Asian Glass Dec-Jan 2016

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December/January 2016

WELCOME TO 2016 Fre e 2016

NE N A L P R YEA

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ISS S I H T ITH

PLUS!

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Inside: Russian flat glass Egyptian Solar Beverage markets Container decoration

news, views, analysis and much, much more!

Bavelloni SpA info@bavelloni.com - www.bavelloni.com

WE ARE GLASS PEOPLE

HEYE SPEEDLINE IS-MACHINES

HIGH SPEED AT HIGH QUALITY FOR MANY YEARS TO COME High safety and high usability to protect staff and equipment Clear interfaces for fast installation and exchange of parts Clean design to fulfil HACCP requirements Flexibility through modular design Same core – same variables

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ADVERTISER FEATURE

A new year for Mappi International Mappi International is ready to live a new year full of challenges. The goal is always the same: to be a point of reference for customers and to bring high quality and cutting edge products in the market.

Mappi International is an Italian company founded in 1993 that after twenty-two years became a company leader in the furnace for even glass tempering. Twentytwo years spent to invest in research and development to propose products able to satisfy really costumer’s needs: these are the preconditions that open a new year made of challenges and projects that will bring Mappi International on the front line during the most important events in the sector.

Among the events in which Mappi International took part, the last one, in order to importance was Vitrum, an exhibition planned in the same year of Expo, the universal exhibition, where Italy was the protagonist and the attention was focused on the abilities and the goals reached by Italian enterprises. Mappi International that based its production on the research and the development is among the most important companies that represent the Made in Italy. During the Vitrum edition Mappi International was fully committed in the promotional activity in the meeting with the foreign customers with GIMAV and in the preview introduction of the new ATS J, the tempering giant.

ATS J is the new big furnace introduced for the first time during Vitrum edition. A product that has excellent characteristics, one of the bigger product in the market that can quench sheets 2700x6000 and guarantees energy saving thanks to its most important characteristic, the temperature control.

Nancy Mammaro, Mappi International Ceo & Founder says: “ATS J was a bet that committed us more than one year. We wanted to create a product considered unique in the market, with excellent functions but above all that answers to the market requirements”.

The building sector asks for always bigger tempering sheets. ATS J was

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created to answer to this requirement and also to have complete products in one production cycle.

In an historical moment in which few companies decided to invest, we needed a lot of courage to win against the fear and to pass the false idea that in a crisis period it is impossible to think to the future.

Mappi International showed that it is possible to think to the future but also that the market requires it. A market that changes continuously and that requires quality products and solutions.

An investment and a continuous task in which the company support above all the projection sector, completely Italian that represents the most important sector of the company.

Mappi International continues to fight to expand glass culture that in this last year became a new communication project. www.mappi.it and www.mappi.us are two new web sites always up to date about events, news and details.

A new advertising campaign that gave up with the past communication that has a new social image, a new way to talk about the company, its sectors, exhibitions and people who make Mappi International enterprise.

A chance to be near to the costumers in all over the world that can be always up to date.

Mappi International customer service is another point that turns in company’s favor that is always with its customers and that can reach them with an assistance service 24h thanks to a technical equipment that are able to solve every kind of problem.

A story that lasts twenty years, based on unchanging values, investments, quality products, glass culture diffusion and above all the constant presence at the most important events; values that we will find in 2016, a new year to face, knowing that we always gave concrete answers to the customers. They are our point of reference, they are people to which Mappi International must and want to answer with useful solutions for growing up them.

www.asianglass.com

Ingenuity and innovation are the key weapons to keep pace with the times. Every day Mappi International invests in research and development, in order to offer you the most suitable machinery to your needs... ... And this is not a tale.

ADVERTISER FEATURE

Bühler Leybold Optics achieves ISO 50001 certification Alzenau (Germany), October 06, 2015 – Since 2012, the European Union has tightened its energy management legislation. In the course of this development, Bühler Leybold Optics has implemented an energy management system and achieved ISO 50001 certification. “We want to focus on sustainable production as well as energy-saving products for our customers, helping them, for instance, drive down their production costs,” comments Antonio Requena, CEO of Bühler Leybold Optics.

In the first implementation stage at Bühler Leybold Optics, Quality Management reviewed and improved parameters for cooling units and ventilation systems plus default values for heating, media supply and more. Among other achievements, Bühler Leybold Optics reduced energy expenses by 10 percent as well as its natural and environmental pollution footprint. “The program not only reduced our costs, but also strengthened our employees’ awareness of environmentally friendly handling of energy resources,” says Anotonio Requena.

As the footprint of production machinery has a large impact on costs, Bühler Leybold Optics is thus adding a competitive advantage to its equipment. One example of such an energyreduction solution is the introduction of Ecomode on ophthalmic optics machines, which results in a 30 percent lower power rating. This is achieved by optimizing the consumption of all components and using them only when required by the process.

Another example is the eco-friendly components introduced in new machines such as DynaJet. Replacing the diffusion pumps with turbo-pumps saves Bühler customers up to EUR 8000 per machine and year.

But the energy management program does not end with ISO 50001 certification. It is a continuous process of creating sustainability. Antonio Requena: “In the next months, we will continue by conducting external as well as internal audits to identify further energy usage reduction potentials.” In addition, Bühler Leybold Optics will upgrade its web-based energy

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monitoring system to set up a powerful energy economy program for its customers’ coating equipment, the objective being to further reduce their energy costs and thereby to enable them to achieve a competitive advantage.

About Bühler

Every day, billions of people come into contact with Bühler technologies to cover their basic needs for foods, mobility, or communication. With our industrial process technologies and solutions, we contribute significantly to feeding the world’s population, setting the focus on food security and safety. Bühler flour mills process around 65 percent of the wheat harvested worldwide into flour. Its contribution to processing rice and producing pasta, chocolate, or breakfast cereals is similarly important. Moreover, Bühler is a leading solution provider of die casting and surface coating technologies, with an emphasis on automotive and optics. The solutions from Bühler are distinguished by high energy efficiency and quality. As a leading technology group, Bühler invests up to 5 percent of its sales in research and development. In 2014, its around 10,600 employees in over 140 countries generated a turnover of CHF 2.3 billion. The familyowned company Bühler is proud of its Swiss roots and feels particularly committed to sustainability.

Media contact: Josephina Mayerle, Marketing Specialist Leybold Optics, Bühler Alzenau GmbH, Germany Phone: +49 6023 500 105 Mobile: +49 176 84 111105 E-mail: media@buhlergroup.com

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»

Quality and reliability have the highest priority at Benteler.

This affects every task and every project. That is the only way to meet the expectations of our customers.

Eugen Michaelis, Assembly

GLASS PROCESSING IS OUR PASSION ARCHITECTURAL AUTOMOTIVE SOLAR DISPLAY Benteler Mechanical Engineering – Glass Processing Machinery More than 60 years of experiences More than 3500 successfully installed machines In 55 different countries From a 2 m machine up to a 150 m line For glass thicknesses from 0,5 mm up to 90 mm From standard to customized solution Your partner for every task!

Benteler offers washing, drilling, grinding machines, CNC processing centers, handling systems, machinery for solar module production and for mirror production, as well as laminating lines. As standard machine or customized production line.

Please find more information under: www.benteler-glass.com Benteler Maschinenbau GmbH · Germany · www.benteler-glass.com · +49 521 542 0 · glass-processing@benteler.com

Contents: December/January 2016

m e t s y s g n i r e b m u A n ew n As the industry readies itself for the end of the year, thoughts are already turning to 2016 and the exciting opportunities that await the industry.

Of course, everyone at AG is looking towards our 16th year serving the industry with great anticipation, and we will be introducing a range of new ideas through the next 12 months.

SEE US AT: One of the most obvious, starting with the next issue, will also be one of the most simple: we are changing the numbering system on EMENT CONTAI NI NG TH E EXCIT the magazine.

Since we started back in 2001, we have Asian Glass Editoria l & Distribution Sch edule always entitled our issues by “month”.

See us at A wealth of exciting oppor tunities…

However, from the first issue of 2016 onwards (which will be published in early February), we are moving towards a more harmonised Inside: system of year and number. For example, s Cost control: fuel in focu ’s PET fight Container trade: Asia the first of 2016, will be called “AG16-1” Turkey in the spotlight through to “AG16-6” at the end of next year. e! mor h muc and much, PLUS! news, views, analysis It will then move each year to be “AG17-1” etc. There is of course no difference in the FREE INSIDE quantity of issues of course, but we believe The 2017 Yearplan ner! that the new system will make it easier to track Ma xi mise you r expo su re, ma xi mise you r bu dget… down articles compared to the old-fashioned “monthly” system.

.asianglass.com subscribe online at www Is this your own copy?

AG16-1

GUJAR AT:

ISTANBUL GLASS & EXPO,

ON-PA

✷ GE: full and half display advertising ✷ DIGITAL: full and half display advert ising…and more! ✷ DUMMY COVERS: the ultimate, high impact creative… take ownership of ✷ BELLY-WRAPS: the issue high profile, hard-h itting message convey ance

9-12 MARCH

FENSTERBAU INDIA, 25-27

FEBRUARY

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■ Russian flat glass: in from the cold?

■ Inspection developm ents for Asian glass ■ Beverage markets for NE Asia ■ Evolutions in container glass decoratio n SEE US AT: Fensterba u India, PV Japan FREE WITH THIS ISSUE - THE 2016 YEARPLA NNER!

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■ Gujarat glass focus ■ Cost control: a fuel focus ■ Container trade: Asia's PET ■ Turkey: a country in focus ■ SPECIAL SUPPLEM

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SEE US AT: China Glass; SNEC China; Glass & Aluminium Saudi Arabia; Windorex Oman

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■ Asian float profitabi lity: part 1 ■ All change in Firzobad?

