue technologies. While it is not the first, or only, solar glass product on the market, ClearVue founder and chairman

Victor Rosenberg said it was the first of its kind. "Nobody actually has got clear glass," he said, "they've got either lines or they've got dots, or looks like a chessboard with squares of solar panels on the glass. "We are today, I would say, the only commercial-size clear glass super building material producer." One sq metre of the glass can produce up to 30 watts of power. With glass being one of the oldest and most versatile building materials, Mr Rosenberg said the new technology was advanced. "It's been referred to by some major players as frontier technology. Mr Rosenberg said it was the development of the battery that had allowed the advancement in solar technology. "The power is collected, stored in the batteries and then you draw off the batteries," he said. The ultimate aim is to be completely off the grid, but Mr Rosenberg said it would take a combined effort of all emerging technology to make that happen. "We should combine with other renewable technologies together," he said. "No-one is strong enough to supply all the power, we should work with solar panels on the roof, plus on the windows, and other materials that are energy efficient.

Smart glass from Kinestral Taiwan Kinestral Technologies, a U.S.based partner of Japan's Asahi Glass, will invest $100 million to begin Taiwanese production of its glass that can change color through use of electrical currents. A subsidiary of Taiwan's Hon Hai Precision Industry will assist in setting up production and sales in China. Plant construction will begin as early as March in Miaoli County in northwestern Taiwan, and product sales are scheduled to kick off in early 2018. Kinestral will use funds procured from such investors as Asahi Glass. Kinestral's Halio-brand glass can change from transparent to colors such as dark gray using

electrical currents that pass through a special film inserted between glass panels. The color can be controlled using a device such as a smartphone. Since the glass shuts out heat, it also helps conserve energy. The Japanese glass maker is extensively involved in Kinestral's business, with a hand in areas such as sales and technology development. "The growth in the market for smart-tint glass was led by the U.S., but we also want to develop the European and Chinese markets," said an executive in the building and industrial division of Asahi Glass.

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Global View PGW auto glass plant re-sold Guardian to implement laminated glass UNITED STATES For the second time in less than a year, Pittsburgh Glass Works' automotive glass plant near Meadville is under new ownership. Vitro, S.A.B. de C.V., a North American glass producer based in Monterrey, Mexico has completed the purchase of the PGW automotive original equipment manufacturer glass business from LKQ Corp. The agreement, first announced in December 2016, is for $310 million, free of cash and debt. In early 2016 LKQ Corp. bought PGW for $635 million from private equity firm Kohlberg & Company LLC and PPG Industries Inc. Headquartered in Pittsburgh, PGW operates seven manufacturing plants, two satellite facilities and two float glass furnaces in the U.S., including its float glass plant in Crawford County's Greenwood Township. PGW also has one manufacturing plant in Poland and has joint ventures in Mexico and China. No changes are anticipated at the Meadville-area plant, which employs 306 workers, said Jennifer Eck, spokeswoman for PGW. "We will continue to look at capacity (to manufacture glass) and at joint capacity," Eck said. The glass made at the Greenwood Township facility is used by automakers and

HUNGARY other PGW plants to fabricate windshields and side and rear windows for vehicles. The acquisition, combined with the purchase of PPG's former flat glass business completed in October, expands Vitro's float glass manufacturing and fabrication facilities, according to Vitro officials. The deal solidifies the company's position as the leading glass manufacturer in North America, according to Vitro. The addition of PGW's original equipment business will enable the company to serve a greater number of customers in the automotive glass business and increase its global coverage, according to Adrian Sada Cueva, chief executive officer of Vitro. "The experience and state-ofthe-art technology PGW brings to our business will enhance our technical, research and development capabilities," Cueva said. Joe Stas, chief executive officer of PGW, said the transaction represents the beginning of an new era for PGW. "Vitro has a sterling reputation throughout the industry as a highly competent and capable glass manufacturer, based on more than a century of glass-making experience across the automotive, architectural and glass container industries," Stas said.

Vetropack sees profit rise UKRAINE PJSC Vetropack Hostomel Glass Factory (Kyiv region), the largest Ukrainian producer of glass containers, last year saw a net profit of UAH 62.39 million against a net loss of UAH 80.34 million a year earlier. According to a company report in the information disclosure system of the National Commission on Securities and the Stock Market, its assets last year increased by 15.3%, to UAH 1.6 billion. Undistributed profit increased by 49.8%, to UAH 189.1 million. Total debtor indebtedness over the year rose by 32.6%, to UAH 396.7 million. In 2016 its current obligations

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increased by 1.3 times, to UAH 237.3 million. The plant shareholders intend to approve its financial results for 2016 at a general meeting on April 12 this year. The number of personnel at the company last year decreased by four people, to 637 employees. Since 2006 Vetropack Hostomel Glass Plant has been part of the Vetropack European group of companies, a major glass container manufacturer with factories in Switzerland, Italy, the Czech Republic, Croatia, and Slovakia. It produces containers for wine, champagne, vodka and cognac, beer, mineral water, etc.

New line will meet rising demand for laminated glass products. Line will also produce specialty products such as acoustic, thick and coloured laminated glass. To support the increasing demand for laminated glass in Europe, Guardian Glass is adding a new laminated glass production line at its Oroshaza, Hungary plant. The new line will produce both standard and coated laminated glass, as well as specialty products such as acoustic, coloured and thick laminated glass. The rising demand for laminated glass is being driven by three long-term trends: • Country-level regulations in Europe require the use of safety glass in an increasing number of fenestration and interior applications, for which laminated glass is the most effective solution. • The desire for building to have more natural light is driving the trend towards larger, energy-efficient windows, which requires the use of laminated glass for higher mechanical resistance and security. • A general rise in demand for noise reduction for both residential and commercial buildings has increased the use of acoustic laminated glass. “The Oroshaza plant already has a coated glass production line and so the opening of a laminated glass line will also enable us to offer an optimal product mix to our customers, for residential and commercial segments, including low emissivity, solar control and other specialty laminated coated glass products such as antireflective Guardian Clarity™,” said Guus Boekhoudt, Vice President Guardian Glass Europe, and Managing Director Guardian Europe. The new line is also a logical continuation of a change initiated at the plant by Guardian Glass in 2016, which saw a switch from standard float glass production to Guardian's higher light transmission alternative,

Guardian ExtraClear®, to meet the increased need for more natural daylight in buildings. Laminated glass production is expected to begin in Q1, 2018. As a result of these changes and in response to continuing market trends and further advances in mirror technology, Guardian Glass has decided to discontinue production of mirror glass at Oroshaza. The mirror line will cease production at the end of March 2017. However, Guardian Glass will keep serving customers in Europe with its UltraMirror™ lead- and copper-free mirror glass produced at its Dudelange plant in Luxembourg.

VSB sells recycling business BELGIUM/GERMANY The Vanswartenbrouck family (VSB group) is selling its glass recycling activities in Belgium and Germany to Rhenus Recycling GmbH. The Rethmann subsidiary confirmed the acquisition when contacted by EUWID. The company did not divulge the purchase price. The deal remains subject to approval by the competition authorities. Rhenus Recycling is taking over the GRL company based in Lummen, Belgium, with its processing capacity of 160,000 tonnes of waste glass per year. Likewise, its sister company GRI in Dormagen, Germany, is being sold to the Rethmann subsidiar y. GRI can process up to 280,000 tonnes of flat and hollow glass per year into cullet for the glass industr y. According to Rhenus, the around 100 employees at the two sites are to transfer. No changes were planned for the management. In addition, brothers Raf and Steve Vanswartenbrouck would stay on in an advisor y capacity, Rhenus reported.

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Container glass welcomes EU proposals IRELAND Derrylin-based leading glass manufacturer and contract bottler Encirc and Siemens PLC (UK and Ireland) have agreed a memorandum of understanding that will see both companies enter a strategic technology and digitalisation partnership in the coming years. The memorandum represents the start of a technology partnership agreement between the two companies, designed to spearhead the deployment of advanced digital technologies and services across Encirc’s operations. Encirc, part of the Vidrala group since 2015, has two sites; one in Fermanagh, Northern Ireland

and one in Chester England. With over 33 per cent market share, the company manufactures container glass for the food and beverage industry. With its state of the art contract bottling facility, 52,000m2 automated bonded warehouse and a multi-faceted logistics offering, Encirc supports its customers with unrivalled sustainable beverage supply chain options. The company plans to invest significantly in furnace rebuilds over the next five years at both its sites. The technology deal comes into effect immediately and will be based on three core themes: a commitment from Siemens’

Digital Factory and Process businesses to supply innovation and new product across Encirc’s sites; a unique energy partnership designed to significantly reduce emissions; and Siemens’ commitment to deliver a wholesale digital transformation project. Adrian Curry, Managing Director of Encirc, said: “We are looking forward to developing this strategic partnership with Siemens, which will enhance our reputation as leaders in technology, innovation and sustainable manufacturing. It represents Encirc entering a new phase in terms of digitalisation and future technologies. Further reducing our energy use and emissions will also build on our

commitment to provide customers with the most environmentally friendly route to market possible.” Siemens UK and Ireland CEO Juergen Maier commented: “This is a landmark technology partnership which is about two central challenges – industrial digitalisation and reducing carbon emissions. We’re delighted to be partnering with Encirc. Not only are they progressive when it comes to innovation, they also understand that this relationship has the potential to be a platform to show industrial digitalisation in action in the glass sector. We’re looking forward to joining them on this important journey in the coming years.”

Guardian mulls investment in new float plant POLAND Guardian Glass is spending $1.5 million for detailed engineering designs and site reviews for a potential second float glass facility in Poland. Guardian Glass currently operates a float glass plant in Czestochowa, Poland and is considering adding capacity with a second plant to meet its customers’ growing demand for coated and fabricated glass products in both the commercial and residential sectors. This initial spending on the engineering design work is intended to accelerate the

completion of a new plant that could become commercially available during the first quarter of 2019. Additionally, the location is still under consideration. A new facility would be expected to produce 1000 metric tons of float glass per day and include a technologically advanced magnetron sputter coating machine to produce highperformance, energy-efficient glass for customers in Poland and neighboring countries. Guardian Glass President and CEO Kevin Baird says that

a potential investment in a second float glass facility in Poland is further demonstration of Guardian’s confidence in both the region and the future of the glass industry: “The potential for a second plant in Poland would fit with our global strategy and our marketing considerations. We are confident we will find new opportunities and expanded channels for our glass products in Europe.” “The increase in glass demand is driven by the general trend across Europe to increase natural light in residential and

commercial buildings, as well as the conversion of more and more residential windows from double to triple glazing,” adds Guus Boekhoudt, Vice President of Guardian Glass in Europe. “With Poland being commonly recognized as the hub of European residential window manufacture, it would be a logical option for a new float glass facility.” In addition to the Czestochowa plant, Guardian Glass also maintains facilities in Oroshaza, Hungary; Thalheim, Germany; and Ryazan and Rostov, Russia.

Venvidrio could be “on the brink” VENEZUELA Venvidrio, Venezuela’s staterun glass company that will operate the former Guardian Industries float plant seized by the government last year, could be on the brink of bankruptcy, according to a report from an independent newspaper. Venvidrio was created in 2010 from the takeover of another U.S.-based glass company, Owens-Illinois. Its primary focus is making glass bottles and jars for food and other industries. According to El Carabobeno, 90 percent of Venvidrio’s

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operational capacity is paralyzed at its main plant in Los Guayos. Nine of the 11 furnaces are suffering heat damage due to the improper use of materials from Guardian de Venezuela. Raw material for flat glass requires a higher temperature than material for container glass, which has less magnesium oxide and sodium oxide and more silica, calcium oxide and aluminum oxide. Compounding the problems for the glass industry in Venezuela is a lack of soda ash,

which has to be imported. The country’s ongoing economic meltdown has hampered many industries from buying raw materials for production. The government declared a state of emergency in May 2016 and ordered the state seizure of factories that have closed because they can’t get raw materials. For example, Venezuela seized a KimberlyClark plant in July 2016 after the U.S. diaper maker shut down because of deteriorating economic conditions in

the country. According to El Carabobeno, 600 Venvidrio workers have been dismissed. Previously, Venezuela’s Labor Ministry gave Venvidrio the responsibility for restarting operations at the Guardian plant in Monagas state, according to reports in Venezuela’s media. Previously, President Nicolas Maduro’s regime had turned the plant over to the firm’s workers, who were to operate it under government supervision for one year.

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31.03.17 12:41

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People and Places

Samuel Leaper Joins AAMA announces Lewis Henry F. Teichmann, Inc. retirement United States Sam Leaper joined Henry F. Teichmann, Inc. as Sales Manager as of March 1, 2017. Sam has over 15 years of experience in the glass industry, during which time he has held a variety of technical and sales roles. Holding diplomas and an apprenticeship in both mechanical and electrical engineering, he began his career as an Electrical Engineer, advanced into global projects as a Field Service Supervisor, and more recently exceled from Sales Engineer through to International Sales Manager at E.W. Bowman. Henry F. Teichmann, Inc., a world leader in engineering and contracting to the glass industry

United States

worldwide, is headquartered in the Pittsburgh area of USA. It is celebrating its 70 years of outstanding services to the glass industry worldwide.

CNUD enters into GFT agreement Belgium The Belgian company CNUDEFCO International N.V., the world's number one in annealing lehr and tin bath solutions, part of the BMT Group, is announcing its participation in German Glass Float Technology company GFT GmbH. CNUD-EFCO has signed a financial participation agreement with the owners of GFT. GFT is a highly reliable partner recognized for implementing improvements in float glass and cover glass production processes. GFT has several breakthrough innovations and patents to its name. CNUD-EFCO is the uncontested world leader in annealing lehr and tin bath roof and accessories for float, hollow and cellular glass. Géraldine Seynaeve, Chief Executive Officer of Cnud-Efco: "There is high demand within the glass industry for integrated process solutions. As an important technology supplier in this industry, we recognised opportunities in this market situation. By joining forces with GFT, we are strengthening both companies' leading positions

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within the glass industry. We will offer proven integrated process solutions, equipment and after-market services from bath to lehr according to the latest expectations of the glass manufacturers in order to control capital investments and realise operational cost reductions," Dennis Schattauer, co-owner of GFT:."Combining our undisputed companies' expertise will give GFT access to CNUD-EFCO and BMT manufacturing capabilities, project management and financial structures and allows us to further invest in the development and delivery of a total solution that improves overall production yield. Our ultimate goal is to combine our experience along with a wider portfolio of innovative technologies within the market," "GFT will continue to develop its activities in waste heat recovery and utilities," Robert Lamy, Chief Commercoal Officer of Cnud-Efco:"Our partners around the world will benefit from our strengthened position and our teams of glass solution experts will enhance support for all of our customers,"

Dean Lewis retired from the American Architectural Manufacturers Association as of the end of 2016. He was a long-time staff member and, most recently, technical manager, training and education. "AAMA membership and staff alike will miss the wealth of knowledge and histor y that Dean provided during his long tenure at AAMA," says Rich Walker, AAMA president and CEO. "We'll miss Dean the 'answer man' and his voice moderating the webinar series - two of Dean's favorite responsibilities. Dean has been an integral part of the association for 18 years, and his years of ser vice led, in large part, to the value that AAMA offers to its members. On behalf of ever yone at AAMA, we wish Dean a much-deser ved slower pace and lots of time and joy with his grandchildren." Since joining AAMA in 1999, Lewis has utilized his technical and industr y experience to

advance many of the programs and ser vices offered by the association. Lewis brought his experience in technical training to begin and advance the FenestrationMasters professional certification program, as well as other educational initiatives. Lewis began his career in the fenestration industr y in 1973 at PPG Industries (now Vitro Architectural Glass) with positions in project engineering, product design, and sales and customer technical support, and has ser ved on committees of ANSI, ASTM and ASHRAE. Further experience includes teaching in the industrial and militar y sectors and nearly 40 years of managing technical training, publishing and certification. He has ser ved on standards and certification committees of a dozen national and international organizations. During his AAMA years, he also ser ved as certification manager.

