ANALYSIS: Cullet
China is also a major buyer of cullet and second largest importer, in terms of value which was estimated at US$46.490 million in 2016, as against previous year’s US$52.201 million. China gets supply of quality cullet from its close neighbor Japan, which exports US$20 million to US$30 million worth of cullet to the Chinese buyers. Other major suppliers are USA, UK, Germany, Taiwan and South Korea. However, the world’s largest cullet exporter China’s export shipments were of worth US$63.165 million in 2016, compared to previous year’s US$71.958 million. The Chinese supplies feed mostly the neighbouring Asian countries, mainly East Asian and ASEAN nations, and also India. In terms of volume, China’s export in 2016 was estimated at 88,685 tons, more than double of the shipment of some 39,903 tons of 2015. In 2016, Taiwan was the second largest supplier of cullet to the world market with shipment of 48,954 tons of worth US$5.675 million, against previous year’s 49,490 tons valued at US$5.345 million. In volume, Malaysia was the largest Asian importer in 2016 with estimated import of 82,740 tons, against the previous year’s figure of 54,906 tons. In quantity, Indonesia was the second largest in Asia with imports of some 61,455 tons, which was significantly lower than previous year’s imports of 70,202 tons. In quantity, Malaysia, Indonesia, Thailand and India are among the mid ranking cullet importing countries globally. Thailand, being a major organized cullet collector, exports some cullet, mostly to Malaysia. Thailand’s main supplier sources are China and Japan from which it imported cullet of worth some US$33.225 million and US$23.648 million, respectively, in 2016. Imports of Malaysia, Indonesia and Thailand were consumed domestically by the glass manufacturers. All these three countries are heavily dependent on import of cullet from outside ASEAN region, as they have large production bases of container glass manufacturing which have large investments in recycling technology at the packaging bottle manufacturing plants, owned mainly by the four ASEAN regional giants, US based O-I (Asia Pacific), Bangkok Glass, Thai BJC and Philippines’ San Miguel Corporation (SMC). ASEAN’s five largest packaging glass markets, Thailand, Vietnam, Philippines, Indonesia and Malaysia are also major importers of glass containers. Thailand, Indonesia, Malaysia and Philippines are also major exporters of container glass, while Vietnam is a major deficit market, where one major container glass plant is joint venture of O-I and BJC and other major one is owned by SMC.
VIETNAM Malaya Vietnam Glass Limited Location: Ho Chi Minh City, Vietnam Products: Glass containers for glass packaging Markets: Domestic and export markets Others: Malaya Vietnam Glass Limited manufactures and distributes glass containers serving producers of beer, beverages, and foods. Began production a couple of years ago with a yearly output of approximately 75,000 tonnes of mainly returnable premium packaging glass for Vietnam’s beer, soft drink, food, wine, spirits and pharmaceutical markets. It has the capacity to adapt to market trends, extending to four lines with a production capacity of some 90,000 tonnes of glass bottles annually.
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Muliaglass (Muliaglass Container Division (MGC) of PT Mulia Industrindo Tbk) Location: Lemah Abang, Cikarang-Bekasi 17550, Jawa Barat, Indonesia Products: Glass containers, including glass bottles, jars and beer mugs. Markets: Domestic and export markets Others: MGC can produce up to 185,000 tons per year of glass containers, including flint glass packaging for food and beverage products, and beer mugs, and amber and green glass bottles for beer, energy drinks, and pharmaceuticals. PT. SCHOTT Igar Glass Location: Delta Silicon Ind. Park, 17550 Lippo CikarangBekasi, Indonesia Products: Pharmaceutical packaging glass Markets: Domestic and export markets Others: Germany based global pharmaceutical packaging leader SCHOTT’s Indonesia plant is providing as a hub for the company’s supplies to the Indonesian markets and the other neighbouring countries, especially, in the ASEAN region. SCHOTT’s Indonesian operation primarily manufactures small-sealed vials known as ampoules, and about 50-60 percent of sales are derived from the domestic market while the remainder are exported, mainly to Asian countries, including South Korea and Japan, the company said. The customers are mainly the pharmaceutical manufacturers that provide injected medications, the applications of which involves high quality glass packaging in which Schott has a command in the market. Overall, the Indonesian pharmaceutical sector is growing by at least six percent per year with expansion of spending in receiving health services. PT. IGLAS Indonesia Location: Surabaya, East Java, Indonesia Products: Packaging glass for drinks, food and pharmaceutical industries. Markets: Domestic and export markets Others: PT. IGLAS produces glass bottles of sizes ranging from 60ml to 1000ml in flint, amber and green. Its products are supplied to the domestic and export markets.
www.asianglass.com