■ Asian pharmac eutical packaging ■ Russia: food packaging developm ents ■ SPECIAL SUPPLEM ●●●●●●●●

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East g review: part 1 SPECIAL SUPPLEM ENT: Glass coatings SEE US AT: GlassBuil d America; ASEAN Federation of Glass Manufacturers

ENT: Fenestration technology See Us At: PV Japan; Istanbul Glass and Window; Fensterbau India; Glass and Aluminium Middle East

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■ Iran: open for business?

■ Tableware: the Asian top 20 ■ Egyptian containe r glass ■ Indonesian glass processors ■ SPECIAL SUPPLEM

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■ Asian float profitabi lity: part 2 ■ China: processe d glass market developm ent ■ High rise in India: problems and issues ■ Vietnam: too fast, too soon?

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glass demand SPECIAL SUPPLEM ENT: Glass freight and logistics SEE US AT: ZAK Glasstech , Baku Glass 2017 ■

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ENT: Mould making technology SEE US AT: Glasstech Asia; Mir Stekla; Glass South America; ICCG 11

find out how by contac

ting:

Paul Russell, Tel: +44 (0) 208 638 0619 Email: prussell@asian glass.com Valerie Adamson, Tel: + 44 (0) 208 133 5273 Email: vadamson@a sianglass.com

www.asianglasss.co

m

Regulars 10 Welcome

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Have a great New Year!

See us…where?!

Iran’s open door…

12 Headline News

Openings, closures and industry moves from across Asia.

Fensterbau Indian 2015

20 Global View

Mumbai, India

Our eye on the international arena.

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

26 Batch Raw material news and views.

Istanbul, Turkey

38 Comment & Analysis

We look forward to seeing our readers and advertisers at the show!

BIPV: kick-starting 2016?

8

Istanbul Glass & Window Expo

asianglass december/january 2016

www.asianglass.com

www.asianglass.com Features 30 NE Asian container glass

Yogender Malik discusses how the rise of PET in the mature beverage markets of Korea and Japan continues to pose a challenge to container glass makers.

38 Designing the future

G. Vasilchenko-Malishev, Malishev Engineers, discusses some of the most exciting new developments involving architectural glass in Russia….

48 Egyptian solar prospects

A report released to AG discusses the potential of Egypt’s solar sector, and the resultant positive outlook for the specialist glass suppliers of the region.

52 Dump and be damned

Chinese industries are awakening to the reality that they may lose their share in the already shrinking European market due to confrontations over anti-dumping duties and allegations of circumventing the duties.

Looking forward AFGM TBA Architectural Glass Kiev 2016, Kiev, Ukraine

19-21 Jan

Glass & Aluminium Middle East, Cairo, Egypt

18-20 Feb

Fensterbau Indian 2015, Mumbai , India

25-27 Feb

Baku Glass, Baku, Azerbaijan

1-2 Mar

PV Japan, Tokyo, Japan

2-4 Mar

Istanbul Glass & Window Expo, Istanbul, Turkey 9-12 Mar China Glass, Beijing, China

11-14 Apr

Glass & Aluminium Saudi Arabia Riyadh, Saudi Arabia

30 Apr - 3 May Glassman Middle East, Abu Dhabi, UAE

10-11 May

Windoorex, Muscat, Oman

15-17 May

SNEC, Shanghai, China

24-26 May

Mir Stekla, Moscow, Russia

6-9 Jun

Glass South America, Sao Paulo, Brazil

7-9 Jun

ICCG 11, Braunscheweig, Germany

12-15 Jun

Intersolar Eurpoe, Munich, Germany June Glasstec, Duesseldorf, Germany

22-24 Jun 19-22 Sept

Glassbuild America, Las Vegas, Nevada

19-21 Oct

ZAK Glasstech, Mumbai, India

2-4 Dec

Cuba Glass, La Habana, Cuba

6-7 Dec

Glasstech Asia TBA ASEAN Federation of GM

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Anaylsis 68 In Focus

As the industry gears up to implement the switch from PET to glass for medicines meant for certain patient categories, the debate on the merits and demerits of both materials continues.

www.asianglass.com Your favourite magazine is now available at the App Store…

70 Window

download today to see your first sample issue!

74 Refractory Zone

Asian Glass: now for mobiles, ipads and androids

Analysis and insight into Chinese pricing data.

In his latest exclusive offering to Asian Glass, Carlo Ratto discusses how continually fluxing situations in world economies affect the outlook for refractory producers. www.asianglass.com

TBA

december/january 2016 asianglass

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Welcome

O

SEE US AT:

ZAK GLASSTECH

n the 17 November 2015, a large delegation of the European Parliament, the European Commission and Permanent Representations shared their views with industry representatives from the glass sector at a dinner debate hosted by MEP Seb Dance (UK, S&D) on behalf of Glass Alliance Europe. The debate highlighted the contribution of the glass industry to Europe’s social, environmental and economic objectives.

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news, views, analysis

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Russian flat glas

s Egyptian Solar Beverage markets Container decoratio n

and much, much mor

e!

The EU is the world’s largest glass manufacturing region, and according to a recent report by the European Economic and Social Committee, generates revenues of some €35 billion. It has around 500 plants throughout Europe and supports over 500,000 jobs directly and indirectly along several value chains.

“Glass is not just a material of choice for many applications and an enabler of high-tech products.

It also forms part of our daily lives and offers added value across several value chains in Europe, which means jobs, tax revenues and social welfare support”, commented Dave Dalton, CEO of British Glass.

CONTACT DETAILS

December/January 2016

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

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

RESEARCH

THE EUROPEAN GLASS INDUSTRY HAS BEEN A MAJOR CONTRIBUTOR

The EU glass industry is the world leader in energy efficient glass manufacturing process. It continues to produce innovative solutions, to optimise resource management and to minimise environmental impacts. The sector has reduced its energy consumption per item over the last few decades to meet Europe’s demand, demonstrating a major decoupling of production from energy consumption and CO2 emissions. For instance, in Germany, the sector has reduced its energy consumption by 7 % and cut CO2 emissions by 10% while increasing production by 19% since 1990.

Industry representatives called for policy makers to recognise the potential of glass products in supporting a low-carbon, energy-efficient and circular economy in Europe, and the efforts made by the glass industry to maintain industrial growth in Europe.

“The European glass industry has been a major contributor not only to job creation and competitiveness in the EU, but it also plays, and will continue to play, an essential role in the transition to a greener and low-carbon economy”, Seb Dance declared in his conclusions. “As policy makers, we need to better engage with industries like glass, to support them in their efforts to reduce energy consumption and CO2 emissions, but also to encourage them to stay in Europe and to continue to create stable and local jobs”.

There is no doubt that without a strong and progressive technology and innovation base in Europe, regardless of the impressive strides being taken elsewhere to close, and perhaps even surpass the quality gap, the long-term stability of the global glass industry would be in jeopardy.

Let us all hope that the powers-that-be fully realise the importance of this major industrial sector to the future of European development, and with that, the world as a whole.

Have a great 2016!

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

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

Bowhead events Creating Opportunities: Delivering Results OVERSEAS OFFICES

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

HEAD OFFICE Andy Skillen Publishing Director

Got a general enquiry? use enquiries@asianglass.com 10

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Bowhead Media Ltd, Communications House 26 York Street, London W1U 6PZ United Kingdom Asian Glass (ISSN: 1475-6501), is published by Bowhead Media Ltd, registered in the UK no: 6127651

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HEADLINE NEWS ASIA Outlook improves as German ties increase India Following the recent visit of German Chancellor Angela Merkel to India, VEKA India, a subsidiary of VEKA AG – the world’s second largest manufacturers of windows and doors systems has reiterated its plans to expand in India by introducing new products specific to the Indian market and by expanding its geographic footprint. The US 1.4 Billion company is one of the pioneers of uPVC door and windows systems in India and has recently completed ten years in India.

“The visit of the Chancellor is not only expected to boost trade ties between the two nations but is also expected to help German subsidiaries entrench their businesses in India. Both the leaders were very clear in their communication. While the Indian PM focused on facilitating ease of

doing business in India, removing concerns of investors and driving growth through software, the German Chancellor focused on the fusion of India’s IT expertise and German Engineering. Ms. Merkel also welcomed the fasttrack approval agreement signed on Monday. This will ensure that German companies have a single point of contact with the Indian government, and thus avoid the layers of bureaucracy,” says Mr. Rajesh Chawla, Director, VEKA India.

In line with the Indian Prime Minister’s ‘Make in India’ vision, VEKA India will also be looking at boosting its growth by manufacturing the systems domestically at its facility in India in the near future. Currently its 20,000 sq feet facility in Navi Mumbai has a sophisticated display center as well as German

Xinyi opts for Fives input China Xinyi Group, one of the top Chinese glassmakers, renewed its trust and has appointed Fives for the supply of one annealing lehr for float glass and four lehrs for photovoltaic glass.

Fives and Xinyi Group signed two new contracts for supplying annealing lehrs. Xinyi Group goes to build a large glass company in Malaysiya after the strategic plan of “one belt and one road” pioneered

by Chinese government. Fives joins in the activity by the lehr’s supply with first-class technologies and services.

Fives, with Fives Stein Metallurgical Technology Shanghai, is going to offer the most progressive technical targets in the world: 1. Prium® Lehr, the float glass lehr with max. output of 1200 MT/D. 2. Prium® Lehr PVG, the photovoltaic glass lehrs with max.

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output of 250 MT/D with a pull capacity and ribbon width which are the maximum in the world for photovoltaic glass.

These annealing lehrs will have excellent technical and economic advantages fully representing Fives’ R&D ability in high and new technology field. These lehrs are scheduled to be put into use separately in 2016.

Fives and Xinyi Group are longterm cooperation partners, have deep cooperation in float glass, photovoltaic glass and extrathin glass production sectors.