Bavelloni to purchase Glaston unit? United States/Canada Bavelloni SpA is starting negotiations with Glaston Corporation on the purchase of the company’s Glass PreProcessing business in USA and Canada. This operation is aimed at consolidating Bavelloni’s presence in the United States and Canada, where the Company is currently represented by Glaston America. In line with its strategic plans, Bavelloni SpA is committed to strengthen its position through a direct presence in North America, which is one of its main markets. By investing in the USA, Bavelloni SpA will be able to be closer to its numerous loyal customers, to promote the

Bavelloni brand and to put more and more focus on the local business. At the same time, Glaston and Bavelloni SpA are defining the renewal of their collaboration where Glaston acts as official Bavelloni distributor in Mexico, Brazil and Singapore area. “The American market has always been very important to the Bavelloni brand” states Mr. Franco Pirola, Sales Director and Partner in Bavelloni SpA. “This transaction will enable us to further expand our presence and our business in the United States and in Canada. The collaboration with Glaston has been crucial in the last 18 months, and it will continue to be so even in the future.”

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glass technology

RAPIDLINE Series – Complete Cutting System Solution. Hope to see you at: 24. - 27. May 2017 Beijing, China German Pavilion • Stand 178

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.

HEGLA • Industriestr. 21 • D-37688 Beverungen • E-mail: info@hegla.de

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Heye Symposium 2017: Digital progress in glass container production Germany This year’s Heye Symposium for international glass container industry customers will address a series of key challenges based on the theme ‘BSMART. MOTIVATE. OPERATE’. Representing a valuable opportunity to learn from a panel of international experts and exchange ideas, while also networking with fellow glassmaking professionals from around the world, this meeting is organised by Heye International GmbH and takes place in Hamburg, Germany on 19-21 June 2017. The symposium will explore, for example, the digital progress realised by other manufacturing industries, with the chance to discuss existing and future possibilities for implementation in glass container production with leading authorities on the subject. BSMART ‘Being Smart’ is the ability to adapt to a constantly changing world, with sometimes unforeseen developments emerging. In addition, there is the important evolution of digitalization to address. Communication structures change, as do factories, with Internet of Things or AI (Artificial intelligence) at the centre of discussion. Heye Symposium 2017 delegates will learn about the latest developments, including the following presentations: • ‘Digital transformation – Challenges and chances’ (Ernst Raue, formerly Head of CeBIT and a leading IoT Expert). • ‘Digitalization in the traditional steel industry’ (Premal Denali, CFO and CF Strategy, ThyssenKrupp Steel Europe). • ‘Investment decisions in times of uncertainty’ (a Senior Manager from the Economic Department, UniCredit). MOTIVATE ‘Motivation‘ represents a second important element of this year’s Heye Symposium. What trends are evident within customers’

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Adelio at GPAD United States

operations, what motivates people in the digital age and how can the best employees be identified and retained? Key presentations in this session include: • ‘Growth rates and global glass container industry trends’ (Euromonitor Senior Analyst). • ‘Friends of Glass – Latest news on FEVE’s European consumer campaigns’ (Michael Delle Selve, Head of Communication at FEVE). • ‘The digital age – Challenges to corporate culture and employee training’ (Dr Cassandra Riedl, Leadership Expert). • ‘How we innovate at Ardagh’ (Sharon Todd, Head of Marketing at Ardagh Glass Europe). OPERATE The evolution of perfect operational procedures is essential for Heye International, developing the skills to lead glass container plants to the highest levels of productivity. So how can the latest motivational and organizational concepts be combined with new technologies, what is possible today and what can be expected in the future? Confirmed presentations include: • ‘Concepts for managing operational excellence at Ardagh’ (a speaker from Ardagh Glass Europe). • ‘Solutions for the Smart Plant’ (Heye Product and

Production Experts). • Discussion on the glass plant on the future (all participants). NETWORKING OPPORTUNITIES In addition to providing a professional programme of presentations, sufficient time has been allocated to enjoy individual discussions for the establishment of new contacts and/or the renewal of existing ones. Heye International looks forward to welcoming invited guests to the LeMéridien Hamburg hotel on 19-21 June 2017.

The month of March saw the GPAD conference in New Orleans (Louisiana), at which Adelio was a Gold Sponsor.  The main aim of the event was to educate the glass processing companies on how modern and advanced machinery and software technology can help their companies to gain competitive advantages.   According to Adelio, “With our presentation ‘Not just machineries but also tailormade SOLUTIONS’ we focused on: • non-standard applications/ options realized during the last years to fulfill special customers’ needs: from huge glasses to very small ones, from technical glasses to new materials, from parallelograms to grooving solutions and more.  • Automation, robot and integration solutions we are able to offer (thanks to different and new interesting collaborations).   • Industry 4.0: possible benefits for our customers, mainly related to Teleservice and Data Logging purposes.  Take a look at the video of our presentation on youtube”

Guardian names new GM South America Guardian Glass named Ricardo Knecht general manager for South America. Knecht is responsible for developing strategies, setting priorities and executing critical initiatives for the company throughout South America. Guardian Glass’ South American operations include two float glass plants in Brazil and distribution centers in Argentina, Colombia and Costa Rica. Knecht will be based in Brazil. “This is a new position and an important role for the organization as we work to create value for our customers, the company and the communities where we operate,” says Rick

Zoulek, vice president, America, Guardian Glass. “Ricardo will be responsible for driving innovation, eliminating waste and improving on how we create an exceptional customer experience.” Knecht was most recently general manager of Saudi Arabia Basic Industries Corp., South America, where he was responsible for sales and application development for specialty and core materials, as well as supply chain, manufacturing and business development activities for the region. Before that, he was chief financial officer of GE Plastics for Latin America.

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From Concept to Completion • Glass Furnaces • Batch Plants • Turnkey Projects

HFT provides engineering, procurement and construction services, as well as, turnkey projects for the glass industry. Our leadership, abilities and attention to details have given HFT a highly respected reputation worldwide.

Engineers and Contractors to the Glass Industry

„We demand perfectionBohle our first choice supplier.“

Visit Bohle at China Glass th May 24th - 27 55 -0 E2 th oo B Bottero has relied on our quality cutting equipment for over 30 years. All Silberschnitt® products are manufactured by Bohle on high precision machinery and with over 90 years of experience. Excellent cutting results and long service life convince our customers worldwide – like Bottero.

3009 Washington Road • McMurray, PA 15317-3202 • USA

www.hft.com +1 724 941 9550 Fax: +1 724 941 3479

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cyoest@hft.com

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RE PO

News

Raw materials: the root of the industry Jens Rosenthal, Managing Director, EME Maschinenfabrik Clasen GmbH, discusses EMEâ&#x20AC;&#x2122;s approach to increasing sophistication in the most elemental part of the glass industry. Glass is a fascinating material which has been in existence for into the correct silo. For this reason only the operator responsible thousands of years, and which has influenced the development of may release the corresponding silo for filling, after the initial human civilization. No other material can be used for such a wide inspection of the material. Barcode or chip card identification as range of applications. Nowadays glass is found in all aspects of well as mechanical measures, such as pinch valves or slide gates installed in the conveying lines, can reduce this risk of incorrect daily life. People value its transparency in architectural and automobile filling. The release of a conveying line is shown on the control monitor and indicated applications. Modern at the filling point by a communication is via visual signal. Smart phones with Where mechanical touch screens fronted conveyors are used by ultra-thin glass. The the raw material is production of clean fed into a hopper and electricity with solar transported to the silo panels lasting over 20 via vibrating chutes, years has been made bucket elevators, belt possible only as a conveyors and diverters. result of the chemical Sensors are installed stability of glass. Glass at the transfer points packaging protects to monitor the product foods and drinks from flow and to prevent contamination without overfilling. Mechanical comprise of taste and conveying systems are quality. normally used for wet Modern glass is a and abrasive materials. technical material, Pneumatic conveyance which is produced with is used for dusty and precise properties for toxic raw materials, specific needs. The raw as these transport materials themselves, systems are totally their deliver y, storage, EME batch house, combination of concrete and steel silos enclosed and dustproof. dosing and mixing, Two methods are widely are the basis for used in the glass these high-quality industr y, depending on the raw material quantities and the end products. EME Maschinenfabrik Clasen GmbH is one of the leading conveying distance: - the positive pressure system (dilute and dense phase) suppliers of batch preparation plants, cullet handling equipment the negative pressure system (vacuum). - and batch charging technology to the worldwide glass industr y. Pneumatic systems must be carefully designed to prevent product EME provides custom-designed and efficient solutions for almost all types of glass production, from float glass to containers and damage, excessive energy consumption and equipment wear. from fibres to tableware. Small quantities are generally fed manually. Glove boxes, bag and EME was founded in 1920 and later joined the SORG Group in 1987. The SORG Group of companies, comprising of EME, big-bag discharge devices are used for these purposes. Jet filters Nikolaus Sorg and Sorg Keramik Ser vices (SKS) supply all the with radial fans are used to force convection to keep the dust necessar y equipment and technologies required in the complete emission levels to an absolute minimum at the feeding stations, batch and melting process, beginning with the deliver y of the raw along the conveying lines and in the silo area. To minimize materials right through to the transfer of the conditioned glass material loss, the dust removed from the filters is fed back to the to the forming process. This uniquely combined competence of original material. expertise can only be found within the SORG Group. Raw material storage â&#x20AC;&#x201C; Forward thinking â&#x20AC;&#x192; Various types of silos are available for storing the raw materials, Delivery of raw materials - secure, rapid and unambiguous The raw material deliver y can take place in a number of ways. depending on the storage conditions, deliver y method and storage Minor ingredients are supplied in bags, dr y components arrive in capacity required. The Batch components have different flow characteristics. Silo tankers by road or rail and moist materials by open trucks. Cullet is introduced directly from the production or by means of front end shapes and sizes must be designed so that the materials can be easily discharged. Abrasive or wet materials require special loaders from the cullet storage area. It is extremely important to ensure that a raw material is filled measures such as material pockets, wear-resistant linings,

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SORG offers more:

VALUE BY DESIGN SORG is delivering customers value by focusing on

VALUE BY DESIGN

quality and design. Value is not the by-product of making something cheaper. Value is designed into our products to achieve the lowest total cost of ownership for our

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customers. Great designs take these value factors into account. www.asianglass.com

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News

rust protection and drainage devices. It goes without saying that contamination of the batch components must be prevented. The bunkers and silos are provided with bin activators, air pads, fluidization cones and other discharge aids for lumpy or sticky materials. Mechanical or capacitive filling level indicators prevent overfilling. Continuous level measurement and metering of raw material consumption can be carried out on the basis of weight determination by using strain gauges, load cells or by level sensors using different types of measurement techniques.

(raw material delivery, raw material storage, batch preparation) and the production area. Conveyor belts and bucket elevators are normally used for the batch transport. All transport systems are designed to minimize segregation. The number of transfer points is reduced to a minimum and the drop heights kept as small as possible for the same season as well as to limit the development of dust. All transfer points are enclosed and provided with filters to prevent dust emission to the surroundings. Cullet is added to the batch as a sandwich layer, before reaching the furnace silos.

Measurable precision – Dosing and Mixer area weighing The Key to Success – The The batch preparation equipment Control System is designed to meet individual The control system is the nerve requirements. Screw and vibratory centre of a modern batch plant. conveyors are used. The dosing is Each control system reflects the carried out via a coarse and fine flow architecture and operation of the process. With vibratory feeders this individual plant. is achieved by using thyristor controls EME`s main control concept and in the case of screw feeders by is to use software solutions using frequency converters. inside the PLC to the greatest Metering accuracy depends largely possible extent. EME avoids the on the flow characteristics of the raw use of special hardware such as materials. Flow characteristics are not weighing computers that constrain stable, as they are influenced by many EME and their customers to one factors such as the humidity of the specific supplier. By using a ambient air of the raw material itself, simple software solution EME has the temperature, the grain size, the the unique ability to fully test the bulk density, how long the material has PLC software of a batch plant in been stored and so on. To optimize the a simulation – without having the dosing procedure, the control system Delivery of raw material – bag unloading control panels available in the automatically adjusts the set points office – and over an unlimited time period. In case a control system for coarse and fine dosing and activates the silo discharge aids, if requires an extension or a program sequence has to be modified – the material flow rate is too low. For raw materials with a tendency everything can be tested thoroughly before EME activates the new to continue flowing, flaps - so-called quick acting flap valves – are functions in a customer’s running system. installed in the outlet of the metering units. The metering procedure is controlled by means of metering/weighing inputs into the PLC. If raw materials with varying moisture contents are used, continuous moisture metering devices can be installed. These are used as a India // Batch chemicals basis for set-point correction and calculation of the amount of water that must be added during mixing in order to maintain stable batch India has initiated a probe to the domestic industry,” DGAD moisture content. The determination of the water content is made by against dumping of a chemical said in a notification. In the microwave sensors. used in glass and other probe, the DGAD will determine Only electronic scales are used for weighing. Load cells measure industries from China to ringthe existence, degree and the weight of the raw material entering or leaving the scale. In order fence local manufacturers from effect of alleged dumping and to prevent caking or corrosion, the material used for the scale cheap in-bound shipments. then recommend the quantum containers should be suitable for the raw materials to be weighed. Sandhya Dyes and Chemicals of anti-dumping duty, which if Ltd has filed the application levied, would be “adequate” to It depends on the mixture before the Directorate General remove the injury to the domestic Effective batch mixing is of vital importance to the melting process. of Anti-Dumping and Allied industry. Best glass quality can only be achieved in the melter when the batch Duties (DGAD) for initiation of The period of investigation is has the necessary homogeneity. the investigation and imposition July 2015 to September 2016 EME offers a wide range of mixing solutions based on specific of the duty on the imports of (15 months), including data from customer needs. A pneumatic mixer has been developed for ‘Phosphorus Pentoxide’. 2013 onwards. Countries initiate use with very fine and dry raw materials which makes it possible The DGAD has found “sufficient anti-dumping probes to determine to obtain excellent homogeneity with these materials without a evidence of dumping” of the if the domestic industry has been dusting problem. chemical from China. “The hurt by a surge in below-cost authority hereby initiates an imports. As a counter-measure, Clean delivery – Batch transport investigation into the alleged they impose duties under the The transportation of the batch is the direct link between the batch plant dumping, and consequent injury multi-lateral WTO regime.

Dumping investigation initiated

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Thin Glass

We have solutions for all types of glass production: Container Glass Glass containers are one of the most important packaging materials in the food, beverage, medical and cosmetic industry, with a huge variety of shapes, sizes and colors.