This cooperation, supporting by relevant Chinese policies, will enhance China’s far-reaching influence in Asia. For the aim of building-up harmonious and winwin market environment, Fives will make tireless efforts together with Xinyi Group persistently, and to create unlimited value to the whole society.

asianglass december/january 2016

made state-of-the-art testing rig to test windows for water and air tightness and other performance criteria. “The exacting standards and precision engineering that Germany is world renowned for are adopted by us to create uPVC windows and door systems that are suitable for Indian conditions,” added Mr. Chawla.

“When VEKA AG entered the Indian market in 2003, the uPVC door and windows market was very rudimentary. We have invested time and efforts in familiarizing the Indian market with the benefits of uPVC fenestration and are planning on rapid expansion from here on.”

Between India and Germany, there is good room for expansion despite an annual trade volume of 16 billion Euros and German businesses want to emphasize their contribution in the making

of smart industries’ age.

“The overall market size of PVC window profiles in India is about 40,000 tons in an annum. In Germany, VEKA by itself surpasses the figure in less than a month. Today, uPVC is the popular choice for windows and doors in all of Europe and America. Being rigid, durable and recyclable besides being costeffective, this material is fast replacing the traditional wood or aluminium profiles across the world. With German technology on Indian turf, we intend to back the Make in India ideology with our commitment to quality offerings. With our latest range we hope to extend both choice and innovation to our customers and we are positive our profiles will be the future of window and door installations,” concludes Mr. Chawla.

Sage reaches partnership with Chinese supplier China Beijing-based Jun Hao Group Co. Ltd. is partnering with SageGlass to supply the Chinese building market with its electronically tintable dynamic glass. According to Sage, the agreement is its first partnership with a curtainwall manufacturer that delivers to the Chinese mass market.

“The market in China for SageGlass will grow rapidly as education and awareness of the product accelerates,” says Haijun Song, Jun Hao’s chairman. “China is committed to enhancing the sustainability of its buildings and to reducing energy consumption and carbon impact.

SageGlass is an excellent fit in this regard. We were very impressed by the product’s ability to manage daylighting in a building while also maintaining a view through the window, even

when fully tinted. This is a very innovative technology that will be well-received in the Chinese commercial and residential market.”

SageGlass will be produced at its manufacturing facility in Faribault, Minn., while Jun Hao will manage distribution and installation across China.

“We are proud that Jun Hao selected SageGlass as its dynamic glass partner after a rigorous vendor review process,” says Dr. Alan McLenaghan, SageGlass CEO. “Their decision reflects the quality and integrity of our product, our deep intellectual property leadership over this technology space, as well as the commitment by Saint-Gobain to develop this exciting technology and stand behind the product for the long-term.”

www.asianglass.com

Glass lines suffer as economy bites China In October 20th, the flat glass giant Farun announced that the company had shut down for liquidation. This was a landmark in Chinese flat glass history.

Industry insiders believe that the Farun run down just a microcosm of the flat glass industry under the background of a loss of RMB 100 for production of one tonne flat glass. It also means that the industry reshuffle is accelerated under the condition of overcapacity and fierce competition. At the same time, the flat glass enterprises have carried out cold repair, changing production of photovoltaic glass, optical glass and other varieties, trying to avoid the blood ocean of competition.

According to senior analysts, in fact, since 2014 as real estate industry continued to decline, the upstream flat glass industry has suffered a huge impact. The decline in demand, capacity expansion, fierce competition, plus strict control of environmental protection,

"Over 30% of flat glass lines shut down, and there is an average loss of RMB 100 for one tonne of flat glass production” resulting an increase of nearly RMB 60 per tonne for production cost and making this in the worse for glass enterprises under loss, the market is recognized a new round of reshuffle has come.

According to business community statistics, as of October, the country had a total

of 346 float glass production lines with total annual capacity of 1,225 m.cases (61.25m.t/y). But, only 216 lines are in operation with annual capacity of about 824m. cases (41.2m.t/y). The utilization rate of flat glass lines is only 67%. Many of which are in cold repair. This is not the end of the cold repair situation, the most severe shrinking of downstream demand in winter has yet to come and more lines will be in cold repair. In addition, many flat glass enterprises also changed their products to the high value-added products, such as colored glass, photovoltaic glass, electronic optical glass and decorative glass.

According to incomplete statistics, more than 73 lines changed their products during 2014~2015.

In the long run, the long run down shows that the excess capacity is exiting and slowly the industry is moving towards a balance of supply and demand, but adjustment of the industry capacity pattern to a reasonable level also needs time.

Asahi Glass to expand its solar control Low-E glass Thailand With an eye to capitalise on the growing demand of value added glass for energy saving purposes, Asahi Glass Thailand is undergoing an expansion at its one of the three manufacturing facilities in Thailand.

“The investment will not only enhance the efficiency of the Samut Prakan plant of AGC Flat Glass Thailand Plc, but also allow the production of higherperformance glass products starting in the first quarter of next year,” according to Takuya Shimamura, president and CEO of AGC Flat Glass ( Thailand) PLC. Besides Samut Prakan, Asahi Glass operates two more

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facilities at Chon Buri and Rayong in the country.

As the construction boom continues in Southeast Asia, improvement of energy efficiency has become one of the key issues for large buildings against the backdrop of increasing fuel imports and power shortages in recent years, while air conditioning is used to cool buildings throughout the year. Demand is rapidly growing for solar control Low-E glass, which increases cooling efficiency and contributes to reducing energy use.

The expansion project aims to ensure a sufficient supply of the products to meet demand

in Southeast Asia. It will enable the manufacture of double silver-coated Low-E glass, besides single-silver-coated Low-E glass.

The double silver coating improves solar control performance while maintaining the level of visible light transmission, enabling "bright windows with good heat shielding performance".

With the production capacity enhancement, the company will become the first manufacturer in Southeast Asia with an integrated manufacturing process, handling from manufacturing of float glass up to the double silver coating process.

Ocean Glass completes cold repair Thailand Thai glass tableware producer, Ocean Glass PLC has completed cold repair of its soda-lime furnace and is looking for optimum production of glass tablewares from its manufacturing facilities.

The company sees a high possibility of achieving a 10 percent revenue growth this year due to expansion into Southeast Asian markets and declining production costs.

One of the largest producers of tableware glass in South East Asia, Ocean Glass exports about 73 % of its total production to various Asian and European markets. In the business for more than three decades, Ocean Glass has been providing befitting glassware for every occasion under its established Ocean and Ocean Professional brands. The firm's portfolio covers glassware for everyday use and a variety of professional-grade items for different occasions. Ocean Glass’s state of the art glass manufacturing factory is located on an 84-acre of land at Bangpoo Industrial Estate in Thailand.

In 2014, Ocean Glass had reported a consolidated sales of Baht 2.077 billion. It is worthwhile to mention that in 2014 Ocean Glass had to confront a problem of shutdown of soda-lime glass because of chromium contamination in silica sand, which affected the color of glasses.

Ocean Glass had shut this furnace in April of this year and spent about Baht 61.7 million for the repair. Besides furnace repair expanses, the company has had to incur a production loss of Baht 14.4 million due to shutdown.

Asian Glass: mobiles, ipads & androids

december/january 2016 asianglass

13

News

Imports and pollution pile pressure on Firzobad India Colourful glass bangles from Firozabad have long caught the fancy of women old and young, while chandeliers manufactured here have adorned the ceiling of the Rashtrapati Bhavan, but the bangle town's once-flourishing glass industry today faces a threat from cheaper Chinese items.

High influx of Chinese glass products into the market is posing a serious threat to the century-old Firozabad glass industry, which is India's biggest glass cluster.

It is estimated that Chinese glass products today occupy 80% of the local market.

Colorful bangles, laboratory apparatus and various other glass products have been manufactured for over a century in this small industrial town, but manufacturers from the industry are worried over the entry of Chinese products in the market.

The century-old glass business in Firozabad has seen many ups and downs, but this time the threat may be too huge to thwart.

In 1996, the glass industry turned from coal to natural gas, a key input in the manufacturing of glass. This not only improved the quality of glass but also kept pollution caused by the industry in check.

Today, there are about 200 factories operating on natural gas, which employ 6 lakh workers.

With time the bangle industry has seen innovation, modernization and expansion. But the local market is now flooded with Chinese glass products which have caught the attention of buyers due to their low prices and better quality.

Amit Gupta of Imperial Glass emporium said, "Due to the ignorance of the government chandelier industry is nearing its end. We had a lot of expectations from the new government but conditions are getting worse day by day."

Hemant Agarwal of Laser International group added, "Earlier we used to have bumper sale but this year it's not even 25% which is due to cheap Chinese products. Import of glass products is increasing, state and central government is not sincere about glass industry."

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"Chinese items are spreading into the market, and tired with government policies several domestic companies are selling Chinese products under their brand labels.

"Government must increase import duty on Chinese glass items. Shortcomings in domestic business policies must be changed in the country. Tax on glass production in Gujarat is 5% and in Uttar Pradesh it is 14%," Agarwal said.

Chinese products are also taking over the bulb market, leaving no place for locally made bulbs.

Firozabad's famed glass bangles are also under threat from the intrusion of Chinese bangles in the market.

Ashwani Kumar, a local bangle supplier said, "High inflation, changing fashion trends and entry of Chinese glass bangles is the starting of bad days for local bangle industry, which is the identity of Firozabad."

"Dying glass industry will directly impact the life of people in Firozabad," Kumar said.

Noted Industrialist and former head of The All India Glass Manufacturers' Federation, 94-year-old Balkrishna Gupta said, "Prime Minister Narendra Modi presented sweet dreams, local businessmen had a lot of expectations but dreams are still dreams. To face these challenges the glass industry has to come on a single platform and work out a solution themselves."

Modi while addressing an election rally at Firozabad during his Lok Sabha election campaign had discussed problems faced by the bangle industry and promised a solution if BJP came to power at the Centre.