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Tableware

Single or multi furnace batch plants High quality container glass requires a precise batch composition and accurate cullet addition. One or several furnaces with different glass types can be served from one batch plant without contamination – Just perfect. From raw material delivery to batch charging We manage all your raw materials including cullet and provide sophisticated batch charging technology. Completely sealed doghouses, less dust, less emissions, less energy losses and now also modular for full redundancy. As the leading supplier of batch plants, cullet handling equipment and batch charging technology, EME has developed and successfully delivered specific solutions for the container glass industry. Enjoy these benefits – go with EME

EME Maschinenfabrik Clasen GmbH · E-Mail: contact@eme.de · www.eme.de

Glass is our Passion

News Anaylsis

News

PET ban gives glass boost T

he Sri Lankan Central Environment Authority (CEA) is to ban the sale of carbonated drinks and fruit juices in PET (PolyEthylene Tetraphthalate) bottles below 1 litre, to control the plastic menace in the country. CEA Waste Management Director, J.M.U. Indraratne said that, instead, the Beverage industry will be encouraged to sell drinks in glass bottles. However, the industry could use PET bottles of 1 litre or more, for their beverages. Water will be exempted from the law. He said this would minimise environmental problems caused by plastics. It is also intended to curb haphazard disposal of and burning plastic bottles, causing health hazards, together with economic and social problems. The CEA, at the end of the 2016 Siripada season, collected 5.5 tons of PET bottles and 830 kg of plastic waste. In a Polythene/Plastic and Electronic Waste Prevention Week in October last year, involving all Districts, the CEA collected 71.59 tons of plastic/polythene and 440.38 tons of e-waste, with Colombo contributing the highest of 222,738 kg of e-waste and 9,225 kg of plastic/polythene, while Mullaitivu contributed 845 kg of e-waste and 165 kg of plastic/polythene. Mr Indraratne said that plastics was losing its value in the world market. He said 1 kg of recyclable plastic earlier fetched up to Rs 46 per kg but now, it has come down to Rs 6 per kg. Consequently, many people who collected and sold used plastic bottles, have abandoned the trade. The CEA says the use of glass bottles, while greatly reducing the amount of discarded bottles, will also have a recycle value. Additionally, the CEA will also ban the import of recycled raw material and the sale of lunch sheets below 40 microns, in the local market. At a CEA Expert Committee meeting in November 2016, officials from the CAA, Ministry of Health, university Researchers and industrialists related to plastic manufacture discussed a future action plan for a national policy to manage plastic, by initially doing away with lunch sheets, and then increasing the thickness of shopping bags to 40 microns. Mr Indraratne said a Cabinet paper will be submitted for approval, soon. Advisory Committee Chairman, Anton

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Hemantha said that, “However, the Packaging industries were not consulted in the decision making. He opined that, banning PET bottles below 1 litre capacity, will be disastrous for the Beverage market. He said PET bottles are very handy with soft drinks and yoghurt packaged in economic PET bottles. Moreover, thousands of tourists visiting the country opt for the PET bottled drinks. “We need economical plastic bottles,” he said. “We need lunch sheets to wrap takeaway food and shopping bags over 40 microns will be costly. Supermarkets will pass the buck to the customer,” he said. To produce high density polyethylene for shopping bags, more raw material has to be imported with extra money spent on it. Currently, 1,400 metric tonnes of raw material is imported. Again the disposal of the thicker gauge will prove even more difficult.

THE WAY THE CEA IS GOING IT IS NOT GOING TO WORK. THE ONLY SOLUTION IS RECYCLING. COLLECT AND ADD VALUE TO THE PLASTIC WASTE. Mr Hemantha conceded that, while the world is going in one direction, producing thinner gauge plastic, Sri Lanka is taking a u-turn. A PET bottle manufacturing company for leading brands of carbonated drinks and fruit juices said the ban on economy sized PET bottles will have an adverse impact on the economy. They said the economy bottles are for third world countries, whose people cannot afford the big bottle. The Packaging industry will support the government, if it comes

forward with a proper mechanism for the disposal of plastics. It was argued that, substituting glass bottles will only create additional weight, cumbersome handling and increased transport cost. The sub-continent has been leading the fight against PET for some time. Just a few months ago, controversy surfaced across the sea in India when The National Green Tribunal (NGT) issued a notice to a nongovernment body, for the latter to reply to a charge that it was acting secretly on behalf of the glass industry in seeking a ban on the use of PET (polyethylene terephthalate) packaging for medicinal products. The charge was made by the PET Container Manufacturers Association (PCMA). The NGT has sought a response from the body in question, Him Jagriti Uttaranchal Welfare Society. The next hearing is on November 30. Him Jagriti had sought the PET ban on the argument that the packaging ensured leaching of harmful chemicals and heavy metals into pharmaceutical content. PCMA has claimed the petition was filed at the behest of business rivals of the plastic industry. Him Jagriti, it contended, had suppressed the fact that its president was a consultant to the glass manufacturing industry. “The present proceedings are not based on environmental concerns but commercial interests of the glass industry,” it had said. An experts committee constituted by the Union health ministry had earlier told the Tribunal that there was no conclusive proof that PET bottles used for packaging of medicines have ill-effects on human health. The panel was set up by the ministry in August last year and had told the NGT this March that PET could be used safely for the purpose, under a regulatory system. However, this represented an about-turn for the government. Until March 2015, several regulatory authorities held the common stand that PET bottles and plastic multi-layered packaging was injurious for human health, beside being a serious environmental hazard. The controversy had threatened the Rs 4,000-crore PET pharma packaging industry. The major PET producers are Reliance Industries, Dhunseri Petrochem and JBF Industries. About 600,000 tonnes of PET is produced in India every year, of which the pharma sector uses 100,000 tonnes.

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ANALYSIS: IGU

Closing the w Insulating glass markets in India

ne of the lowest per- capita consumers of insulating glass, Indian glass market has witnessed a very brisk growth in consumption of this highly value added variety of glass despite a general slowdown in overall flat glass industry in the country. Glazing has evolved exponentially in the past few years to become an integral part of projects. Today, India demands around 160,000 mt of glass per month, of which over half is clear float glass. Demand for glass is concentrated in the metros and Tier-I and Tier-II cities. While metros and Tier-I cities enjoy a healthy market for all kinds of glass, TierII cities are witnessing steady growth in demand for high-performance glass, including insulating glass. Till a few years back, there was a common myth prevalent in India that double glazing makes sense only in cold climates. But, Indian developers are using insulating glass in huge amounts in the newer constructions. Nowadays, more commercial buildings and some residential buildings are using insulated glass in an increasing manner for improved thermal insulation and sound insulation. Spurred by the demand in new commercial constructions, the insulating glass demand has also got support from the retrofitting and upper segments of residential constructions in last few years. Indian insulating glass industry is highly fragmented. It is clustered in six geographical locations that fall near the six major cities of the country. These processing clusters are located in and around Delhi, Mumbai, Chennai, Hyderabad, Kolkata and Bangalore. In last two- three years period, a number of insulating glass units have started operations in smaller cities to cater to demand of insulating glass in these towns. Since, a large market share of total insulating glass market was controlled by smaller players till a few years back, who put little efforts to improve quality and reduce costs. However, with the entry of larger glass players, this situation is changing fast. In geographical terms, the West India region comprising of cities of Mumbai,

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Pune and parts of Gujarat contributes for 30 percent of the insulating glass consumption in the country, due to high number of commercial establishments. South India region, comprising of Bangalore, Chennai, Hyderabad and parts of Kerala follows with 24 percent. The North Indian market, comprising mainly of Delhi and the National Capital Region closely follows it with 23 percent consumption of the total insulating glass consumed in the country. Central India takes 16 % of total insulating glass consumed in the country. East India currently contributes only 7 percent of the consumption. However, with a renewed focus on real estate in West Bengal and North Eastern states this is set to change.

Market potential

Currently accounting for 2.34 % of total flat glass used in the country, insulating glass segment is one of the highly under-developed sub-segment of processed glass industry in India. Considering the hot climate, high degree of noise pollution, insulating glass consumption in India is expected to grow manifold in coming years. “Currently, 93 % of the total insulating glass demand comes from commercial construction segment in the country. Even in the commercial segment, a large part of total demand comes from prestigious constructions such as four and five star hotels and MNC’s offices,” B Anand, Sales Manager for Mumbai region at FG Glass Industries, a Taloja ( Maharashtra) based and Mumbai headquartered glass processor told Asian Glass. He further told, “There has been some shifts in consumption pattern of insulating glass in last two- three years period. Earlier, almost all the demand for insulating glass originated from prestigious commercial constructions. However, in 2016 about 20 % of our IG installations happened in mid scale commercial buildings. Many of our existing clients, who have been using reflective glasses on the windows and facades, have started experimenting with insulating glass installations.” Vivek Katju, CEO of Noida Based Glass & Glazing Limited, a glazing solution provider told AG, “ With increasing number of insulating glass producers, price

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ANALYSIS: IGU

window of insulating glass has registered a decline in last few years. This has led to healthy growth in consumption of insulating glass. Earlier, we had a limited number of requests for installing IG units, but in last two years, we have seen the demand from some of very unexpected quarters. With this rate, I think, the demand pattern will change completely in coming years.”

Floating in…

Over the last few years, there have been increased efforts by Indian float glass manufacturers such as Asahi India Glass Ltd, Saint Gobain etc, to increase their presence in the architectural glass processing space. With growth in insulating glass consumption expected to remain buoyant over the medium term, we expect more number of processing players and float glass manufacturers expanding their capacities and reach in insulating processing. Leading float glass producer Asahi India formed AIS Glass Solutions in 2004 as a subsidiary of AIS, with the objective to capture a share of value added glass solutions and products. Over the last 13 years, AIS Glass Solutions has emerged as India’s biggest & organised player in the architectural glass processing segment maunfacturing value-added glass products and offering end users a complete solution for their glass needs. AIS Glass Solutions has 3 state-of-the-art glass processing facilities located at Roorkee - Uttarakhand (North India), Taloja - Maharashtra (West India) and Chennai-Tamil Nadu (South India). In the month of February, Asahi India entered the glass replacement and retrofitting market by introducing ‘AIS Renew’ in the country. It is a solution which converts a glazed unit (SGU or IGU) into an energy-saving insulated glazed unit (IGU) by installing low-E glass from the inside. According to the company, “The installation procedure is very quick and does not require any scaffolding which makes it an ideal solution for energysaving renovations in existing buildings.” Vikram Khanna, COO – Architectural Institutional Business, Chief Marketing Officer (CMO), Asahi India Glass Limited says, “Global Market size of retrofitting

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& replacement of glass is estimated as 40% of glass used in architectural segment. The government in developed countries provide incentives (in terms of tax benefits) to the building owners for retrofitting for the purpose of reducing energy consumption and increasing the green rating of the building. In India, glass retrofitting is at a very nascent phase.” He further says, “With an increase in awareness about the carbon footprint, it is expected that retrofitting old buildings by incorporating energy efficient glass solutions will drive the market for replacement glass. AIS has introduced AIS Renew to address the need of glass retrofitting in India.” Erstwhile float glass producer, Sejal Architectural Glass Limited ( Sejal sold its float glass business to Saint Gobain India in 2011) is one of the most prominent names in Indian insulating glass industry. Operating as a glass processor since 1998, the company has its state of the art processing facilities for insulating, toughened, laminated glasses and decorative glass in Union Territory of Dadra, Nagar Haveli, District Silvassa. The company was among the first insulating glass producer, when it commenced commercial production of IG in 2000. Nishit Jogani, brand manager, Sejal Architectural Glass Ltd, says “Our products for architectural segement comprises of the Kool range of insulating glass units for thermal insulation, uniform air conditioner cooling and savings in power, that help strike an optimum balance between transparency and thermal insulation. They are used as external wall claddings, internal partitions and doors and windows. Tone Glass is the specially designed acoustic insulating glass unit ideally suited for noise control.” “The units could be configured with high performance glasses to achieve thermal insulation with acoustic insulation for special requirements. In addition, Tone Glass with laminated glass provides safety, security, fading control and acoustic insulation,” Jogani adds that company’s products have been used at hotels like Sea Princess, Regent Hotel and Sun-n-Sand Hotel Mumbai. Other float glass producers- HNG Float and Gold Plus Glass are also leading insulating glass producers. In fact, Gold Plus is originally a glass processor, who like Sejal Glass ventured into float glass production in 2011.

AG 17-2 asianglass

ANALYSIS: IGU

Besides the big five, Noida based GSC Insulating glass demand in India Glass is also one of the top five insulating Company 2012 2013 2014 2015 glass producers in the country. With its two 3.613 3.938 4.438 5.037 state of the art facilities located in two of Insulating Glass Demand the India’s largest insulating glass consuming Growth Demand 10.8 % 8.99 % 12.70 % 13.49 % markets ( Delhi NCR and Mumbai), the company has reaped rich dividends from Double IG Units demand 3.391 3.680 4.141 4.693 rising insulating glass demand in the country. 10.6 % 8.52 % 12.52 % 13.33 % The company produces insulating glass Growth demand in DIG upto 2500 mm X 3660 mm in various 222,379 sq 257,960 sq 296,654 sq 344,119 sq Triple IG units demand meters meters meters meters combinations such as clear, tinted, ceramic decorated or high performance glass in Growth demand in TIG 15.17 % 16.01 % 15.00 % 16.02 % annealed, heat strengthened or laminated form. GSC also supplies low-E option on All units in m. square metres unless mentioned available on 2 or 3 surface of the insulating glass unit. GSC claims that it is one of the Tier I producers of Insulating Glass in India few companies in the country to offer bent double glazed units. Company Location

Tier II Processors

Second tier producers were first to enter insulating glass production in India in late 1990’s. Though, tier I producers have increased their focus on production and supplying insulated glass, yet a major market share is controlled by tier II producers in the country. Currently, there are about 35 second tier insulating glass producers in India. Though, in initial years almost all of the insulating glass producers were based in and around five major cities (Delhi, Mumbai, Bangalore, Chennai and Kolkata) but gradually a number of processors have come up in smaller cities. In fact, more than 50 % of the new insulating lines have been installed in the smaller cities in last three years. Asian Glass interacted with a number of Tier II insulating glass producers and installers to know about the state of insulating glass industry in the country. Robin Mukesh, CEO of Sahibabad based Birkan Engineering Company Limited told Asian Glass, “insulating glass usage is on a steady rise in India due to a number of factors. Increased awareness among the users, lower prices and increased product varieties (low e coating on one or more sides) has made these type of glasses very popular in recent years.” Sandeep Kochhar, Managing Director of Bhopal, Madhya Pradesh based Kochhar Glass says, “ After some initial challenges, Indian consumers are increasinglt turning to the usage of insulating glass. While, large scale usage of insulating glass in commercial constructions in windows, curtain walls and facades has become common place in metro cities. What is heartening for the glass industry and processors is that commercial constructions in smaller cities have started using this higly useful value added glass product. We have supplied insulating glass to a number of projects in smaller cities in central India.” Kochhar Glass Private Limited is one of the oldest glass processors in India . The company completed its 50 years in 2016. It entered into insulating glass processing in 2010 and has supplied insulating glass to about 70 big and medium projects. Gurmeet Singh, Managing Director, Gurind Glass Pvt Ltd, which provided and installed insulating glass to a 18 storey commercial complex in Gurgaon says, “We have installed doubly glazed and factory sealed panels of more than 18 different strength specifications and over 200 sizes in this project. The panels are of varying thicknesses and each feature two glass pieces of about 8mm to 12mm thickness, buttressed by a 12 mm spacer for strength and resilience. The length and thickness of each panel depends on the height and the location where the panel is to be fixed. Also, the strength of a panel needs to increase with an increase in altitude. Hence, glass panels at higher altitude are strengthened with stainless steel in addition to aluminium.”

asianglass AG 17-2

Asahi India Saint Gobain India

2016 5.894 17.01 % 5.481 16.79 % 412,658 sq meters 19.91 %

Multi locations Chennai, Bharuch and Bhiwadi

HNG Float Glass

Halol

Gold Plus Glass

Himachal Pradesh and Sonipat

Sezal Glass GSC Glass Limited

Silvasa Noida, Navi Mumbai

Stakeholder viewpoint

Jaspal Singh, Managing Director of Bhambra Interational, a glass processor based at Faridabad ( 30 Kms away from New Delhi) told Asian Glass, in last few years, a number of value added glass products have made insulating glass quite popular in the market. In particular, low e glass has transformed the market dynamics of insulating glass industry. A number of our clients have started demanding low e-coated glass for containing the transmission of heat and light. Though, it costs about 30-40 per cent more than normal glass, so clients sometimes need encouragement to spend extra money. In fact, low e-coated glass variants can be hard-coated for use as single glazing with comparable outcomes to a double-glazed unit with clear float glass. Such single glazing in clear, neutral and different colour shades is commercially more viable, therefore especially preferred for residential buildings.” “We have used insulated glass units for our projects Devagiri Divine, Temple Bells, Saketh Hill Side, Silicon Pride and Aditya Harmony,” according to Kashinath B, Director, 5 Elements Realty, a construction company based in Bengaluru. “For the best performance of the unit - in terms of U-value and solar heat gain coefficient- we carefully scrutinise the properties of each layer of glass and appropriately determine the width of the cavity, seal type and content of the cavities between the glass layers.” However, being a very price sensitive market, it is not always very easy to sell/ promote insulating glass units in Indian market. Vivek Gupta, Marketing Manager at Noida based SK Tuff Glass told Asian Glass, “Since IG units are quite expansive, most of our customers take a long time before opting for IG units. It needs a lot of persuasion from our side about the long term benefits of these products to these customers.” He further says, “Although, insulating glass is getting quite popular in many commercial constructions. But, it will take a long time and awareness building from the processors to make insulating glass popular in India on Western countries trends.”