Senior Samajwadi Party Leader, Professor Ramgopal also promised relaxation for the glass industry. Ramgopal's son Akshay Yadav was elected a Member of Parliament from Firozabad.

But neither state nor central government has taken any steps to help the local glass industry overcome challenges faced by it.

Secretary of Glass decoration Association, Shankar Gupta said, "Chinese electric rods, saddlers,

asianglass december/january 2016

LED and other items are reaching local market in large numbers; they are cheap and attractive in comparison to local products."

"People who used to give employment to thousands of people in manufacturing are working as suppliers. In Firozabad itself Chinese items worth Rs 8-10 crore are sold easily.

Suppliers from Delhi, Hyderabad and Mumbai also bring in a lot of Chinese products," he said.

Glass exporter, Umashankar Gupta said, "Chinese products worth Rs 10 crore come into Firozabad. In Delhi, Mumbai and Kolkata the figure is in billions annually."

Pollution problems As if imports were not a big enough issue, a team of scientists has also visited Firozabad to collect samples of air pollutants spewed from the glass industry particularly in Taj trapezium district.

The visit comes after, National Green Tribunal (NGT) took cognizance of air quality issue raised by NGO Social Action for Forest and Environment (SAFE), which filed a plea in the court, highlighting the lacunas regarding monitoring of air quality level in Firozabad as unauthorized glass industries are continuously working in the district without the permission of the state pollution control.

The toxic gases coming out from glass industry was reportedly polluting the air in the area.

As per the report, the team was led by senior scientist, K K Garg, of ministry of environment and forest, scientist V K Shukla and Kamal Kumar of central pollution control board and area officer Vishwanath Sharma of Uttar Pradesh pollution control board (UPPCB) collected samples for RSPM, SPM, Sodium oxide and Nitrogen oxide from four places of Makhanpur of Firozabad.

Area officer, Vishwanath Sharma of UPPCB told TOI, "All the samples are being sent to Delhi laboratory. Once the results are out, it will be sent to NGT." "NGT might take action aganist 143 glass factories in Firozabad for violating the norms. Next hearing of the issue was scheduled for December 16," he added.

IFC to invest in Sphinx Egypt IFC, a member of the World Bank Group, is investing in a 20% equity stake in Egyptbased Sphinx Glass , to boost the glass manufacturing sector in the region, support the company'sexpansion, and spur job creation and growth.

Sphinx Glass is a subsidiary of Saudi-based Construction Products Holding Company ( CPC ). The IFC investment will enable Sphinx Glass to optimize production, improve its energy efficiency and create more jobs, as well as boost the development of Egypt's industrial infrastructure. The company is a key supplier of float glass to Egypt's construction sector, and a significant regional and international exporter.

Mu'tazSawwaf, Vice Chairman of CPC said: "IFC will play a strong role as an equity partner helping a regional player in its expansion plans in Egypt. We aim to build a long term relationship with IFC, as we continues to execute on our international expansion strategy, capitalizing on increasing demand for building materials and glass in Egypt and Africa."

MR_Story The investment is part of World Bank Group strategy in Egypt to boost job creation through the manufacturing sector and promote energy efficiency improvement initiatives. It will also strengthen regional integration through a South-South investment, a key pillar of IFC's strategy in the Middle East and North Africa.

Nada Shousha, IFC Country Manager for Egypt, Libya and Yemen, said: "Creating new jobs and strengthening the manufacturing sector, particularly in an area that can boost exports, is vital in this period of transition for Egypt.

We hope this investment will also help restore investor confidence in the country, and send a positive message to international and domestic investor".

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News

Flat planel industry remains source of optimism China In the flat panel display industry the ultra-thin flat glass mainly has three parts, ITO conductive glass, protecting glass and glass substrate.

An analyst of S & P Consulting has pointed out: the current global flat-panel display industry continues to shift to China.

China has more than 100 TNLCD production lines, some 40 STN-LCD production lines and nearly 20 TFT-LCD production lines. Up to now, China's LCD production accounts for about 35% of the world production, of which the output of TN/ STN-LCD accounts for over 90% of the world output.

Currently, there are 5 TFTLCD lines of 4.5 generation, 2 lines of 5 generation, 3 lines of 6 generation and 8 lines of 8.5 generation built and being built. The shipment of TFT-LCD panel accounts for 12.3% of the world total and is expected

to be significantly improved in the future. LCD panel industry in China has been rapid development and is huge demand for upstream material, glass substrates. The market opportunities are unlimited.

At present, China has become the largest market of panel display consumption in the world. With the further upgrading of technology, LED backlight TV, 3D TV, smart phones, tablet computers and other electronic products will promote development of the industry. China's color TV manufacturing capacity has accounted for 50% of the total capacity of the global color TV industry, mobile phone manufacturing accounted for more than 80% of the world total and other consumer electronics products are mostly produced in China. In addition, China is not only a

Bottero benefits from 46.5m.

Euro contract Turkey SACE and Deutsche Bank announce the finalization of an important financing transaction in support of one of the major contracts originally won in 2014

by Bottero, the Italian leader in equipment for the production of glass, with the Turkish company Park Cam (Ciner Group), a glass container manufacturing company.

Under the transaction, SACE has guaranteed a 46.5 million euro loan granted by Deutsche Bank to Park Cam to support the supply of machineries for the production and processing of glass containers for an integrated beverage industry plant in the Industrialized Zone of Bilecik, in north-western Turkey.

A unique case worldwide, Bottero has been world leader for 50 years in all sectors of the glass industry (hollow glass, special equipment, flat, laminated and monolithic glass). The company operates primarily in foreign markets, which generate 90% of sales, with a commercial

16

presence in Europe, China, South America and North America.

SACE has been serving Bottero since 2003: it has insured its supplies and facilitated the access to credit lines to support its internationalization plans for an overall value exceeding 35 million euro in different emerging markets, like Kazakhstan and Brazil as well as Turkey.

This operation, which utilized the international network and specific know-how of Deutsche Bank, confirms the concrete support the bank lends to Italian companies concerned with exports and internationalization, which, like Bottero, represent Italian excellence.

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asianglass october/november 2015

big manufacturing country, but also a big consumer. So strong demand of many display terminals for ITO conductive glass are all along and that’s why the mainland has become the global production base of ITO conductive glass.

Protective glass is one of the most widely used in the panel display industry. At present, most of the protective glass market is still dominated by consumer electronics and the main application areas are small and medium size mobile terminal market. China, as a consumer electronics manufacturing base, has a huge demand for the protection of glass.

In the sector of glass substrates, Corning, Asahi Glass and Nippon Glass are the world leaders, showing the highly oligopolistic situation.

Since 2010, smart phones,

tablet computers and other mobile terminal sale have opened another nuggets market for the glass substrate industry.

Construction and production of many lines of high generation LCD panel lead to strong demand for glass substrates.

Then, glass substrate giants have set up factories in China, offering nearest services.

Although China's flat panel display industry is developing rapidly the glass substrate industry has just started. The main factors that hinder the development of glass substrate industry include: national policy subsidies are not enough, industry standards are not perfect, product certification cycle is long and the glass substrate giants suppress the domestic glass substrate enterprises by means of intellectual property and lower price.

Al-Saher opts for Landglass Saudi Arabia For more than forty years, the name of Al-Saher has been known as one of the biggest and most important names in the field of sales and Gas Transportation which was the first enterprise. The group grew and activities extended to include Construction, Building, investment, Hotel Services, Tourism and Car Rental. Most recently, the group has established the biggest most modern Glass and Aluminum Factory ever built in Jeddah as a culmination of its success.

Al Saher Glass & Aluminium Factory is the newest and largest Glass and Aluminum factory in Jeddah city. It produces glass and double glass in addition to aluminum. In 2014, Al Saher Glass & Aluminium Factory purchased two bi-directional glass tempering furnaces from LandGlass. The whole process went pretty well.

Now these two glass tempering furnaces are running perfectly in their factory.

"For Your Next Leap" is a commitment that LandGlass is endeavoring to fulfill with actions

every day. LandGlass is taking active and practical actions to achieve win-win cooperation and innovation through joint efforts with customers.

NEWS IN BRIEF Russian company Stekloteh glassworks plans to expand its product range before the end of the year. It will start production of bottles for wine and champagne.The company already makes glass for juices, beer and vodka. The new bottle type is of a standard form, so the company relies on a wide range of consumers.In addition, the plant has mastered the production of sophisticated, exclusive bottles.According to the management, the manufacturer must search for new markets for products and the modernisation of its production to meet the needs of customers.

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News

Corning unveils Hefei investment China Corning Incorporated has announced that with the support of the Hefei government, Corning will locate a Gen 10.5 glass manufacturing facility adjacent to the BOE Technology Group Co. Ltd. (BOE) plant in the Hefei XinZhan General Pilot Zone in Anhui Province, China. Glass substrate production from the new facility is expected to support BOE's plan to begin mass production of LCD panels for large-size televisions by the third quarter of 2018.

The total investment for the facility is approximately $1.3 billion. Corning's investment will be composed primarily of equipment and precious metals.

Corning's net outlay of $460 million, which is net of government

and commercial incentives, is expected to be approximately $290 million in cash and $170 million of currently owned precious metals.

As part of this investment, Corning and BOE have entered into a long-term supply agreement that commits BOE to the purchase of Gen 10.5 glass substrates from the Corning manufacturing facility in Hefei. BOE also has extended its long-term supply agreement with Corning to purchase glass substrates for Gen 8.5 sizes and below.

The market for large-size TVs is projected to grow at a compound annual growth rate of more than 20%. This investment will enable Corning to become the first

manufacturer of TFT-grade Gen 10.5 substrates. At 2,940 mm x 3,370 mm, Gen 10.5 will be the largest LCD glass substrate available, providing the most economical cuts for 65-inch and 75-inch TVs. The Gen 10.5 substrates manufactured at the Hefei facility will use Corning® EAGLE XG® slim glass.