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ANALYSIS: IGU

Says Rajeev Jain, director, marketing, Windorz India (P) Ltd – providers of curtain walls and glass façade systems for commercial projects says, “ The use of double insulated glass has become very popular due to better thermal and sound insulation requirements of most of commercial constructions. Besides, as per the surrounding sound levels, advanced glass combinations can be designed to achieve the required sound insulation such as choosing from various options in insulated glass and/or laminated glass combinations.” His company has installed insulating glass at various luxury hotels such as the Oberoi Wildflower of Shimla, The Grand of New Delhi, etc. Embassies and consulates such as the Greece Embassy, Canadian High Commission, Australian High Commission, shopping malls such as Select City Walk and Shop In Park, Commercial Buildings such as Global Business Park, Global Foyer and Vipul Sqaure etc. Condominium complexes like DLF Regency Park, IREO Victory Valley and numerous premium residences in Delhi. Use of acoustic films within glasses is also an effective way of ensuring better sound insulation. Talking about some of their hotel projects Jain says: “While Crown Plaza Hotel in Gurgaon has a combination of fixed windows as well as double glazing, at Jaypee Palace Hotel & Convention Centre Agra, we have covered three pavilions with stick type curtain wall system with insulated glass in the vision areas and marble in the spandrel areas.”

Issues and difficulties

One of the largest handicaps in the development of high usage of insulating glass in India has been its high initial cost. In an extremely price sensitive market like India, glass processors had to experience many hindrances in initial years to promote insulating glass. However, off late the reluctance of end users to insulating glass is on a continuous decline in tier I cities. But, it will take a few years for the end users in tier II and III towns to adapt to insulating glass in commercial and residential applications in a greater way. Speaking to Asian Glass, Satya Kumar Tyagi, Managing Director of Shipa Tuf Glass says, “ There is no doubt that the continued progression towards energy-efficient windows will increase the need for double and triple-pane insulating glass in India in coming years. But, we as processors have a huge responsibility towards explaining the benefits of insulating glass to end users in a better manner. Processors will have to reduce the cost of insulating glass to make it popular in the residential segment, which currently accounts for a miniscule of total demand.” Anmol Tripathi, CEO of India Glaze, a glazing supplier based in New Delhi says, “Use of triple pane IG units has registered a healthy growth in recent years. However, triple-pane unit is more complex than the standard doublepane unit because of the reaction that occurs with two sealed airspaces. The interaction of triple-panes with two airspaces and potentially three low e coatings becomes a complex equation. We had to experience a lot of hardships from the consumer in some of our triple IG installations as there were some manufacturing issues during processing. ”

asianglass AG 17-2

WEST INDIA, COMPRISING OF CITIES OF MUMBAI, PUNE AND PARTS OF GUJARAT CONTRIBUTES FOR 30 PERCENT OF IGU USAGE

Tier II Insulated Glass Producers in India Company

Location

Installed Capacity

Birkan Engineering Pvt Limited

Sahibabad

Two insulating glass lines

Kolkata

One insulating glass line

Taloja

Two insulating glass lines

Fuso Glass Limited

Chennai, Hyderabad and Mumbai

4 insulating glass lines

Impact Safety Glass

Bangalore

3 insulating glass lines

Ahmadabad

One insulating glass line

Kaenat Glass

Bhiwadi

One insulating glass line

Kochhar Glass Industries

Bhopal

Two insulating glass lines

Swastik Glass Industries

Ahmadabad

One Insulating glass line

Saraf Glass Private Limited

Kolkata

One Insulating glass line

Rio Glass Private Limited

Rajkot

One Insulating glass line

SK Tuff Glass

Noida

One insulating glass line

Bangalore

One insulating glass line

Jaipur

One insulating glass line

Ranga Reddy district (Telengana)

One insulating glass line

Secundrabad

One insulating glass line

Mumbai

One insulating glass line

Bangalore & Mumbai

Two insulating glass lines

Brite Glass India Limited Fishfa Glass

Shree Rang Glass

ABC Group of Companies Ridhi Sidhi Glass India Annex Glass Shipa Tuf Glass Alumilite Architecturals V Tuff

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ANALYSIS: Container glass

Uncorking potential container glass markets in Iran

Yogender Malik looks at how a newly thawed political situation means that the Iranian container glass market could be about to become a major player in the region.

oming out of the shadows of a two successive economic recessions, Iranian container glass industry had one of its best years in terms of production and demand in 2016. Healthy demand from food and beverage segment and continued steady growth from pharmaceutical and cosmetic glass sub-segments have led to a growth of 7.91 % in production of container glass in the just concluded year. Container glass consumption growth figures remained more significant at 7. 21 % as demand from various sub-segments remained steady in the wake of easing of economic sanctions. The growth in container glass production is expected to continue its northwards journey in the current year as production stablisation at two of the container glass plants is expected to achieve higher capacity utilization. Some of the existing plants, who were not operating at the optimum capacities, are also expected to achieve higher utilization levels on the back of increased demand from the end-using segments. On the consumption side, the growth is expected to retain the momentum of 2016 due to overall positive sentiment and increased spending on the food & beverages and lifestyle products. New investments in capacities by food and beverage companies after the removal of economic sanctions are expected to bring more cheers for container glass producers in the current and next two years.

Untapped and available

Iranian container glass industry has been able to tap most of the opportunities in the urban centers. But, other than Tehran, Esfahan and Mashhad, consumption of container glass on per capita basis is quite low in most of the provinces. Currently, Tehran (12 million inhabitants), Isfahan (4.2 million) and Mashhad (3.4 million) are the largest centers of Iran’s container glass consumption. Though these three cities account for 27% of Iran’s 81 million-strong population, but represent about 38 % of container glass consumption in the country. Wide disparity between per capita consumer spending is another factor that has curtailed the container glass consumption in these other provinces. For

asianglass AG 17-2

example, in Tehran, the urban young enjoy a living standard that is far above the country’s average – with per capita consumer spending of around £2,595 (105,253,703 Iranian rial) per annum – which is 60- 80 % higher than the per capita spending in other urban centers. Other than the big three big container glass consuming urban centers and provinces offers an excellent opportunity for container glass producers to increase their penetration and market share. In fact, larger share of future growth in container glass industry is expected to come from these regions in coming years. Provinces like Fars, Gilan, Kerman, Khorasan, Khuzestan, Yazd, Zanjan and Mazandaran are expected to play a key role in the growth of country’s container glass industry due to presence of container glass consuming sub-segments and rising per capita consumer spending. New investments, particularly in food and beverage industries in these regions are expected to give a new direction to Iranian container glass industry in next five years.

Positive demographics

With a population of nearly 80 million and growing annually by 1.3%, Iran has a young population, with 63% of its population below the age of 34. In particular, the young in Iran are expected to play a major role in future growth of container glass industry in the country. Iran is the 17th largest economy in the world, with a GDP of approximately US$430 billion in 2015 ( 2016 figures are not yet out ), and is expected to grow between 3 to 4% over the next five years. Iran is also expected to achieve the second highest disposable income per capita in the Middle East, after the United Arab Emirates, illustrating the potential and future growth indicators for container glass industry.

Export growth

Though, Iran is not the largeest exporter of container glass in the region. But, with new capacities coming on-stream, Iranian container glass producers are

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ANALYSIS: Container glass

GROWTH IS EXPECTED TO RETAIN THE MOMENTUM OF 2016

increasingly looking to export their products in the neighbouring markets. After capacity utilization from the new plants stablises, Iranian container glass industry is expected to become largest exporter in the region. Economic sanctions were another factor, which curtailed exports of container glass from the country in recent years . During the sanction period, container glass exports from the country suffered as exchange houses were used to transfer money back and forth, which caused long delays in payments due to increased bureaucracy. With the lift of the economic sanctions, the Iranian banking system became connected to the SWIFT system again in March 2016, making money transfers more transparent and easier than before.

Beverage demand

Iran is the second biggest retail value market for soft drinks in the Middle East, after Saudi Arabia, with value sales of US$2.8 billion in 2015. Juices dominate, primarily led by domestic manufacturers that include Alifard Co and Takdaneh Co, which have gained strong share in the country due to their low domestic production costs. Major container glass consuming category, carbonated beverages, which occupies second place in beverage industry are expected to grow steadily in coming years, leading to steady growth in consumption of container glass. After several years of hardship, the Iranian soft drink sector registered steady growth in

asianglass AG 17-2

2015. Iranian population purchase 4.97 billion liters of soft drinks in the calendar year, giving container glass producers a much needed boost. Financial crisis in Iran in 2012 has had a negative impact on soft drinks industry. The impact continued in 2013 and much of 2014. Carbonates drinks category in Iran is led by Coca-Cola and Pepsi Co, where their concentrates are imported and produced in local subsidiaries under license of Koshgovar Mashhad Company. Container glass industry is expected to benefit in the short and medium term from the expected growth in carbonates consumption. Other categories, such as bottled water and juices have a low level of glass bottle usage. This category is dominated by domestic manufacturers such as Zamzam Beverage Co and Alifard Company. Container glass usage may also increase in this category if more multinational manufacturers enter these categories. No matter whether itâ&#x20AC;&#x2122;s a coke, Pepsi, fruit juice, Islamic beer or dairy product, beverages are typically served in bottles and rarely in cartons. This factor has immensely helped container glass industry in Iran. Though, competition from PET is stiff and increasing its hold in many categories, but on a whole glass has benefited from low penetration of cartons/ tetra packs. Moreover, with the lifting of sanctions more multinational brands in beverage category are expected to enter the country, which will give container glass industry more consumers.

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ANALYSIS: Container glass

Container glass production, consumption and exports in Iran 2016

2015

2014

2013

2012

2011

2010

Container Glass Production

317,828

294,513

284,000

287,000

282,000

302,000

313,000

Growth in production

7.91 %

3.70 %

- 1.04 %

1.77 %

6.62 %

- 3.51 %

5.9 %

Domestic Demand

281,117

262,189

247,000

245,000

248,000

256,000

254,000

Growth in domestic demand

7.21 %

6.14 %

0. 81 %

- 1.20 %

- 3.12 %

0.78 %

4.8 %

Exports

59,283

53,218

57,000

54,000

47,000

49,000

53,000

Growth in exports

11.39 %

- 6.63 %

5.55 %

14.89 %

- 4.08 %

- 7.54 %

8.6 %

Food packaging

Second largest segment for container glass industry in Iran, packaged foods are likely to lead to a steady growth for container glass producers catering to this segment of the industry. Even under sanctions, Iran saw the highest retail value sales for packaged food in the Middle East, worth US$30.36 billion in 2015, with growth of 23% over the previous year. Packaged food sector is set to grow to $56.8 billion by 2019 as consumption of packaged foods is expected to increase as a result of urbanization, lifestyle changes and as well as demand for products from the West.

Pharmaceuticals & Cosmetics

Notwithstanding the economic sanctions, pharmaceutical segment has always meant steady demand for container glass producers in the country. “There is limited use of plastic packaging for suspension and syrup in Iranian pharmaceutical industry, so demand of container glass from this segment is quite stable, “ Razi Glass Group’s Saeed Sanati statement best sums up the situation and reason for steady demand of container glass from this segment. In order to further strengthen the pharmaceutical industry, Iran has been turning to other countries and foreign companies for investment. For example, several German delegations have visited Iran, with both countries declaring interest in boosting cooperation in the pharmaceutical industry. Iran and Russia are in talks to invest in the sector in Iran. Currently, Germany and Russia are the two highest pharmaceutical export destinations for Iran - together they receive over 75% of Iran’s exports. In addition to these countries, other countries and companies are planning to have pharma production unit in the country. Recently, Danish pharmaceutical company Novo Nordisk has announced plans to set up a manufacturing base in the country.

A new political day

Lifting of economic sanctions in 2016 will have short- and long-term impact on the Iranian container glass industry. The short term effects have even started to have an impact on country’s container glass industry as one of the dominant segment, packaged food and beverage industry has experienced an estimated growth of about 9 % in the first nine months of the Iranian economic year (21st March – 20th Dec 2016). New product development will grow leading to a boost in per capita consumption especially for sectors with a lower base. This means more stable brand performance and reasonable competition between domestic and multinational brands. New entrants and further expansion of the activities of existing suppliers will be a possible threat to local leading brands in big food and beverage sectors like dairy and juices, but this will also encourage key domestic brands to improve quality and packaging of their products to remain competitive. Further investment by multinationals food and beverage companies in the country in the form of potential joint ventures which will result in establishing factories and production plants in the country, should Iran and the West maintain a normal relationship in the imminent future. Domestic production of well-known multinational food and beverage brands in the country can seriously change the

asianglass AG 17-2

Hamadan Glass

Location - Qazvin Installed Capacity - 300 TPD Number of Furnaces - Two Markets - Domestic and export markets Others - With an installed capacity of 300 TPD of container glass from its two manufacturing units, Hamadan Glass is one of the oldest and largest container glass producer in Iran. Unit I of the plant includes a melting furnace with the capacity of 170 Tons and four production lines equipped with I.S. machines. The annual production of this plant is 40000 tons per annum. In 2004, modernization and upgrading was carried out at this furnace to enable it to produce light weight glass bottles. Second unit of Hamadan Glass was established in 1999 with an installed capacity of 130 TPD with three production lines.

Razi pharmaceutical Glass

Location - Tehran Installed Capacity - 110 TPD Number of Furnaces - One Markets - Domestic and Export markets Others - One of the two units of Razi Glass Group, Razi pharmaceutical glass has an installed capacity of 110 tons per day. Located in Tehran, the plant started commercial production of container glass in 1993. The company had initially started with a capacity of 50 TPD. In 2015, the company expanded its capacity to 110 TPD. The expansion was carried out to include light weight glass bottles in the company’s portfolio. Razi Pharmaceutical Glass is one of Iran’s leading manufacturers of pharmaceutical glass. Set up with an aim to serve both the national and international pharma glass demand, Razi Glass supplies to some of the best known pharmaceutical companies in Iran and the Middle East region.

Takestan Packaging Glass

Location - Qazvin Installed Capacity - 120 TPD Number of Furnaces - One Markets - Domestic and Export markets Others - Second unit of Razi Glass Group, Takestan Packaging Glass started commercial production of its Qazvin based plant in 2001 with an installed capacity of 120 tons per day. Takestan Glass produces glass bottles, jars and light weight glass bottles with NNPE technology and caters to food, beverage and cosmetic glass segments of container glass industry. Equipped with state of the art technology from leading technology suppliers such as Tiama, Pneumofore and Horn Glass, Takestan Glass has created a name for itself in regional container glass industry.

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ANALYSIS: Container glass

competitive environment and strongly challenge the current control of domestic brands. These developments will augur well for container glass industry as most of the multinational companies prefer glass packaging due to premium nature of glass packaging.

Retail channels

Container glass industry in Iran has suffered in past due to traditional retail environment with strong dominance of traditional grocery outlets which account for almost 90 percent of sales in food and beverage segments. Currently, Iranian retail industry is undergoing a transformation, which should augur well for container glass industry in the short, medium and long term. The process of conversion to modern channels, which started with the launch of Carrefour in 2008 has been very slow and one reason has been sanctions. With the removal of sanctions, rapid growth of Carrefour and entry of other modern retailing giants, container glass industry has benefited immensely. In coming years, container glass industry is expected to gain a larger share in food and beverage market due to the shifting landscape of retail industry in the country.

Major container glass producers Company

Location

Installed Capacity

Hamadan Glass

Qazvin

300 TPD

Shisheh Va Gaz ( Shoga)

Tehran

310 TPD

Mofid Pharmaceutical Glass

Tehran

290 TPD

Takestan

360 TPD

59,283

53,218

Tehran and Qazvin

220 TPD

Mina Glass

Tehran

160 TPD

Crystal Iran

Abhar, Qazvin

90 TPD

Alborz Industrial City, Qazvin

250 TPD

Nafis Glass Razi Glass Group (Razi Pharmaceutical Glass and Takestan Packaging Glass)

Daroo Shishe ( Sina Glass)

Major players

Catered by nine mid - sacle container glass producers, Iranian container glass manufacturing is steadily inching towards global standards on account of embracing state of the art technologies and processes. However, despite the steady progress made by the producers, total installed capacity and production has not been commensurate to a country with a population of 80 million. Absence of largest consuming segment, alcoholic beverages is the single largest reason behind the low per capita usage of ( per capita usage of 3.4 Kg for 2016) container glass in the country. This figure might look negligible in comparison to per capita glass usage in European countries, yet it is equal or more than the per capita container glass consumption in most of the Asian countries.

Shisheh Va Gaz

Located at Fath Road in Tehran on a five acre land, state owned Shisheh Va Gaz (Shoga Glass) is one of the oldest container glass producer in Iran. Equipped with 7 IS machines, the company has an installed capacity to produce 310 TPD of container glass for Iranian food and beverage industry. The company produces glass bottles and jars in clear, green and brown colors as per the customerâ&#x20AC;&#x2122;s requirements. The company has been engaged in container glass production since 1960.

Darou Shisheh ( Sina Glass)

Established in 1981, Darou Shisheh Company was the first local manufacturer of borosilicate type I pharmaceutical glass containers in order to fulfill the pharmaceutical industry demand for ampoules. During its long journey, the company has have managed to sustain a majority share of domestic pharmaceutical container glass market. Currently, the company operates 40 production lines with an annual production capacity of 900 million pieces of glass ampoules, vials and carpoules.

Mofid Pharmaceutical Glass

Location - Tehran Installed Capacity - 290 TPD Number of furnaces - Two Markets - Domestic and Export Markets Others - Mofid Pharmaceutical Glass commenced commercial operations in 1994 with a capacity of 50 TPD . Over the years, the company has expanded its product and production portfolio to include some of the largest name in pharmaceutical sector. Currently, Mofid Pharma Glass has an installed capacity of 290 TPD of container glass from two furnaces.

Nafis Glass

Location - Takestan Installed Capacity - 360 TPD Number of Furnaces - Two Markets - Domestic and Export Markets Others - Sister company of Mofid Pharmaceutical Glass, Nafis Glass is a new container glass producer in Iranian container glass industry. Set up in anticipation of increased demand of glass containers in the wake of removal of economic sanctions on Iran, the company has its state of the art manufacturing plant at Takestan. Nafis Glass commenced commercial production of container glass in February 2016 with an installed capacity of 360 TPD. The plant is designed to supply countryâ&#x20AC;&#x2122;s food & beverage industry.

Hamadan Glass Company

Established in 1975, Hamadan Glass Company commenced commercial production of container glass in 1982 in Hamadan province of the country. Set up with the objective of catering to container glass demand for domestic food & beverage industry of Iran and the Middle East region, the company claims to have more than 20 % share of domestic container glass market. Located on 40 acres of land on the 12th km of Hamadan-Tehran road, Hamadan Glass also exports glass containers to neighboring countries of Iraq, Azerbaijan and Turkmenistan.

Razi Glass Group

With a cumulative installed capacity of 220 TPD of container glass from its two manufacturing units- Razi Pharmaceutical Glass and Takestan Packaging Glass,

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ANALYSIS: Container glass

Razi Glass Group is among the leading container glass producers. In addition to domestic Iranian market, Razi Glass Group exports glass bottles to its clients based in Iraq, Turkey, Armenia, Azerbaijan, Sudan, Jordan and Kuwait. Razi pharmaceutical Glass plant is located in Tehran, while its other subsidiary Takestan Packaging Glass’s manufacturing facility is located in Qazvin. In 2015, Razi Glass Group carried out expansion and modernization at its Tehran based plant. The expansion was carried out to enable the company to produce light weight glass bottles using NNPB process. This expansion increased the installed capacity of Razi Pharmaceutical Glass from 12,000 TPA to 27,000 TPA. According to the company, “ The use of state of the art technologies in glass production has given our company an edge in the Iranian market. Driving down the costs of production, including labor and energy, has given our company an edge in the domestic and international market. These initiaves have enabled us to offer competitively priced high quality container glass products to end users.” “ Later this year, Razi Glass Group is expected to make an announcement of expanding its production capacity at its Qazvin based, Takestan Packaging Glass. Capacity at this location will be increased from current 40,000 TPA to 110,000 TPA”, a key execustive from the company told Asian Glass on anonymity.

Container glass consumption by Province Population

Contribution to national GDP

Container Glass usage (% of National Consumption)

13.5 %

24.9 %

22.7 %

Khorasan

5.6 %

4.9 %

8.7 %

Isfahan

4.6 %

6.4 %

7.9 %

Fars

4.4 %

4.9 %

Khuzestan

4.3 %

14.5 %

6.4 %

3.6 %

3.8 %

4.2 %

2.9 %

1.9 %

3.6 %

Mazandaran

2.9 %

3.4 %

3.8 %

Kerman

2.7 %

2.4 %

3.1 %

Consisiting of two companies, Mofid Pharmaceutical Glass and Nafis Glass, Mofid Glass Group is the largest container glass production company with a total installed capacity of 650 TPD of container glass. Mofid Pharmaceutical Glass, which commenced operations in 1994 has emerged as one of the well known container glass producers in the region. Set up as a small container glass manufacturing unit with a meager capacity of 50 TPD of pharmaceutical glass, Mofid Pharma Glass currently has an installed capacity of 290 TPD of container glass.

Alborz

2.4 %

3.8 %

3.2 %

Gilan

2.4 %

2.2 %

3.4 %

Sistan & Baluchistan

2.4 %

1.0 %

1.3 %

Kermanshah

1.9 %

1.5 %

2.0 %

Hamadan

1.8 %

1.5 %

2.3 %

Nafis Glass

Lorestan

1.8 %

1.2 %

2.2 %

Golestan

1.6 %

1.4 %

1.9 %

Kurdistan

1.6 %

1.0 %

1.8 %

Hormozgan

1.4 %

2.1 %

2.0 %

Markazi

1.4 %

2.2 %

1.9 %

Ardabil

1.3 %

1.0 %

1.5 %

Qazvin

1.2 %

1.3 %

1.6 %

Qom

1.1 %

1.0 %

1.3 %

Bushehr

1.0 %

3.1 %

1.9 %

Yazd

1.0 %

1.1 %

1.4 %

Zanjan

1.0 %

0.9 %

Bakhtiari

0.9 %

0.6 %

0.7 %

Khorasan, North

0.8 %

0.6 %

0.7 %

Ahmad

0.7 %

3.9 %

0.9 %

Khorasan, South

0.6 %

0.4 %

0.5 %

Semnan

0.6 %

0.8 %

0.7 %

llam

0.5 %

0.7 %

0.5 %

Mofid Glass Group

Nafis Glass, sister company of Mofid Glass, which commenced operations at the start of 2016 operates two furnaces for pharmaceutical glass containers. Set up at Takestan, the company has provision to install another furnace of similar capacity. In fact, Nafis Glass has made adequate provisions for installing another furnace during the construction of the first furnace. The newly installed furnace has an installed capacity of 360 TPD of container glass. Set up to cater to container glass demand of food & beverage and pharmaceutical segments of container glass industry, Nafis Glass is also looking to export a significant part of total production to neighboring countries.

Shisheh Va Gaz ( Shoga)

Location - Tehran Installed Capacity - 310 TPD Number of Furnaces - Three Markets - Domestic and Export Markets Others - State owned Shisheh Va Gaz is one of the oldest container glass producer in Iran. With an installed capacity of 310 TPD from its Tehran based plant, Shoga is counted among the largest container glass producers in the extended Middle East region. Besides supplying to a number of state owned food, beverages and pharmaceutical companies, Shoga also boasts of a number of clients in private sector. Based at Shamsabad industrial township of Tehran, Shoga commenced container glass production with a small 40 tons per day furnace, which was increased to 70 TPD in 1976. In 1996, the company added another furnace with a capacity of 90 TPD, taking the overall installed capacity to 160 TPD. The company went for another expansion in 2013, when it installed a new furnace with an installed capacity of 150 TPD.

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Province Tehran

Azerbaijan, East Azerbaijan, West

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ANALYSIS: Pakistan

Pakistan: an in focus uncorking potential in a major market

AG looks into how the continued potential of the domestic market continues to remain untapped despite the best efforts of some of the country’s producers and processors.

wide geographical spread, a population of about 186 million people, which is growing at one of the healthiest rate ( 1.6 %) in the region, growing economy and rising disposable incomes of a vast section of population are indeed heady ingredients for a vibrant glass industry. Throw in the current low per capita usage of the glass in both the major segments- container and float glass, you get one of the best destinations of future growth of glass industry in the region. But, sadly, to a large extent Pakistani glass industry has failed to realize the true potential of the huge domestic market as well as the opportunity provided by a substantial Afghanistan market, which is entirely dependent on import of glass products from its neighbors. Installed capacity in Pakistani container glass industry has remained almost ( barring a 24 TPD pharma tubing plant by Ghani Glass ) static for more than four years in a row. There have been some capacity additions, but these were as a result of modernization or production rearrangements of older furnaces. A new plant in pharma sector in next two months is expected to make first substantial capacity addition in last four and half years. Flat glass sector continues to be dominated by existing float glass producersGhani Glass and Tariq Float Glass companies. The latter has been able to capture about 50 % of the market, on the back of aggressive pricing. Imports of float glass from China , which used to form a significant part of total consumption has come down significantly. In fact, with the setting up Tariq Float Glass’s project in 2013, Pakistan has become an exporter of float glass to many countries in the region. American agency, USAID in association with Khyber Pakhtunkhwa Board of Investment and Trade had got carried out an extensive pre-feasibility study in late 2014 to set up a float glass plant in Pakistan in Masehra, Karak or D.I.Khan based on the silica sand deposits in these areas. Khyber Pakhtunkhwa Board of Investment and Trade (KPBOIT) is established for the promotion of trade and investment activities in Khyber Pakhtunkhwa (KPK). However, there has been no progress on this project.

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On the production side, the availability of natural gas and requisite supply to glass producers have been the most challenging issues for the sector. Leading container glass producer, Balochistan Glass had to shut down two of its furnaces alternatively due to non availability of requisite amount of natural gas. Macroeconomic indicators of Pakistan, which remained positive in 2016 have provided a boost to country’s glass industry. Despite the negative growth of Agriculture Sector, the National Economy maintained a trend of an overall growth. The price stability, healthy tax collection, reduction of fiscal deficit, worker remittances, Foreign Exchange reserves, controlled oil prices, low single digit inflation are expected to give glass industry a steady growth rate in coming years.

Container glass

Comprising of four container glass producer, Pakistani container glass industry has made modest growth in last few years. Slow economic growth and its effect on food and beverage segments have had its impact on the container glass consumption. Competition from other forms of packaging, especially PET has been the single largest reason for the tepid growth of the container glass industry. Less demand from alcoholic beverage segment ( there is only one brewery in country) is the single largest reason of slow growth in Pakistan’s container glass industry. However, on the positive side, like most of their counterparts in other Asian countries Pakistani container glass producers have started to realize the importance of higher quality products. Balochistan, Ghani and Murree, all of the leading producers have carried out modernization exercise at their furnaces in last two years, in order to produce higher quality glass bottles.

Balochistan Glass

One of the largest container glass producers in Pakistan, Balochistan Glass operates three container glass manufacturing units with a total installed

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ANALYSIS: Pakistan

industry

capacity of 133,000 TPA of glass bottles. The company produces narrow and wide neck glass containers for food, beverages, juices and pharmaceuticals industries in flint, green & amber colours. Company’s oldest unit is located at a place called, Hub in Balochistan region, approximately 35 km from Karachi. Balchostan Glass’s two other container glass manufacturing units came through acquisition of existing container glass manufacturing units of Ravi Glass and Rachna Glass. Balochistan Glass made these acquisitions in year 2002. Both of these units are located on the Lahore Sheikhapura Road. Individually, installed capacities of these units are 36,000 tons, 75,000 tons and 22000 tons per annum respectively. Each of the above three manufacturing units has its own well-equipped mould Shop which not only carries out mould repairs but are also produces many of the moulds needed for container glass production. Closure of Unit III ( for modernization and rationalization of capacity) and

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partial closure of Unit -I during in 2016 have resulted in operational losses for the company. Unavailability of smooth supply of natural gas, like in past has remained a big challenge for the company. BGL’s management has been in continuous negotiations with government departments for provision of requisite gas supply. BGL’s first unit being located near port city Karachi , enables it to cater to export market as well as domestic demand of southern region, whereas the other two units supplies to the northern market. The third unit of the company is entirely dedicated to pharmaceutical container production. To ensure steady supply of silica sand, Balochistan Glass also operates a silica sand beneficiation plant. This 500 tons per day capacity plant washes, dries and grade the silica sand for different applications. Commissioned in 2009, the silica sand plant meets the captive demand silica sand for all the three units of Balochistan Glass.

AG 17-2 asianglass

ANALYSIS: Pakistan

New investment

Balochistan Glass has invested in a new pharma glass production unit. The new company, Paidar Hong Glass (Pvt) Limited (PHGL) is a joint venture project with a Chinese Company in which Balochistan Glass has a 50 % stake. The new company, PHGL was incorporated in September 2016. The project is expected to start commercial production in the second quarter of the current year. Located at Lahore Sheikhupura road adjacent to Balochisan Glass Limited, Paidar Hong Glass has imported complete manufacturing facility for the production of high-quality USP Type-1 neutral glass tubing, vial and ampoule from Chinese company Globallink Glass Technology and Equipment. The new unit will produce USP Type-1 neutral glass tubing, which has excellent chemical resistance and great mechanical strength. PHGL will also produce borosilicate USP Type -I (flint & amber glass) tubing to cater to the demand of pharmaceutical companies in Pakistan and other neighbouring countries.