"Corning is pleased to extend its close relationship with BOE and to demonstrate our continued commitment to China -- the world's largest TV market," said James P. Clappin, president, Corning Glass Technologies. "As demand for large-size LCD TVs accelerates, we are supporting this trend by utilizing our superior fusion technology to deliver the industry's

largest glass substrates to a key customer."

"Corning is confident that we can pace the investment with BOE's expansion, keeping our supply balanced with our demand when this facility begins producing glass approximately three years from now," said John Zhang, general manager of Corning Display Technologies.

Corning and BOE have worked together since 2004 when BOE established its first Gen 5 panel fab in Beijing. This relationship extended to Corning's introduction of Gen 8.5 melting and finishing capacity in Beijing in 2013, alongside BOE's Gen 8.5 panel fab in Beijing Economical and Technological Development Zone.

Dropping sanctions makes for open markets Iran German, Italian and US companies have indicated readiness to invest in Iran’s glass manufacturing industry, head of the Iranian Glass and Crystal Producers Association says.

They made their intentions known to Iranian officials during visits by European delegations to Tehran recently in the wake of last month’s conclusion of nuclear negotiations, local media quoted Ahmad Amir-Ahmadi as saying.

“Iran’s gas manufacturing industry, like other industries, has caught the eye of many foreigners for investment after the nuclear accord but we have to wait and see what happens to the outcome of the negotiations,” he said.

Amir-Ahmadi said any possible tie-up could involve transfer of technology and machinery.

Iran’s reserves of silica -- the main raw material for commercial glass production – are among

the world’s largest. With its huge quartz and lead resources, cheap electricity and low labor costs, the country has the potential to become a leading world producer of crystal and glass ware.

The glass manufacturing industry is energy intensive but Iran’s abundant energy sources put the country in an advantage over the rivals for production of the commodity.

Iran’s glass and crystal

manufacturing industries are mainly centered in Tehran and Tabriz, with production mainly aimed at the domestic market.

In May, Iran launched a glass fabrication plant, which President Hassan Rouhani called the country’s largest production line.

Sahand Float Company in Tabriz in northwestern Iran will produce 220,000 tonnes of flat glass per year for building, automotive, security and decoration use.

NIGMA seeks Taj district support India The Northern India Glass Manufacturers Association (NIGMA) has sought government's intervention in saving glass units outside the Taj Trapezium Zone (TTZ) which are getting gas at higher prices.

NIGMA has alleged that government-run GAIL (India) is selling natural gas to units in TTZ at cheaper rates while the glass units outside the zone are getting the same gas at high prices.

"Due to this discrimination, the glass units outside the TTZ are facing huge problems.

Their products have become

18

uncompetitive and gradually the units are closing their production lines," NIGMA President K K Sharma said.

TTZ is an area of about 10,400 sq km around the Taj Mahal.

It covers five districts in the Agra region and comprises over 40 protected monuments, including the Taj Mahal, Agra Fort and Fatehpur Sikri.

In a representation to the Cabinet Secretariat, the association has urged to take up the issue with both the Petroleum and Environment Ministry.

"As per the law, no new units

asianglass december/january 2016

can be set up in TTZ and the existing units cannot do capacity expansion. But both the things are happening.

"Government should immediately take corrective action to encourage manufacturing under 'Make in India' without discrimination," Sharma said.

The NIGMA has also urged the Petroleum and Natural Gas Ministry to implement a Parliamentary standing committee's recommendations of 'one industry one rate' for gas pricing to the glass industry

throughout the country and to supply gas to TTZ glass industry at competitive market rates to check mushrooming of industry.

The Association also cited a Supreme Court judgment that has observed that GAIL may examine the possibility of making available more quantity of gas to industries outside the trapezium.

It has also approached Environment Minister Prakash Javadekar, seeking his intervention in the matter as opening of new units in TTZ would damage the monuments.

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News

Global View

Duran dances to a new tune UNITED STATES A German-based company has acquired a New Jersey-based glass manufacturer, according to announcements by the company.

The Duran Group and OEP Capital Advisors signed the agreement to acquire Wheaton Industries from Incline Equity Partners on Tuesday.

Neither company discussed for what amount Wheaton Industries was purchased.

"It's really almost an ideal fit," said Wayne Brinster, CEO of Wheaton. "It would be hard to imagine two companies that fit together better. Even the product portfolio does not have much in the way of overlap."

Duran expressed interest in purchasing Wheaton 16 months ago, Brinster explained, and the sale process began last January.

There were a number of parties interested in acquiring Wheaton but the Millville-based glass company's board members chose

MEXICO Duran and OEP. "It's a nice marriage," Brinster said. "The two companies are aligned to be the solution provider of choice for laboratories."

Both Duran and Wheaton manufacture laboratory glass.

Duran distributes mainly in Europe and Wheaton distributes in North America.

Duran focuses more on reusable equipment, according to Brinster, and Wheaton focuses more on disposable equipment.

Due to the different focuses, there is not a lot of overlap between the two companies. The two companies will also be able to help distribute each other's products in each other's markets.

There are also plans to expand the combined market into Asia.

OEP purchased Duran in February.

"OEP is excited about the acquisition of Wheaton by Duran Group as it represents a

leading brand in the life science market," said Dr. Jorg Zirener, a partner at OEP, in the company's announcement. "We are looking forward to working together closely with the management of both companies, to further accelerate the growth Wheaton has enjoyed."

Wheaton has been involved in glass manufacturing for 125 years. With the acquisition, Wheaton plans on continuing the tradition.

"We do not see this as having an effect on employment in a negative way," Brinster said.

"There's no such thing as guarantees but as the result of the transaction we're looking to expand the business. If anything we're hopeful to add jobs to the South Jersey area and not take any of them away."

Another longtime Millville glass factory, Gerresheimer Glass Inc., recently closed its doors and lost 100 employees.

Glass sales grow as outlook improves CZECH REPUBLIC Sales of Czech glass and ceramics producers grew by 8.1 percent to 45.65 billion Kč last year and direct exports with 33 billion Kč sales contributed three quarters to the figure, according to data from annual report of the Association of the Glass and Ceramic Industr y.

The highest share worth 17.34 billion Kč came from flat glass. This segment registered a 12.2 percent growth in sales.

Companies from group AGC Flat Glass Czech with sales around 13 billion Kč contributed significantly to the volume.

“The development in the flat glass segment in the coming years will be influenced in particular by the situation in construction in Central Europe and production of the automotive industr y,” the association said in the annual report.

The highest growth in sales was registered by utility

20

Vitro to expand float ops

glass producers whose sales increased by 22.1 percent to 4.92 billion Kč.

Sales of ceramics producers rose by 30 million Kč to 4.56 billion Kč and 73 percent of them came from technical and sanitar y ceramics.

The positive results were reflected also in employment.

At the end of last year, 22,208 people worked in the sector, 1,001 (4.7 percent) more than in 2013. Of the number, 18,532 worked in glass production and the rest in ceramics production.

The average wage remained unchanged at 25,383Kč a month.

“The year-on-year wage development reflects the economic situation of companies in the glass and ceramics industr y. A growth was seen only in the group of technical and sanitar y ceramics.

In the other

asianglass december/january 2016

production sectors, wages either stagnated or even fell moderately,” the association said in the annual report.

The highest wages were in flat glass production, of 31,056 Kč a month on average.

The glass and ceramics industr y in the Czech Republic is strongly export oriented so it is influenced by changes in the world and in particular in the EU where 70 percent of the exports are targeted.

“Pro-export orientation and dependence on a high number of related industrial sectors, to which it supplies products, makes the glass and ceramics industr y ver y vulnerable,” the association warned.

“Not only the development of domestic demand, but also future economic development is important, in particular in Europe which is the biggest export territor y for the Czech glass and ceramics industr y,”

Officials from Vitro, S.A.B. de C.V., the leading glass producer in Mexico, have announced the expansion of the company’s production capacity of flat glass, through the construction of a new float glass furnace in the country, which it is estimated to become operational in 2017.

This furnace will be added to the current capacity of three furnaces, according to a company release.

In addition to this expansion, the float glass furnace operating in Mexicali, will enter a repairing phase in mid-2016 that will also be used to expand its production capacity.

Net investment for the capacity expansion will be approximately $85 million, given that the company will take advantage of some equipment in good conditions from the float glass furnace that was closed in Mexico City in 2006, according to the release.

According to company officials, this expansion is projected due to good future market perspectives that the company sees in the automotive and construction industries in Mexico.

“This decision will enable us to support our customers’ growth in the automotive and construction segments in the coming years and to continue generating future value for our shareholders,” said Adrian Sada Cueva, CEO of Vitro, in the release. the association said.

Exporters will now have to grapple also with the loss of markets in areas hit by war conflicts. Competition of companies from third world countries, in particular the Middle East, is growing constantly. This sector has therefore never grappled with such uncertainty as in the last few years, it added.

In the middle of this year, 108 companies with more than 20 employees were involved in the manufacture of glass and glass products in the Czech Republic.

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News

Brait eyes bottle maker float SOUTH AFRICA South African investment firm Brait is preparing to float glass bottle maker Consol, in a deal which could value the company at around $1.2 billion, two sources familiar with the matter have said.

Goldman Sachs and BofA Merrill Lynch are working on the listing, along with South African banks RMB and Standard Bank, who will market the deal to domestic investors, the sources said.

The flotation of the Johannesburg-headquar tered business is likely to come in the third quarter of next year, one of the sources added, cautioning that no deal was certain.

Goldman Sachs, BofA Merrill Lynch and Standard Bank declined to comment. Brait and RMB did not immediately respond to requests for comment.

Consol is the leading glass packaging manufacturer in Southern Africa, producing everything from wine and beer bottles to mayonnaise jars, according to its website.