THE AVAILABILITY OF NATURAL GAS AND REQUISITE SUPPLY TO GLASS PRODUCERS HAVE BEEN THE MOST CHALLENGING ISSUES FOR GLASS PRODUCERS

Ghani Glass

Revenue of top three glass producers in Pakistan With an installed capacity of 1100 TPD in both- flat and container segments, Ghani Glass is the largest glass producer in Pakistan. Company’s net sales of Pakistani Company 2011 2012 2013 2014 2015 2016 Rs. 11.8 billion makes it largest in Pakistan and one of the top five largest glass Ghani Glass 6,869 8,620 10,362 10,200 11,260 11,785 companies in the sub-continent in revenue terms. Float glass revenue comprised 51.23 % of the total amount, while container glass accounted for the rest. Tariq Glass 2,782 4,451 3,889 7,756 8,040 8,076 The Company also has interests in automobiles manufacturing, marketing, and Balochistan Glass 1,099 1,961 2,714 2,204 1,605 1,494 mining for silica sand, coal and rock salt. Ghani Glass operates two container glass plants. The first one is located All units in Million Pakistani Rs at Haripur in Khyber Pukhtunkhwa region of the country. Company’s second container glass production units is locate at Landhi Industrial area in Karachi. With Container glass production and demand in Pakistan an installed capacity of 550 TPD of container glass from its two units, Ghani Glass 2012 2013 2014 2015 2016 is among the two top container glass producers in the country. Container Glass Last year , Ghani Glass commissioned a new amber pharma glass furnace at its 242,712 249,508 258,989 270,902 287,157 Production Landhi plant, Karachi. Before commencement of this plant almost 80% of tubing Domestic requirements of the country was met through imports from different countries 234,199 240,105 249,283 259,338 280,716 Consumption like China, Indonesia, Germany and Japan. The company is also working towards setting up another float glass line with production capacity of 450 tons per day. Exports 16,743 18,825 18,267 19,194 19,668 Although, company declined to comment on the timeline for this project. Imports 8,230 9,422 8,561 7,630 13,227 In 2016, Ghani Glass produced 153,470 tons of float glass and 133,071 tons of container glass, an increase of 1.89 % and 2.84 % in the respective categories All units in tons over year 2015. Sales of container glass to beverage industry saw Container glass producers in Pakistan an increase that was more than double the company’s Installed growth rate: sales were up 91.9% in 2016, from 2.07 Company Location Remarks Capacity billion Pakistan Rupees to 3.97 billion Pakistan Rupees. However, sales of pharmaceutical glass fell by 50.9% to Balochistan Glass 1 Hub, Balochistan 36,000 TPA 1.78 billion Pakistan Rupees. Despite, an increase in its float and container glass Acquired from production in 2016, Ghani Glass suffered a significant Balochistan Glass II Sheikhupura 75,000 TPA Ravi Glass drop in exports of float and container glass in the year as compared to 2015. In 2016, the company’s export Kot Abdul Malik, Acquired from revenues at Rs 312 million were less than half of export Balochistan Glass III 22,000 TPA lahore Rachna Glass revenues of Rs. 749 million achieved in 2015. India remained the company’s largest export destination, followed by Afghanistan.

Murree Glass

Many in the West would be surprised to know that a majority Muslim country like Pakistan has a brewery. Murree Brewery, the only brewery in Pakistan is one of the oldest companies in the country and sub-continent. Established in 1861 in the then undivided India, the brewery was one of Asia’s first beer breweries, when it commenced operations. A subsidiary of Murree Brewery, Murree Glass

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Paidar Hong Glass

Sheikhupura

Upcoming plant

30 TPD

Ghani Glass Limited Plant 1

Haripur ( Khyber Pukhtunkhwa)

250 TPD

Ghani Glass Limited Plant II

Landhi Industrial Area, Karachi

300 TPD

Murree Glass

Hattar, Kheybar Pukhtunkhwa

A division of Murree Brewery

110 TPD

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ANALYSIS: Pakistan

has an installed capacity of 110 TPD. Established in 1974 to meet the captive requirements of the brewery, Murree Glass is a small but one of the highest quality producers of container glass in Pakistan. Initially catering only to beer and food bottles demand of Murree Group, Murree Glass started to supply a small part of production to other food and beverage companies after a capacity expansion exercise in 2010. According to Isphanyar Bhandara of Murree Glass, “About 80% to 90% of the bottles we produce are used by our own beverages and by the grace of God, our demand has substantially increased. We have purchased latest machine from Italy for the manufacturing of glass to meet our own demand of glass bottles. The left over 10% to 15% bottles are supplied to the third parties.”

Float and flat

Despite the mammoth size of the country and a sizable population of about 186 million, Pakistan has only two float glass plants. One, who is not quite familiar with Pakistani glass industry would be surprised to know that country’s first float glass plant was set up in 2005. Prior to this float plant, all the float demand was met via exports or through inferior quality sheet glass. Even this plant remained the only float glass plant till 2012, when Ghani Glass set up another float glass plant with a capacity of 550 TPD. In 2013, Tariq Glass, which till then was operating in tableware glass production, set up a float glass plant with an installed capacity of 550 TPD. Prior to Tariq Float Glass project, float glass market in Pakistan was single handedly ruled by Ghani Glass, which enjoyed a large market share of 82%, rest being imported from neighboring countries such as China, India and Iran. Currently, Tariq Glass has about 52 % share of the domestic float glass market, rest being accounted for by other float glass producer, Ghani Glass and imports. Tariq Glass is also the largest exporter of glass from Pakistan. In 2016, about 6.75 % of total revenue ( float as well as tableware products) of Tariq Glass came through exports .

Ghani Float Glass

Ghani Glass ventured into float glass production by setting up country’s first float glass plant in 2005. The 350 TPD plant near Lahore was the sole supplier of Pakistan’s float glass requirement till 2012, when Ghani Glass added another float glass line in the vicinity of first line. With a capacity of 550 TPD, this float glass plant started commercial production in May 2012. Later in 2013, Ghani Glass stopped production at its first plant. Currently, the company operates only the 550 TPD plant. In 2016, Ghani’s float glass division produced 153,470 tons of glass, i.e. 420 TPD ( capacity utilization of 76 %), an increase of 2847 tons as compared to year 2015. During 2015, the company produced 150,623 tons of float glass with a capacity utilization of about 75 %.

Tariq Float Glass

Second largest glass company in Pakistan in terms of revenue, Tariq Glass Industries Ltd. operates in two segments of glass industry. Originally, the company was only into tableware production, but in 2013 it diversified into float glass production. In 2013, Tariq Glass diversified into float glass production by establishing a float glass plant with an installed capacity of 550 TPD. Set up in technical collaboration from leading Chinese technology provider and glass producer, Yaohua Glass. Tariq Float Glass produces float glass in the thicknesses from 2mm to 13mm in clear and 5 mm tinted and reflective glasses through an online CVD coating machine. The company also has facility for production and processing of sand blasted glass and aluminum coated mirrors.

Tableware glass

Tariq Glass is the largest glass tableware producer in the country in the organized segment. The company has technical collaboration with leading Japanese glass technology and glass producer, Toyo Glass. Tariq’s tableware brands such as Toyo Nasic, Omroc and Nova are popular not alone in Pakistan but even in overseas markets.

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ANALYSIS: Pakistan

With an installed capacity of about 280 tons ( two furnaces of 140 TPD each) per day of tableware glass, Tariq Glass is the largest tableware producer of Pakistan. The company produces glass tableware products using single and double gob press machines, press and blow and stretch machines. Tariq Glass has fully automated printing machines, with capability of printing six colours simultaneously, including the premium gold and silver. A couple of years back, Tariq Glass undertook a capacity expansion on one of its tableware furnace, enhancing its production capacity from 110 TPD to 140 TPD. For this company’s furnaces was shut for a period of 8 months, reducing company’s production by 30% to 37,111 MT. As a part of the company’s value addition strategy for its tableware products the jug making machine and toughening lehr for manufacturing of light weight tempered plates and bowls useable in microwave ovens was imported and put into commercial production. Production stoppage at one of the furnaces at Tariq Glass allowed entry of imported Chinese tableware products to fulfill a large part of tableware demand in Pakistan, and reducing Tariq Glass’s market share. Presence of imported Chinese products still limit Tariq Glass’s pricing power in the segment. According to the glass tableware import/ export data from State Bank of Pakistan, Tableware glass imports are on a continuous rise in Pakistan since second half of 2014. Even, after resumption of production at both the furnaces of Tariq Glass, the rise has continued till December ( Asian Glass could access the import data till December 2016), indicating that Chinese producers have got strong foothold in the market and are not letting the opportunity go, even though the Tariq Glass has resumed its regular operations. Chinese exporters have slashed the prices of tableware products to retain/ increase their market share.

Natural gas issues

Availability of natural gas has been one of the most pressing issues for Pakistani glass producers. Gas shortages have often resulted in loss of production, inferior quality of products and rise in production cost due to use of alternative arrangements for fuel supply. Pakistani Glass industry association and major producers have urged to government on a number of occasions to streamline the gas availability, but the results have not been satisfactory till date. To a large extent, Glass producers have made alternate arrangements for fuel supply at their manufacturing units. Last year, in order to have uninterrupted and cheaper power supply for manufacturing activities at factory premises, Tariq Glass was forced to invest in captive generation capacity. The company has imported 3 units of generator sets with a total generation capacity of 10.5 MW. In an unrelated development, Pakistan’s Economic Coordination Committee (ECC) of the cabinet in late 2016 approved a nearly 33 percent cut in prices of natural gas for the industrial sector, including glass industry. That translates to reduction of gas price for glass industry from Rs 600 to Rs 400/MMBTU. This step is expected to give major respite to glass producers. But, government must first ensure the regular and requiste gas supply to these units to make the Pakistani producers cost and quality competitive in the region. Flat Glass production and demand in Pakistan 2012

2013

Float Glass Production

115,319

Domestic Consumption

147,285

182,611

28,738

Exports Imports

31,966

2014

2015

2016

275,453

281,156

Float Glass Producers in Pakistan

220,133

227,477

252,863

Company

64,634

53,189

31,478

199,153* 278,074**

12,196

6,693

5,213

3,185

All units in Tons * Sudden spurt in production is due to start of two float glass plants in 2012 and 2013 ** Quantum jump in production is as a result of Tariq float glass’s plant achieving production stabilization

asianglass AG 17-2

Location

Remarks

Installed Capacity

Ghani Float Glass

Commenced Sheikhupura production in 2012

550 TPD

Tariq Float Glass

Commenced Sheikhupura production in Road, Lahore 2013

550 TPD

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ANALYSIS: Glazing

Winds of change

impact glazing for weather extremes As Cyclone Debbie smashed into Australia in March, and weather patterns become increasingly extreme and unpredictable, there has never been a greater reminder about the importance of developing architectural glass solutions to withstand these pressures. Valerie L. Block, Robin C. Czyzewicz, David M. Rinehart of Kuraray America, Inc. discuss developments…

uilding code requirements for wind-borne debris protection have been in existence since the mid- 1990s, and as a result, many glazing systems have been tested and certified to these performance requirements. The performance requirements for tornado mitigation are less familiar, but interest has grown over the years in the development of glazing systems that offer impact protection in tornado-prone areas. While 77% of the tornadoes in the United States are a categorized as an EF1 or below on the Enhanced Fujita scale, meaning sustained winds below 110MPH, it is important to consider the effects of more powerful tornadoes. Here we focus on current standards and building codes that specify performance requirements, as well as the results of a testing program conducted on various glazing constructions using ionoplast interlayer following testing guidelines as determined by ASTM E1886. When tested to the ASTM standard, wooden debris “missiles” are propelled to travel at varying speeds simulating different levels of tornadic activity.

Code issues

The adoption of building code requirements and standards related to windborne debris protection in the United States have resulted in widespread use of impact glazing systems over a 20-year period, starting in 1992 after Hurricane Andrew. Seventeen coastal states are affected by these building code requirements, including Florida, Georgia, North and South Carolina, Virginia, Maryland, Delaware, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Mississippi, Alabama, Louisiana, Texas, and Hawaii. Noticeably absent are the states affected by tornadoes. While voluntary building code requirements exist, the states most affected by tornadoes have not yet adopted these provisions. Since the wind speeds associated with tornadoes are considerably higher than those of hurricanes, the test requirements for wind-borne debris protection are more severe. The hurricane impact systems

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that have been developed and tested for hurricanes will not pass the impact requirements for tornadoes. Although glazing systems designed for tornado protection are few and far between, the desire to offer a higher level of protection in critical occupancies, such as hospitals, schools, and community buildings, has motivated building owners to ask for higher-performing systems.

Classifying Tornadoes

Tornadoes have been spotted in all continents except Antarctica. Many countries in Europe have experienced tornadoes, as well as Australia, Japan, South Africa, Brazil, and Bangladesh. Over 1200 tornadoes are reported each year in the United States, primarily in what is known as “tornado alley— northwest Texas across Oklahoma and through northeast Kansas. Dr. Tetsuya Theodore Fujita introduced the first tornado classification system in 1971. He called his system the Fujita Scale (F-Scale) and it was divided into six categories. In 2007, the F-Scale was replaced by the Enhanced Fujita Scale (EF-Scale) for use in the United States. Canada adopted the EFScale in 2013. The EF-Scale wind speeds are based on degrees of damage, from minor damage to total destruction. 3-second gust (mph)

EF-Scale Number

3-second gust (mph)

45-78

EF0

65-85

79-117

EF1

86-110

118-161

EF2

111-135

162-209

EF3

136-165

210-261

EF4

166-200

262-317

EF 5

Over 200

F-Scale Number

Source: National Weather Service Figure 1

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ANALYSIS: Glazing

The TORRO Scale (T-Scale) is used primarily in the United Kingdom to measure tornado intensity from T0 to T11. Based on wind speed, this scale was developed by Terence Meaden of the Tornado and Storm Research Organization (TORRO) as an extension of the Beaufort Scale.

Missile Level A C

Federal Requirements

The Federal Emergency Management Agency (FEMA) 361 standard, Design & Construction Guidance for Community Shelters, applies to community shelters (also called “safe rooms”). A community shelter is designed and constructed to protect a large number of people from a natural hazard event. These rooms may be separate buildings or internal spaces, where the community safe room or area is designed to be structurally independent of the building. Schools, hospitals, and other critical facilities occupied by large numbers of people will often be the setting for a community safe room. Because of the critical nature for life safety with regard to shelters FEMA 361 only cites requirements for an EF5 tornado debris protection.

Building Code Requirements

The ICC/NSSA 500 Standard for the Design and Construction of Storm Shelters has been available for adoption and use by any jurisdiction in the United States since 2008. This code applies to the design, construction, installation, and inspection of storm shelters in hurricane- or tornado-prone areas. Alabama is the only state to have adopted this code as a vehicle to provide school storm shelters. The 2015 IBC addresses Storm Shelters in Section 423. Storm shelters are required in areas where the shelter design wind speed for tornadoes is 250 mph (per ICC500) and in most Group E occupancies with an aggregate occupant load of 50 or more people. Testing at this wind speed calls for a 6804 g (15-lb) 2 x 4 in. impact at 161 kph (100 mph) or 45 m/s (147 f/s).

Standards for Testing Impact Systems

ASTM E1996 requirements for hurricane impact systems and missile levels are categorized below: Level of Protection

Enhanced Protection

Assembly elevation

(Essential Facilities)

>9.1 m (30 ft)

< 9.1 m (30 ft)

>9.1 m (30 ft)

Wind Zone 1

Wind Zone 2

Wind Zone 3

Wind Zone 4

Basic Protection

Source: ASTM E1996 Figure 2

Categories for protection include enhanced and basic protection, further divided into the area closest to ground level (Missiles C, D, or E below) and that portion greater than 9.1 meters in height (Missile A below). Most commercial glazing systems are tested for Basic Protection; however, there are buildings or Essential Facilities with glazing systems that must comply with the Enhanced Protection impact requirements of level “E” missiles. According to FEMA 361, the standard missile used to determine impact resistance for all wind conditions is a 6804 g (15 lb) wood 2 x 4, typically 3.6 m (12 feet) long. The missile is propelled at 45 m/s (147 f/s). A “Pass” means that the missile did not perforate the glazing, the glazing remained attached to its frame, and glass fragments remained within the glazing unit. Overall, the FEMA testing is considerably more stringent than the Missile Level E requirements found in ASTM E1996.

asianglass AG 17-2

D E

Missile

Missile Speed

2 g (31 grains) steel ball

39.62 m/s (130 f/s)

2050 g (4.5 lb) 2 x 4 in. 1.2 m (4 ft) lumber 4100 g (9 lb) 2 x 4 in. 2.4 m (8 ft) lumber 4100 g (9 lb) 2 x 4 in. 2.4 m (8 ft) lumber

12.19 m/s (40 f/s) 15.25 m/s (50 f/s) 24.38 m/s (80 f/s)

Source: ASTM E1996 Figure 3

The American Architectural Manufacturers Association released its AAMA 512 Voluntary Specification for Tornado Hazard Mitigating Fenestration Products in 2011. This standard enables window manufacturers to evaluate the impact, pressure cycling, and water penetration (hurricane areas only) of their products.

Test Program

In 2014, Kuraray sponsored a test program to assess the performance of laminated glass installed in insulating glass units. The goal was to test laminates according to EF-3 requirements since 95% of all the tornadoes that occur in North America fall in this category or less. The first series of testing was completed on a heavy laminate construction. The laminate not only passed the first impact, but remained unscathed, and subsequently fractured upon impacting in the corner. However, when the test specimen was first impacted in a corner then center of lite, the glazing infill was not able to resist the second impact. These first series of test were carried out using a missile speed of 45 meters/sec. A second series of tests were performed about a year later, and the glass make-ups along with the resultant performances are shown below: The third round of tests was conducted with three fenestration systems that were glazed with the glass make-up described above that passed both the EF3 impact requirements. The primary purpose of this third round of testing was to analyze what influence the system design may have had on the performance of the glazing infill. The systems were a dry-glazed pressure plate curtain wall system, a fixed window system with a removal glass stop to the interior, wet glazed, and a four-side structural glazed curtain wall. The glass make up was an insulating glass unit made with 18mm laminated (6.84mm ionoplast) on the outboard and 14mm laminated (4.56mm ionoplast) on the inboard. The dry-glazed pressure plate curtain wall system failed due to edge pull out as a result of the corner impact; it must be noted that this particular system had about 12mm of glass edge engagement into the curtain wall framing. The window unit failed catastrophically when the interior glass stop disengaged and allowed breaching of the building envelope. However, the four-side structural glazed curtain wall system passed the impacts with ease, but experienced spalling of the glass to the interior. One of the test specimens had a PET film applied to the inboard laminate, but this did not prevent the occurrence of spall. It should be noted during this series of testing the primary goal was to prevent the missile from penetrating the glazing infill; glass spall control was not the primary testing goal. It is also interesting to note that an applied film with a pressure sensitive adhesive does not appear to provide enough movement differential to allow the deflection of the interior glass plane upon impact and control spall. It was fracturing of the applied PET film that allowed uncontrolled glass spall on the test specimen that had the film installed on the protected surface. Future tests will examine the use of a thicker inboard glass ply to reduce breakage and the application of a PVB/PET composite on the onboard to help eliminate spall. It is clear that the ability of the fenestration system to hold the glass in place is a major factor in resisting the missile impact.

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ANALYSIS: Glazing

Laminated Construction

Number of impacts

Missile Size

Velocity

Results

6mm HS, 1.52mm ionoplast 6mm HS, 1.52mm ionoplast 6mm HS, 4.56mm ionoplast 3mm Tempered

6.8 kg

161 km

Passed single impact

Laminated Construction

Number of impacts

Missile Size

Velocity

Results

6mm HS, 12mm air space 3mm HS, 9.12mm ionoplast 3mm HS

6.8 kg

161 km

6mm HS, 4.56mm ionoplast 6mm HS, 12mm air space 6mm HS, 4.56mm ionoplast 6mm HS

6.8 kg

137 km/hour

Failed impact

6mm HS, 2.28mm ionoplast 6mm HS, 12mm air space 6mm HS, 6.84mm ionoplast 6mm HS

6.8 kg

137 km/hour

Failed impact

6mm HS, 2.28mm ionoplast 6mm HS, 12mm air space 3mm HS, 6.84mm ionoplast 3mm HS

6.8 kg

137 km/hour

Failed impact

6mm HS, 6.84mm ionoplast 6mm HS, 12mm air space 6mm HS, 4.56mm ionoplast 6mm HS

6.8 kg

137 km/hour

Figure 4: Test Series 1

Passed single impact Spall

Passed both impacts Spall

Figure 6 Test Series 2

Ionoplast Interlayers

with a larger wood timber traveling at higher Ionoplast interlayers were originally developed twenty speeds has resulted in heavier, laminated glass years ago for impact resistant glazing intended for constructions. A stiff ionoplast interlayer has been use in Florida. These interlayer products are up to shown to be effective in mitigating the impact of 100 times stiffer and five times more tear resistant the larger wood timber. Additional testing will be than standard PVB. Both of these properties make required to eliminate spall after impact. the interlayer ideal for severe windstorm protection. The increased stiffness of the interlayer results References in a stiffer overall finished laminate. Through [1] AAMA, AAMA 512-11, Voluntary Specification for effective thickness calculations, one can show that Tornado Hazard Mitigating Fenestration Products, with ionoplast interlayers, the effective thickness is can be ordered at http://pubstore.aamanet.org/ much closer to the total thickness of the laminate. pubstore/ProductResults.asp?cat=0&src=512 This additional stiffness adds to the laminates [2] ASTM International, ASTM E1886-13a, Standard capability to resist the initial impact of the debris. Test Method for Performance of Exterior Windows, Once the laminate has been impacted, and the Curtain Walls, Doors, and impact Protective glass has broken, the next concern surrounds the Systems Impacted by Missile(s) and Exposed to tearing of the interlayer under pressure cycling. As Cyclic Pressure Differentials, can be ordered from the laminate is cycled from positive to negative http://www.astm.org/Standards/E1886.htm Figure 5 Missile penetration glazing during pressure, and back, small tears in the interlayer can first round of tests. [3] ASTM International, ASTM E1996-14a, Standard expand into much larger tears, allowing debris to Specification for Performance of Exterior Windows, enter the structure. Due to the high shear modulus Curtain Walls, Doors, and Impact Protective and tear resistance of ionoplast interlayer, it is much harder for cracks Systems Impacted by Wind-borne Debris in Hurricanes, can be ordered to grow under pressure cycling, lowering the probability of failure in from http://www.astm.org/Standards/E1996.htm this loading condition. [4] Condon, Pat and Valerie Block, â&#x20AC;&#x153;Standing up to Tornadoes,â&#x20AC;? US Glass, Metal & Glazing, July 2011. Conclusions [5] FEMA, Design and Construction Guidance for Community Shelters, Building code requirements for wind-borne debris protection in July 2000, http://www.rhinovault.com/fema361.htm hurricane-prone areas have resulted in the development and use [6] International Code Council, IBC 2015: International Building of impact systems that protect both occupants and buildings from Code, can be ordered from http://shop.iccsafe.org/2015-internationalstorm-related damage. ASTM standards for testing systems guide building-coder.html manufacturers and serve as the basis for certification systems. [7] International Code Council, ICC 500-2014: ICC/NSSA Standard for Specifications for projects in tornado-prone areas often reference these the Design and Construction of Storm Shelters, can be ordered from standards, however, the FEMA 361 standard requires testing to a higher http://shop.iccsafe.org/icc-500-2014-icc-nssa-standard-for-thelevel of performance and will result in different system designs. Testing design-and-construction-of-storm-shelters-42931.html

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RT RE PO AL EC I

China the great polluter China has publicly named more than 20 enterprises it says broke environmental rules during Januaryâ&#x20AC;&#x2122;s outbreak of hazardous smog in the country's north, its latest attempt to bring lawbreaking firms to account by shaming them. The Ministry of Environmental Protection (MEP) accused steel and paper mills, cement plants, power generators and chemical producers of a range of offences, including ignoring output suspensions, "maliciously" evading government inspections and falsifying production data. Beijing's latest public shaming campaign - in which strongly-worded ministry reprimands are disseminated by local TV and newspapers - is its most overt attempt to bring polluters to account by exposing their infringements to wider community scrutiny, one part of the government's broader "war on pollution" launched in 2014. But with employment still a priority and penalties too weak, this tactic - used in the past, albeit in a more low-key manner - has done little to discourage firms from evading or ignoring emergency measures imposed in 24 northern cities put on smog "red alert" this week. "Naming and shaming is meant to deter firms from environmental violations," said Alex Wang, an expert in Chinese environmental law at UCLA. "But where the economics don't work out for firms, and in places where non-compliance is common, (the tactic) won't have much of an effect." This year, the environment ministry has turned its fire on local governments for lapses in enforcement, singling out cities like Linfen in Shanxi province. It said last month that 487 officials in smog-hit Hebei province, which surrounds Beijing, would be punished for environmental failings. Hebei, home to seven of China's 10 most polluted cities last year, set up a "media exposure platform" in October and promised to publish cases

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of serious violations at least twice a month. While the transparency push has made it harder for firms to conceal their transgressions, an investigation by the MEP this week showed the province remains one of the country's worst black spots for rule-breaking. The investigation, published on Thursday, revealed six Hebei steelmakers failed to comply

restarting sintering facilities as soon as its inspectors had left the site. An official with Hebei Xinda also said he was unaware of the situation when contacted by Reuters on Thursday. Three firms named by the MEP earlier this week - Shandong Yuhuang Chemical, Heze Dashu Biological Engineering and Mancheng Success Paper Industry - told Reuters they had

"Naming and shaming is meant to deter firms from environmental violations"

with a Dec. 18 order to suspend all sintering operations. It identified the offenders as Hebei Rongxin Steel, Qianan Zhayi Steel, Tangshan Stainless Steel, Tangshan Xinglong Steel and Tangshan Ganglu Steel. Of the firms, only Tangshan Ganglu could be reached for comment on Thursday, but an official said he had no information about the matter. The ministry also accused three more provincial steel firms - including Hebei Xinda Iron and Steel - of "maliciously"

subsequently complied with the orders to suspend production, but they would not say whether they would suffer any further punishment. A logistics subsidiary of oil giant PetroChina, based in Hebei's Zhuozhou, was accused of exceeding special emissions restrictions imposed this week. An official at the company told Reuters that it has already paid "special attention" to the criticism and rectified its mistakes. He said he did not

know if the firm would be subject to any additional penalties.

Getting systematic

China first used shaming tactics in 2005, when Pan Yue, the crusading vice-head of what was then the lowerranking State Environmental Protection Administration (SEPA), spearheaded several high-profile media campaigns against big state enterprises. Central governmentadministered firms, including the Three Gorges Project Corporation, were forced to give way having previously argued they were not subject to SEPA rules, which meant they could build new projects without seeking approval. Subsequent rounds of naming and shaming came as a consequence of adhoc inspection campaigns. Wang of UCLA argues while such tactics have a short-term impact, polluting firms need to be put under constant and systematic real-time scrutiny. "These campaign-style inspections still only catch violators intermittently (and) China is going to need to make more dramatic reforms," he said, adding that citizens should be given "bounties" for reporting violations. A new law enacted early last year laid out heavier punishments and ruled environmental violations must be disclosed to the public. The MEP was also given new powers this year to conduct spot inspections anywhere in the country and to summon officials to account for their actions. While China now has the legal framework to bring pollution under control, Wang believes economic worries will still undermine enforcement efforts. "We should hope for central inspection teams to bring the same sort of rigour to local enforcement in surrounding areas that we see when major international events like the APEC meeting or the Beijing Olympics come to town," Wang said.

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SPECIAL REPORT

In focus

WINDS OF CHANGE China spreads its wings

A couple of months ago, an interview with the Chinese auto-glass tycoon Cao Dewang sparked a heated discussion across China. AG looks at the fall-out…

When quizzed over his investment tactics, Cao explained that his recent $600 million outlay to establish a US manufacturing branch for his company, Fuyao Glass Industry Group, was driven largely by China’s high taxes, which Cao claims are 35% higher for manufacturers in China than in the US. Has the tax burden on Chinese enterprises really reached economically lethal levels? Going strictly by the numbers, this does not seem to be the case. Measured as the ratio of the government’s fiscal revenue to GDP, China’s overall tax burden, according to the International Monetary Fund’s Government Finance Statistics Manual, is just over 29%. That is 10% less than the global average. Another way to measure the overall tax burden is to calculate the ratio of tax revenue and social security contributions to GDP. By that measure, China’s average tax burden from 2012 to 2015 was 23.4%, or 12% lower than the OECD countries. As a percentage of GDP, China’s tax revenues amount to about 18% - compared to around 26% of GDP in developed countries and around 20% in developing countries (in 2013) - and continues to decline. Yet not everyone agrees that China’s tax burden is relatively low, especially at the firm level. A recent World Bank report indicates that the total tax rate for Chinese enterprises averaged 68%, putting China 12th in the world. This may be where Cao got his 35% manufacturingtax figure. It is not clear, however, how the World Bank calculated its rate. What is clear is that Chinese entrepreneurs and investors - who have been complaining for years about the heavy tax burden in China - are far more inclined to agree with the World Bank than more favorable comparisons and indices. One reason for this perception may be that China collects more taxes from producers, and less from consumers, than most developed economies. According to Li Wanfu, Director of the Tax Research Institute under China’s State Administration of Taxation, more than 90% of all taxes and fees are paid by Chinese enterprises, while less than 10% are paid by individuals. In Western countries, personal-income tax and socialinsurance payroll taxes constitute a higher share of total tax revenues. So what is the actual tax burden on Chinese enterprises? Officially, Chinese producers must pay an enterprise income tax of 25%. But many firms receive tax incentives. For example, high-tech enterprises supported by the government pay an income-tax rate of just 15%,

asianglass AG 17-2

while some small-scale enterprises pay 20%. I would therefore estimate that the median rate of corporateincome tax is around 20%. Companies must also pay value-added tax of 17%, though there are options for preferential rates of 13%, 11%, 6%, and even 3%. That puts China more or less in the same range as other VAT countries. Nonetheless, China’s average tax rate is significantly higher than that of Japan, South Korea, and Singapore. To find out how these rates translate in the real world, I collected data (compiled by a Beijing news reporter) from two well-known Chinese manufacturers, Gree Electric Appliances and Canny Elevator. According to Gree’s 2015 social responsibility report, the company paid about 14.8 billion yuan ($2.1 billion) in taxes in 2015. Its total revenue amounted to over 100.5 billion yuan, and its net profits equaled about 12.5 billion yuan. The total taxes paid accounted for 14.7% of the company’s total income, or 1.18 times its net profit. As for Canny Elevator, its annual report showed that it paid 336 million yuan in taxes and duties in 2015. That is about 10.27% of the company’s revenue for the year (which totaled 3.27 yuan billion), and 68.8% of the year’s net profit (which stood at 488 million yuan). These might be taken as evidence of a heavy burden of tax and duties. But it remains unclear if these figures are in line with what most Chinese firms pay. After all, local governments often offer tax returns, refunds, and breaks, meaning that the tax burden varies greatly across enterprises, industries, and regions. And that does not even account for rampant tax evasion by small firms.