Brait, which bought UK clothing retailer New Look earlier this year in a $1.2 billion deal, has owned Consol since it led a consortium to delist the company in 2007.

Consol has core earnings (EBITDA) of around 1.5 billion

South African rand ($105.81 million) and could fetch around 12 times that, one of the sources said, noting that the ongoing weakness of the South African rand could depress valuations.

Although the unit could be sold, the buyer list for the asset is thin, they added.

In June, private equity firm Apollo won an auction for Verallia, the glass bottle unit of Saint Gobain.

That deal valued the business at an earnings multiple of 7.4 times EBITDA and 12.8 times EBIT. A listing of Consol would be a sizeable transaction for the Johannesburg Stock Exchange,

which has seen six initial public offerings (IPOs) this year raising $305.7 million, according to Thomson Reuters data.

Brait, which is also listed in Luxembourg, is controlled by South African billionaire Christo Wiese.

The vehicle has been on something of an acquisition spree of late. In April it spent $1 billion on a controlling stake in gym group Virgin Active, which was jointly owned by entrepreneur Richard Branson's Virgin Group and buyout firm CVC. Other assets include British frozen food supermarket Iceland.

Glaston closes deal for three FC500™ furnaces UNITED STATES Glaston Corporation has closed a significant deal with U.S based Trulite Glass & Aluminium Solutions for three FC500™ tempering furnaces including iControL Quantum™ Automation and Reporting system and Glaston Care service agreements.

The order is split between the Q3 and Q4 2015 order book. The machines are delivered during the first and second quarters in 2016.

In addition to the FC500™ furnace deal the parties have earlier agreed on major upgrades for two Glassrobots’ machines as well as on other machine upgrades and relocations.

Trulite Glass & Aluminum Solutions is one of North America’s largest architectural glass and aluminum fabricators.

The company manufactures and distributes architectural aluminum, insulated units, mirrors, tempered, laminated, and decorative glass from their 28 locations throughout the U.S. and Canada.

‘It was a true pleasure to meet with Trulite’s top Management at Glass Build America in Atlanta, and hear the obvious excitement they have for the future growth of their operations, and how Glaston plays a significant role in this“, says Arto Metsänen, Glaston Corporation’s President & CEO. “Trulite Glass & Aluminum Solutions is very excited to build on

22

our partnership with a true leader in convection furnace technology.

Glaston continues to raise the bar with industry leading solutions that produce superior optical surface quality in high performance glass products. Along with these investments Trulite is also well underway with 4 other Glaston furnace projects and we look forward to a mutually beneficial partnership. Our success together is based on providing superior quality flat glass products to meet and or exceed our customer’s needs”, says Paul Mahedy, Executive Vice President, Trulite Glass and Aluminum Solutions.

Launched in 2011, the Glaston FC500™ tempering line has gained a solid position on the market.

Glaston Corporation has closed a significant deal with U.S based Trulite Glass & Aluminium Solutions for three FC500™ tempering furnaces including iControL Quantum™ Automation and Reporting system and Glaston Care service agreements. The order is split between the Q3 and Q4 2015 order book. The machines are delivered during the first and second quarters in 2016.

In addition to the FC500™ furnace deal the parties have earlier agreed on major upgrades for two Glassrobots’ machines as well as on other machine upgrades and relocations.

asianglass december/january 2016

Trulite Glass & Aluminum Solutions is one of North America’s largest architectural glass and aluminum fabricators.

The company manufactures and distributes architectural aluminum, insulated units, mirrors, tempered, laminated, and decorative glass from their 28 locations throughout the U.S. and Canada.

‘It was a true pleasure to meet with Trulite’s top Management at Glass Build America in Atlanta, and hear the obvious excitement they have for the future growth of their operations, and how Glaston plays a significant role in this“, says Arto Metsänen, Glaston Corporation’s President & CEO. “Trulite Glass & Aluminum Solutions is very excited to build on our partnership with a true leader in convection furnace technology. Glaston continues to raise the bar with industry leading solutions that produce superior optical surface quality in high performance glass products.

Along with these investments Trulite is also well underway with 4 other Glaston furnace projects and we look forward to a mutually beneficial partnership.

Our success together is based on providing superior quality flat glass products to meet and or exceed our customer’s needs”, says Paul Mahedy, Executive Vice President, Trulite Glass and

Aluminum Solutions.

Launched in 2011, the Glaston FC500™ tempering line has gained a solid position on the market.

NEWS IN BRIEF As a leading company in glass processing technologies, Glaston Corporation is taking a new step with an investment in a California-based nanotechnology company that develops new glass technology solutions. Glaston will acquire 12 per cent of the company’s shares and serve as the preferred equipment partner. In addition, Glaston has agreed on the delivery of engineering resources and equipment to the company in the value of over EUR 2 million. The engineering resources and equipment will be delivered during 2016. The first smart glass production lines related to this new nanotechnology solution are expected to be ready for commercial use in around 2020 at the latest. Glaston will be the exclusive supplier of thin glass heat treatment furnaces with respect to these production lines.

www.asianglass.com

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News

People and Places

Employee milestone seen at SwissOptic China SwissOptic (Wuhan) Co., Ltd., the Chinese subsidiary company of the Berliner Glas Group, reached a new milestone last month by welcoming its 100th employee.

During just the past two years the company recruited 40 new employees.

The Berliner Glas Group is one of the world’s leading providers of optical key components, assemblies and systems as well as high-quality refined technical glass. The system solutions that the Berliner Glas Group designs

and produces for its customers are used throughout the world in selected market segments of the light-using industries (photonics).

When one of the main customers of the Group Company SwissOptic expanded into China, the Management of the Berliner Glas Group decided – in line with the philosophy of the company – to go along and thus set up an assembly and production facility in Wuhan, China – with great success.

Today the production area

CGIF launches education network United States The Ceramic and Glass Industry Foundation (CGIF) recently launched the University-Industry Network—a program that focuses on encouraging schools around the world to align more closely with industry as they continue teaching key concepts in ceramic and glass science. This network provides resources to key professors and undergraduate students, and helps connect students with ceramic and glass industry leaders.

Universities that join the network will have access to programmatic resources aimed at ceramic and glass education, and funding will be available to help support programs and initiatives to give undergraduate students more opportunities to develop an interest in the ceramic

and glass fields.

“The University-Industry Network is designed to provide students with richer handson experiences in the ceramic and glass fields,” says CGIF Development Director Marcus Fish. “It’s vital that these programs get the funding and resources they need to help attract the next generation of professionals to work in the ceramic and glass industry.”

The network is also designed to connect professors and students to industry partners who are passionate about recruiting the next generation through lectures and workshops, plant tours, donation of equipment and supplies, and internship/career opportunities to students who have joined the network.

Fuyao Exec discusses growing ops United States In a Nov. 14 article from Automotive News, John Gauthier, the president of Fuyao Glass America, discussed the company’s rapidly growing North American operations. Last year, Fuyao purchased the Mount Zion, Illinois, float plant from PPG Industries and invested $200 million to restart one of the two glass furnaces at the plant. Additionally, the company is investing $400

24

million to convert a former General Motors assembly plant in Moraine, Ohio, into an automotive glass fabrication plant, according to the article.

“Our timing is good,” Gauthier said in the article. “There is a real capacity shortage with glass in the U.S. right now. We'll suck up some of the excess demand that the other companies are struggling to meet.”

asianglass december/january 2016

in Wuhan amounts to 1,850 square meters where many assembly activities are realized, especially for customers in the field of metrology and medical technology.

The Wuhan site is an important part of the Berliner Glas Group.

The customers of the Berliner Glas Group are in contact with and get their technical support from the Business Units in Germany or Switzerland, which are dedicated to specific application markets. In this way the customer receives an

optimum solution – being it a hightech or a price sensitive commodity product – out of one familiar source and at the same time benefits from competitive prices on a global market. SwissOptic Wuhan has established a wide network of domestic suppliers, has an excellent equipment infrastructure as well as state-ofthe-art measurement equipment and guarantees to adhere to the quality standards set by the Berliner Glas Group Companies in Switzerland and Germany.

Glaston to streamline operations Asia/South America Glaston concluded the sale of its pre-processing machine business in June 2015. To streamline its operations, Glaston has begun adjusting its capacity to its new structure and the current market situation.

Measures will mainly be taken in Asia and South America.

Pre-processing units have been operationally restructured due to the sale of the pre-processing machine business. The main impact is in the Tianjin factory in China, where pre-processing machine assembly has stopped.

In South America, production capacity has been adjusted to the current market situation.

These measures are expected

to yield EUR 1.3 million in annual cost savings. The profitability improvement measures will affect some 45 people in total in Asia and South America. They will be implemented by the end of 2015 and the savings will take effect from the beginning of 2016 onwards. The estimated one-off costs related to the measures are EUR 1.2 million, of which EUR 0.5 million with cash flow impact.

One-off costs of EUR 0.3 million has been booked in the two previous quarters. Approximately EUR 0.9 million will be booked in the final quarter of 2015.

In the future, Glaston will focus on high-technology heat treatment and service.

Lattimer appoints engineering manager United Kingdom Lattimer are pleased to announce the recruitment of an Engineering Manager to support and accelerate the introduction of new manufacturing methods, ensuring that Lattimer remain as a leader in the manufacture and supply of IS variable equipment for the glass container manufacturing industry.

Doug served his engineering apprenticeship and gained his HNC Qualification in Engineering, specialising in CNC machining.

He has progressed from the running, setting and programming of CNC machine tools to holding senior management roles in both

Engineering and Manufacturing.

Doug has also spent time managing his own engineering company an experience that has equipped him well to understand the many challenges faced by Lattimer.

We are fortunate that Doug has agreed to join us here at Lattimer and are confident that his skills and experience will very quickly make him a valuable asset to the company, helping us continue our improvement journey. We would like to take this opportunity to wish him every success in his new role.

www.asianglass.com

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News

Batch

Market stumbles as predictions falter World // Soda Ash In Europe, falling demand particularly from the CIS region has left the continent in a situation of oversupply, despite significant cuts to soda ash production capacity.