Tax burdens

That said, the perceived “tax burden” in China also includes non-tax expenses, including a relatively high proportion of social insurance paid for workers, the actual cost of land, resources, and financing, as well as a variety of government surcharges. And, indeed, Cao cited China’s high land costs (as well as soaring labor costs) as additional factors driving his company’s partial move to the US. Government surcharges alone amount to at least 13% of Chinese enterprises’ revenues, with some 7% financing urban construction and maintenance, 5% going to education, and 1% earmarked for flood control. Such fees, paid to local governments, must come from profit, and cannot be passed on to consumers.

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SPECIAL REPORT

This has contributed to the erosion of Chinese firms’ profit margins, which, according to TCL Corp Chairman Li Dongsheng, have dropped to less than 2%, on average. Manufacturing surcharges therefore amount to nearly a quarter of profit, putting a further squeeze on low-profit manufacturers. While it is impossible to estimate the precise size of Chinese firms’ tax burden, they feel under pressure. At a time of slowing economic growth, the last thing China needs is to drive more producers away. To prevent this, China needs to create a more straightforward and transparent tax system, with a transition to more explicit and direct taxation. Taxes, duties, and fees for businesses must be lowered, as should the share of social insurance paid by firms for their employees in China. At the same time, China’s leaders must commit to curbing the soaring costs of land and financing, thereby paving the way for creating a more equal and competitive market for all firms. They should start by recognizing that as long as upstream infrastructure remains in the hands of often-inefficient state-owned enterprises, some downstream sectors will have to bear higher costs. Over time, such costs could damage the competitiveness of Chinese manufacturers - or drive them to friendlier markets.

OSHA complaints

Elsewhere, Fuyao Glass America Inc. says it has resolved the standing complaints filed with the Occupational Health and Safety Administration by some of its 2,000 workers. The Moraine-based automotive company has been working over the past year to handle a number of outstanding concerns for safety in the new plant, where it has nearly 2 million square feet under roof. In November, OSHA said Fuyao had racked up $227,000 in fines from 23 complaints. By late March, however, the auto glass manufacturer said it had “amicably” resolved those violations. “Over the past year, our team of health and safety professionals — including nurses, specialists, engineers and outside contractors — have worked tirelessly to develop innovative safety solutions,” said Jeff Daochuan Liu, president of Fuyao Glass America. “We are committed to maintaining a safe working environment for our employees.” In the past few months, the company has put $7 million into stronger safety measures around the plant. It has also partnered with local colleges to train supervisors in safety skills and formed an internal environmental health and safety team, teaching in both English and Chinese. The complaints, according to OSHA, had centered around alleged lack of protective equipment, exit signs and other safety equipment. “Fuyao’s rapid growth means more than just new equipment,” Liu said. “Our people are new, too. It’s necessary that we invest in training programs as we continue to invest in this plant, the largest auto glass manufacturing plant in the world.” Fuyao Glass America Inc. has more than 2,000

asianglass AG 17-2

employees in Moraine now, and the company expects that number to grow to 2,300 to 2,500 by the end of this year. In October, officials said that Fuyao could employ 3,000 people in Moraine. It reported a $41 million loss in 2016, in spite of a $104.4 million net profit for the organization. Fuyao officials said in the fall they expect the plant to break even this year and turn a profit in years after.

Overseas remains key

The company has also said that it will step up its overseas investments this year in Germany, the United States and Russia, with the total set to reach $200 million, its chairman told China Daily in an interview. “As the largest auto glass producer, we shoulder the responsibility to supply products for most global auto manufacturers,” said Cao Dewang, chairman of Fuyao. “Our investment strategy is to follow our customers and meet their requirements. “We will spend one-third of our annual investment budget of 4.2 billion yuan ($608 million) abroad in 2017, and Germany, the US and Russia are our destinations.” Cao said Fuyao will invest about 600 million yuan to 700 million yuan in Heidelberg, Germany, to set up an auto glass factory to serve clients such as Daimler AG, Audi AG, Volkswagen AG, Bentley Motors Ltd and Jaguar Land Rover Automotive Plc. The company is also selecting a new site in the southern part of the US this year to build a new factory, he said. “We will increase our investments to $1 billion in the US and create 5,000 jobs,” said Cao. According to Cao, the company’s fixed investments both at home and abroad will increase by 10 percent to 20 percent annually, depending on market conditions. “Although there are some voices going against the tide of globalization, we are determined to go abroad based on our own business development requirements and customers’ needs,” Cao said. According to the Government Work Report delivered by Premier Li Keqiang on Sunday to the annual session of the National People’s Congress, China will step up efforts to perfect its mechanism to protect the legitimate rights of Chinese companies’ overseas projects. Fuyao’s annual revenue totaled 16.6 billion yuan in 2016, increasing 22.5 percent year-on-year, and its profit totaled 3.14 billion yuan, increasing 20.7 percent year-on-year, according to the listed company’s financial report. Fuyao’s overseas revenue totaled 5.6 billion yuan last year, up 25 percent year-on-year, said the report. “Fuyao has made its global industrial plans, and we have confidence in its market share growth and profitability improvement,” said Li Ming, an analyst at Guoyuan Securities Co in a research note. China, the world’s largest auto market, saw auto sales reach a record high of 28 million vehicles last year, up 13.7 percent year-on-year, according to the China Association of Automobile Manufacturers.

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Anaylsis

Refractory Zone Fused cast refractories: a growing complexity In the latest of his exclusive pieces for AG, refractories guru P.Carlo Ratto discusses the issues facing making an accurate, informed decision on product choice when going for a cold repair. Several times I wrote on specific topics, touching subjects like manufacturing technology and quality of these peculiar refractories. What I believe it is also very important, though, is to offer to Glassmakers (who are the main utilizers of these materials) a particular angle of view, answering questions that help them make a wise decision when it comes time for procuring materials for a major furnace repair or to build up a brand new project. When it comes to these decisions, in fact, Glassmakers or Engineering Companies are going to evaluate the best cost per value, taking in consideration a number of critical factors, that we can list as follows: 1) Fused cast refractories must be able to guarantee a minimum performance, that is being able to accomplish the very basic scope of their use: this is, to mention the main, being capable of offering the structural function at operational conditions, enduring the stress consequent to the furnace heat-up and the operational thermo gradient, being able to contain glass at the glassfusion temperature, pressure and thermo-mechanic solicitations that develop during glass production in the different sections of a furnace (glass contact, superstructure etc...). 2) Fused cast refractories must be able to endure the above mentioned conditions for a minimum time, corresponding to the planned campaign lifespan, few to several years, depending on the specific glass application. This is, as the above mentioned, another basic pre-requisite. In fact, the considerable financial investment for a new furnace (of which refractories represents a non negligible portion) must be spread on a predictable time, with a minimum threshold, for a wise financial management of the activity, and for a proper planning of manufacturing operations. 3) For the same reason, the cost of the investment, and therefore the overall price of a refractory lining is also a point to be carefully perused in relation to the expected campaign life. 4) Fused cast refractories installed must be

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compatible with the minimum acceptable quality level of glass to be produced, and this condition must be respected at least for the intended campaign length. This seems to be a quite obvious statement, though even in recent years we have seen major glassmakers having to halt prematurely a furnace because the quality of glass produced was not acceptable, as a consequence of inopportune use of bad quality glass-contact refractories. It is true that, nowadays, only a part (a minor part when utilizing high quality refractories) of the glass defects are to be attributed to refractories, but it is also true that mistakes in refractory class (chemistry but also casting technique) or big issues in the refractory quality and improper manufacturing practices are not so rare; when something like this happens, it has a huge potential for causing damages, since it can lead to halting, cool down and relining a furnace after a small fraction of the planned campaign, if too much not saleable glass is produced, leading to unacceptable process yields.

AZS and aluminas

It is to be expected that AZS and Aluminas fused cast refractories are, in general, intrinsically coping with condition 1), since these peculiarities are coming from their very structure and chemistry; the presence of an amorphous phase in AZS (as a consequence of its specific composition and its rheological behavior at high temperature) is making these compact bodies compatible with the glass-furnace firing, providing that proper heat-up curves are respected, and all this in spite of the otherwise concerning presence of the transition monoclinic-tetragonal of ZrO2 that happens (theoretically) at 1170Â°C with a volume contraction around 5%. Aluminas are almost linearly expanding and, in spite of a minor amount of amorphous phase, are manageable with relatively slow heating curves. The capacity to withstand glass-furnaces operational conditions, particularly the formation of a passivation layer between AZS fused cast and the fused glass in contact (that is responsible for the outstanding

P. Carlo Ratto corrosion resistance), is also intrinsically depending to their composition and in general nobody has to be concerned with these basic conditions. When moving to consideration like in point 2), things are becoming less obvious and not at all given for granted. Assuming that the expected campaign lifespan of a given project is realistic, the proper choice of fused cast types must be done in consideration of the lifespan and the designed specific pull or productivity (tons per sqm per day) of the furnace in consideration. In other words, the most important parameter is the cumulated pull in a campaign life, or the total amount of glass tons produced in a campaign life per unit of surface (e.g. square meters) of the fusion tank. These numbers are impressively high in nowadays furnaces; for example in a soda-lime regenerative furnace for bottles, with a surface of 80 sqm producing 240 TPD of glass (or 3.0 T/sqm/D), in a 10-years-

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Anaylsis campaign will produce 10950 Tons/sqm of glass. The latter is the value to whom is normally referred when deciding the level of bracing requested in a given furnace project, for a given type of glass to be produced and for the type of furnace operated (it is clear that an all-electrical furnace for fluorine opal glass will have very different demands than a gasoperated or oxy-fuel smelter for soda-lime container flint). This is the productivity parameter that will trigger decision between regular cast or reinforced cast or no-cavity blocks, from 32% to 36% to 40% ZrO2 AZS, but also will lead the furnace designer to adopt, for example, standard 75 mm thick tiles for paving vs. 100 mm or 150 mm or maybe a double layer of staggered joints pavers.

Furnace design

Clearly, furnace designers have historical data and general criteria driving such complex decisions, coming from try-anderror experience, based on consolidated fused-cast refractory experience and a little bit of modeling. But what happens when “new sources of refractory” are available and when these options have a noticeable price-appeal, as it is evident for some so called low-cost sources? And, to add complexity, what happens when “traditional suppliers” (to whom the consolidated experience was referring) are now providing refractories out of new delocalized plants, adopting alternative technologies and local raw materials, with the aim to reduce costs/prices so as to compete with hard low-cost newcomers? In the world of refractories, there are a wide range of “corrosion tests”, where refractory materials are exposed to a simulated operational environment and the rate of corrosion is measured. These tests are less and less significant the more the operational testing conditions are altered versus the actual field-conditions, in order to get to measurable corrosion in acceptable timing (test acceleration). In the case of glass contact refractory that, as above mentioned, have an actual lifespan of several years (10 for a container soda-lime, over 15 years for a soda-lime float), the laboratory corrosion test must give measurable corrosion results in matter of hours (or very few days), with a typical time-scale 1:2000 or even less; the laboratory stress conditions must be so accelerated that the representativeness of such testing of the expected actual performance is very questionable, unless very carefully testing protocols are followed. As mentioned, point number (3) considers the price-factor which must also be taken in connection as part of the overall equation. In other worlds, a furnace designer that, based on the specific type of smelter, type of glass and overall planned productivity (tons per square meter per campaign)

asianglass AG 17-2

could install, for example, AZS sidewalls with reduced cavity 36% ZrO2 using the traditional refractory source (for which he has historical performance evidence), might prudentially decide to install AZS sidewalls without cavity 40% ZrO2, when chosing to procure refractories from a new low-cost manufacturer (for which he has not historical performance knowledge), on a prudential stance, in lack of specific experience. Doing so, in absence of other kind of information, and in spite of his prudential stance, this decision maker still assumes the risk to procure sub-standard materials (in spite of over-bracing qualities), or to spend unnecessarily more than due, if the new source is not significantly less performing than the traditional benchmark. In all cases, the financial viability of a low-cost source must be compared with the qualities required, when a prudent approach is to be assumed.

“the financial viability of a low-cost source must be compared with the qualities required” The quality issue

Getting to the glass quality consideration, as per point 4), our Glassmaker or Engineering Company is entering in a territory often marked by tricky situations, where risks are very difficult to be evaluated and almost impossible to detect, unless perusing the specific manufacturing technology and technique, starting from raw materials utilized and getting down to the process to mechanical surfaces treatment and handling. Here also are available testing aimed to evaluate the tendency of AZS fused-cast blocks to exudate glassy phase (exudation test) or for AZS and Aluminas to release gaseous blisters in the contact glass (blistering test). All of these testing, beside a low level of testing standardization, have at least a couple of major weak point when going to evaluate their significance: first is the fact that they are mostly comparative within a given laboratory and with a very low level of results reproducibility, the second is that the result is, for a given refractory block or quality, strongly dependant on the type of block sampled (size, shape) and from the sampling location within the block.

In simple words, the result of a single test has very low significance (you need several tests done under accurately standardized testing conditions) and you must be sure that your samples (those to test and the benchmarks) comes from the same location of identical testing blocks. These conditions are possibly achievable within he R&D facilities of fused cast refractory major manufacturers and in highly specialized independent testing labs, but hardly doable by Glassmakers or Engineering companies. Once more, unfortunately, the attempt of a prospect user to directly testing a new source of fused cast (with the aim of evaluate the refractory tendency of causing glass defects such as cords, knots, blisters or stones) only on the basis of independently analyzing a sample of the refractory is, in most cases, an illusion, an attempt often incapable of providing significant results. Since the assumption of glass-quality risks is an option that most “informed users” do not take as viable, there are not easy ways (other than the obvious conservative approach to stay with traditional and well known suppliers) to approach a new source of refractories, taking advantage of lower cost and still maintain under control the potential drawbacks of such procurement.

The only possible strategy is:

• To utilize materials testing (chemical and crystallographic composition, exudation, corrosion, blistering potential and more) done by an independent and highly specialized laboratory that will meticulously establish and follow both sampling and testing protocols for each parameter, and will accumulate statistically significant databases and benchmarks. • To carefully evaluate the technology, materials and techniques that a given prospect supplier is actually utilizing in all critical phases of manufacturing, and particularly for those “details” that have significant implications in quantitative (life in application) and qualitative (quality of glass produced) performances. Moved from a scenario where very few consolidated manufacturers were offering fused cast refractories produced out of few locations (utilizing well consolidated technology) to a scenario where several alternative players (independent and delocalized from traditional) are producing out of several alternative factories and technologies, users of these critical refractories (often primarily focused on the economical aspects), cannot anymore disregard the technological profile of the supplier and certain special refractory quality parameters in order to carefully evaluate the level of risk to which themselves are getting exposed, in terms of intrinsic quality of the materials provided and in terms of the supplier’s capability to provide that tested quality on a consistent and reliable basis.

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