In the CIS, Russia saw demand slip by 2.4% in 2014, forcing local plant operating rates down to just 70% of capacity, while the market in Kazakhstan slumped by 18% last year and is likely to remain weak, Morrin said.

In Ukraine, which historically had three soda ash plants, one closed in 1998 and another shut its doors in 2009, triggered by the global recession. Russia’s annexation of Crimea last year contributed to severe disruption to transport routes used by Crimea-based CrimSoda and Group DF. Industry observers consider

that soda ash prices in Ukraine to be around $300-400/tonne on a CFR basis – significantly higher than averages of $225-250/tonne for Western European delivered values.

On a volume basis, Western Europe is leading the decline, with weaker glass and chemicals markets leading to a demand drop of 900,000 tpa soda ash on prerecession levels. This is followed by the CIS, where demand has fallen by 450,000 tonnes since 2008 and finally Central Europe, which as seen consumption contract by a relatively modest 30,000 tonnes on the same comparison.

Collectively, this means European demand is down by 1.4m tpa although capacity has fallen even more steeply, by 1.9m tpa, from the market peak prior to

Contract price rises on the cards for 2016 United States // Soda Ash US soda ash contracts for 2016 supplies are being settled at an average increase of $5/ ton, buyers and sellers said at the end of November.

One producer said it had closed about 45-50% of its supply contracts on a volume basis, but that its two largest contracts were still not closed.

The producer said this was typical, but added that most of its contracts would be settled by the middle of December.

Four US soda ash producers in July separately announced price increases of $11-12/ ton for 2016 soda ash supply contracts.

A large buyer said that it was seeing contract prices settle at less than half of the previously announced price increases. The buyer's overall demand is down because half of its sales are overseas, where a strong US dollar has constrained export volumes. It added that domestic demand is pretty good.

The US Geological Survey (USGS) released its 2014 Minerals Yearbook for soda ash on 16 November. The

26

report states that the US soda ash industry set records for production and exports in 2014 - both of which increased for the fifth consecutive year. US production of natural soda ash from California and Wyoming was 11.7m tonnes in 2014, and exports totaled 6.67m tonnes.

Based on about 14.5m tonnes/year of total nameplate production capacity, the US soda ash industry operated at 81% of total capacity, the report said.

Apparent consumption in 2014 at 5.11m tonnes was up slightly from 5m tonnes in 2013. The distribution of soda ash for domestic consumption by end use in 2014 was: glass, 47%; chemicals, 30%; soap and detergents, 7%; distributors, 6%; flue gas desulphurisation, 4%; other, 4%; pulp and paper and water treatment were 1% each, according to the report.

US soda ash producers include Tronox, Tata Chemicals, Searles Valley Minerals, Ciner Resources and Solvay Chemicals.

asianglass december/january 2016

the 2008 collapse.

Although European Union glass demand has recovered to some extent since then, production levels of 3.7m tonnes are still 10% lower than they were in 2007.

In Asia, however, the predictions are still more optimistic. Excluding China, many consider said that Asia remains full of potential.

The region as a combination of developed and developing countries, many of which are exclusively dependent on imports, which have seen supply affected by recent capacity closures in Japan and Australia – only partially offset by the opening of a new soda ash plant in Vietnam.

The Indian market for soda ash has arguably the greatest potential to expand in the near term, many consider, with the country’s

relatively robust economy, its gap in housing and its rapidly escalating wine and automotive industries – all expected to support rising glass demand.

Indian soda ash consumption currently stands at around 2-2.5kg per capita, compared to 28kg per capita in the US, illustrating the room for growth. IHS estimates that Indian soda ash demand in 2015 will be 3.4m tonnes, compared to 3.1m tonnes domestic capacity.

Despite its reliance on imports to make up the shortfall, the country has imposed import duties ranging between $2.38/ tonne and $38.79/tonne in an effort to protect its domestic soda ash industry.

Project to increase construction glass recycling Europe // Recycled glass British Glass and GTS have started work on a 4.5-year 9m euro European project to recycle glass from buildings.

Most of the glass from buildings is currently used as aggregate, or is sent to landfill. British Glass is investigating how more glass from buildings (windows and architectural panels from refurbishment and demolition projects) could be recycled back into glass. It’s also investigating the addition of waste glass to ecocement and eco-concrete.

According to British Glass, each tonne of cullet used saves around 246kg of CO2 emissions.

Although it’s technically possible to recycle glass from buildings, up to now it has been difficult to prevent contamination and make the system financially viable, it says.

The “FISSAC” project will map the barriers, find best practice and develop recommendations to help make the financial case for recycling building glass back to glass. For situations where glassto-glass recycling is not feasible, the project will investigate using glass as an additive to cement and concrete – including full

scientific analysis and testing of the materials and pilot builds.

“Finding ways to use more recycled glass reduces the amount of energy needed to make new glass – beneficial for the environment and for manufacturers because it reduces energy demand,” explained British Glass CEO Dave Dalton.

“Also finding other uses for waste glass prevents glass from going to landfill and creates secondary markets for this extraordinary material.

British Glass is pioneering a win-win relationship between manufacturing and the environment.”

Valli Murthy, British Glass’ Environmental Advisor commented: “We know it is possible to successfully recycle building glass because it has been done in the past.

“If we can make recycling easier and more commercially viable, this will benefit much of the supply chain and the environment. We can only achieve this through collaboration, and we welcome companies across Europe with interests in construction, demolition and recycling to work with us.”

www.asianglass.com

News

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News Anaylsis

News

28

BIPV: kick-starting in 2016?

H

igh costs, a lack of integration possibilities and interest on the part of architects means that BIPV (Building-Integrated Photovoltaics) is still a niche application of negligible importance measured by total PV installations worldwide. “It is a side line of the PV industry,” explains Gaëtan Masson, Vice President of EUPVTP. Of the just under 40 Gigawatt solar power output newly installed in 2014 worldwide, only about one Gigawatt was accounted for by BIPV – this means the market share of BIPV is as low as 2.5%. One obstacle to market success is the relatively high costs: building laws and technical requirements vary widely from country to country and among regions. This is why modules are customised in relatively small lots locally for local architects, Masson explained. And this used to make the production of higher quantities and economies of scale difficult.

The BIPV industry should focus more on competitive market segments, in order to profit from economies of scale like conventional PV. The EUPVTP also feels that the political framework has to improve in order to help this industry take off. At present, however, countries are rather “back-pedalling” when it comes to state aid for solar installations. In France, for example, one of the few countries with special subsidies for BIPV, the additional support for in- roof systems is scheduled to end in late 2015.

Even though the circumstances for BIPV are difficult – on-going innovations raise hopes for an imminent breakthrough of this technology. Modules are becoming more efficient and available in ever more designs. Architects appreciate this newly gained scope for design. “We feel that business is picking up,” says Bernd Sprecher, General Manager of Manz CIGS Technology. This company develops production lines for thin-film modules based on copper, indium, gallium and selenium. Manz manufactures BIPV modules in various sizes with a photo-active CIGS layer. Previously low efficiency rates have now changed thanks to optimised manufacturing processes.

Manz’ CIGS modules achieve nearly 15%

asianglass december/january 2016

efficiency and in the long run as much as 20% is possible.

For the time being, however, the classic option is still unrivalled in terms of efficiency rates – top modules from mono-crystalline silicon already achieve over 20%. This high degree of efficiency is also a key reason why BIPV specialist ertex solartechnik, a subsidiary of glass producer ertl glas from the Austrian town of Amstetten, predominantly uses silicon cells for its modules. In order to meet the architects’ high demands, ertex solartechnik has joined forces with specialists from the architecture, glass and PV industries to develop modules that are novel in terms of their looks. “Now architects and façade planners have a photovoltaic module at their disposal that fulfils the highest demands in terms of appealing looks and design freedom – like conventional façade elements – but forms a symbiosis with solar power generation,” explains Dieter Moor, Marketing and Sales Manager at ertex solartechnik.

According to Moor, the different options result from the possibility of patterning and colouring each layer of the module – from the front glass surface to the back sheet. In this way laminated safety front glass can be designed with various patterns and degrees of transparency, printed glass backs, coloured front glass and encapsulation films, patterned glass fronts, coloured and semitransparent solar cells as well as coloured solder connectors.

Architects used a child day-care centre complying with PlusEnergy house standards in the Hessian town of Marburg to demonstrate what is already feasible using state-of-the-art BIPV panels. In order to “envelop” the complex building with fitting modules, they took to triangular elements with high-performance mono-crystalline silicon cells made by ertex. The Austrianmade modules are also characterised by their uni-coloured appearance. To produce this effect the otherwise silver-coloured busbars and highly reflective solder connectors between the individual cells were printed black. As a result, the surface is uniformly black and the elements do not look like highly efficient power generators.

Thanks to new semi-conductors architects can look forward to even more

freedom to design with solar technology.

Dresden-based company Heliatek and Belgian flat glass producer AGC Glass Europe are working on BIPV elements that incorporate organic photovoltaic films of different dimensions, colour graduations and levels of transparency in construction glass. Furthermore, solar films in organic material promise to keep production costs low since there are sufficient amounts of tiny photoactive molecules (oligomers) available and can be precipitated onto the film using an efficient role-to- role process. This is far less labour-intensive than the production of crystalline silicon cells whose “blanks” – the wafers – must first be diced out of a solid block before being processed further into cells.

These solar “light-weights” obviously go down very well in the construction industry.

Solar researchers have other cards up their sleeve for BIPV: cells in perovskite.

This mineral is just easy to process and just as economical as oligomers but comes with greater efficiency potential. American scientists proved almost 20% efficiency in lab tests and they produced a perovskite layer as thin as one millimetre by vapourdepositing organic molecules and lead crystals on glass. The cell produced as much electrical energy as the siliconbased cell that is 150-times thicker. If the industry succeeded in manufacturing perovskite cells for BIPV, the technical and commercial obstacles would be overcome.

This is why the EU is promoting the further development of this technology with an investment of some Euro 3 million as part its “Horizont 2020” programme.

The concrete objective of Got Solar (as the research project was dubbed), which involves cell developer Dyesol as well as six European research institutes, is the development of a cell-sealing technology fit for industrial production.

After all, perovskite suffers from the same restrictions as Heliatek’s oligomers: it is extremely sensitive and must be protected especially well against outside influences.

Dyesol spokeswoman Eva Reuter explains: “It’s all about increasing their stability.” The company wants to start mass- producing perovskite cells in 2018. To this end a new factory with 600 megawatt annual capacity is planned in Turkey.

www.asianglass.com

ANALYSIS: Container Glass

Drinking in the sun North East Asia feels the rise of PET

Yogender Malik discusses how the rise of PET in the mature beverage markets of Korea and Japan continues to pose a challenge to container glass makers.

W

ith one of the highest per capita income and per capita consumption of beverages ( both alcoholic and non-alcoholic), the North East Asian region ( comprising Japan and South Korea) is one of the most technologically advanced and largest container glass markets ( on per capita usage basis) in Asia.

However, alternative forms of packaging in the beverage segment has challenged the container glass industry of these two countries due to lifestyle changes and modern retails, both of which have worked in favour of PET packaging and aluminum cans. Container glass producers are striving hard to win back their shares in the beverage market by introducing innovative products such as lightweight bottles and catchy shapes and designs.

Industry overview

Considered as one the most technologically advanced container producing region in Asia, both Japan and South Korean container glass production is dominated by a select group of domestic producers.

Japan, which has been well ahead of its Asian peers in terms of technology, sophistication of design of container glass and high quality requirements by end consuming segments has about 10 container glass producers, which dominates the container glass production for beverage industry. A marked shift in Japanese container glass production and demand is that share of imports in the country is on a continual rise due to low cost production by some of the countries in its neighborhood. Apart from pure imports some

30

asianglass december/january 2016

Japanese companies which are either JV partners or are technology suppliers to foreign container glass producers are sizable importers of container glass in the country.

South Korean container glass industry much like Japanese industry is very technogically advanced, however, Korean producers are some way behind than their Japanese counterparts in many aspects of container glass production. In Korea there are eight container glass producers, four of which are significant producers of container glass for beverage industry. Like Japan, South Korea too is a net importer of container glass predominantly from China, due to high production cost arbitrage between the two countries.

Beverages in Japan

With a sales volume of more than ¥ 10 trillion, the Japanese beverages sector is one of the largest and most attractive beverage markets in the world. Had it not been for the alternative forms of packaging, it would have been a haven for container glass industry.

The Japanese market for beverages is an oligopoly, controlled – with the exception of only a few segments – by the industry´s giants Asahi, Kirin, Suntory, Sapporo and Coca-Cola.

Starting from a completely calorie- and sugar-free Coca-Cola product in 2005, currently all market segments are developing new offers for health-oriented consumers. This also holds true for the beer market. Several Happoshu (low-malt) beer products have been marketed as “health drinks” for quite a while. Only in case of wine/sparkling wine, mineral water and liquors foreign producers play a bigger role than just filling niches.

www.asianglass.com

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ANALYSIS: Container Glass

Demand drivers

Beer is the largest demand driver of container glass in Japanese beverage industry. With an annual consumption of about 6 million kiloliteres, beer consumption volume in Japan is 7th next to China, US, Brazil, Russia, Germany and Mexico. Though on per capita basis, Japan ranks somewhere in 40’s, which indicates a great potential for the growth of beer industry.

Despite, being a country where aluminum cans finds highest penetration in beer market in Asia, Japanese beer market is one of the largest drivers of container glass industry due to its sheer volumes.

Though, in last few years the growth in beer consumption hasn’t registered a brisk growth. In addition to the young generation’s avoidance of alcohol, avoidance of beer over the past few years has been as a result of demand flowing into low-alcohol beverages such as chuhai (shochubased beverage). In spite of this, highend beer called the premium beer is starting to gather attention and the domestic beer market has been satisfactory after 2012.

Like its alcoholic beverage industry, Japan’s non alcoholic beverage industry is a force to reckon with, both in terms of volume and verities.

However, sales of carbonated beverages ( which are the largest demand driver of container glass in non alcoholic beverage segment) have remained dull in last few years. Whilst sales of soft drinks are largely related to summer temperatures, the summer of 2014 and to some extent of 2015 were the mildest for five years. The milder summer weather adversely impacted sales of soft drinks in both the years, especially sports drinks and functional bottled water, adversely impacting the container glass demand.

Container glass Japan

As mentioned at the outset of this article, Japanese container glass industry is one of the most technologically advanced container glass industry in the Asian region. Besides, adhering to state of the art production techniques, container glass industry in the country has also championed the cause of lightweight bottle production.

There is a heavy emphasis on reuse and recycling of container glass bottles in the country. All the leading container glass producers claim to use more than 30 % of cullet in their batches for container glass production.

However, despite the best practices deployed by container glass producers, share of container glass in the overall packaging pie has continued to decline for a long time due to certain advantages of alternative forms of packaging in beverage industry. Modern retail and on the go consumption in the beverage industry has further strengthened the cause of alternative forms of packaging in beverage industry as handling issues and fragility of container glass has worked to the disadvantage of our industry.

Nihon Yamamura Glass Company

Claiming to have an estimated 40 % share of domestic container glass industry, Nihon Yamamura Glass is largest container glass producer in Japan.

Established in 1914, Nihon Yamamura is an integrated company that operates in four business segments. The Glass Bottle segment manufactures and sells various glass bottles under the names V-series and u-COAT, as well as ecology

32

asianglass december/january 2016

bottles, ceramic texture bottles and selfadhesive bottles. The Plastic Container segment manufactures and sells plastic bottles and caps. The Logistics-related segment is involved in the storage, delivery and premise operation of its products. The New Glass-related segment manufactures and sells glass for plasma display panels (PDPs), glass for electric devices, glaze for alumina substrates and glass for sealing, among others With three container glass production plants in Japan the company offers more than a 1000 verities of glass bottles.

According to Nihon Yamamura “Our Glass Bottle Company has established a variety of sophisticated quality assurance technologies, including production information systems for overseeing total production lines, glass mass control technologies, automatic mold temperature control technologies, parting agent (oil coat)-free technologies, composite strength inspection devices, and fully automated dimension and volume measuring devices.”

The company claims to offer optimal production systems to meet customer demands ranging from small- to large-scale manufacturing swiftly, reliably and at reasonable prices Besides, being the largest container glass producer, Nihon Yamamura Glass is also one of the leading technology suppliers to other container glass producers. Till date, the company has supplied technology to a number of regional container glass producers. Some of the prominent Asian container glass producers which have acquired technology from the company include San Miguel Yamamura Asia Corp. in the Philippines, San Miguel Yamamura Haiphong Glass Co., Ltd. in Vietnam, Siam Glass Industry Co., Ltd. in Thailand, and Kumbi Corp. in South Korea. The technical assistance ranges from furnace operation technology, lightweight bottle production technology, and quality control.

Toyo Glass

With a history of more than 125 years, Toyo Glass is a leading manufacturer of glass containers in Japan from its two plants in Shiga and Chiba. The company claims that “ The extensive know-how, technology and engineering in the glass manufacturing from raw materials to finished products are our valuable assets.” Besides, container glass production, Toyo Glass also provides engineering services to the glass industry such as a plant layout, a furnace design and process improvements in the fields of batch mixing, melting, forming, inspection and packing.

In addition to container glass production, Toyo Glass’s subsidiaries are also leading producer of tableware glass ( Toyo Sasaki Glass Company Limited) and technology suppliers ( Toyo Glass Machinery Company Limited) for container glass production.

Isizuka Glass

Isizuka Glass is one of the top five container glass producers in Japan. Besides, container glass its subsidiaries are also leading producer of tableware glass and ceramics. The company operates three container glass production plants with a combines output of 900 TPD of container glass . Its plants are located in the Kanto region (Tokyo plant), Chubu region (Iwakura plant) and Kinki region (Himeji plant).

www.asianglass.com

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ANALYSIS: Container Glass

Size of domestic Japanese Beer Market (in Million Cases) Year

Beer

Happoshu

New Genre

Total

2014

227

65

170

462

2013

221

62

164

447

2012

220

63

155

438

2011

223

65

151

439

2010

228

70

145

443

2009

239

84

136

459

2008

267

92

124

483

2007

278

103

104

485

2006

301

118

78

497

2005

298

127

76

501

2004

319

154

42

515

2003

347

178

0

525

South Korea

Like Japan, beer accounts for a major consumption of container glass in South Korea. Though, in volume terms South Korean beer industry is not as big as that of Japan, but South Korean drinkers are far ahead of their Japanese counterparts in terms of per capita beer consumption. Overall beer sales in Korea totaled about $4.8 billion in 2014. Beer remained the most consumed alcohol beverage in Korea by accounting for a 45.7 percent of overall alcohol beverage sales in the market in value (or 59.5 percent in volume). Beer sales grew 15.6 percent in value (or 20.0 percent in volume) between 2011 and 2014. Domestic Korean beer continued to dominate the market as indicated by the fact that locally brewed beer accounted for a 91.8 percent of overall beer sales in value (or 95.6 percent in volume) in 2014. Local beer industry has been driven by two large-scale local breweries over the years, which offer an assortment of value-oriented products.

South Korean consumption of non alcoholic beverages ( on per capita basis) is far more than many Asian countries. However, in this segment container glass industry has been a loser as year-on- year, the share of glass bottles in this category has declined. According to Asian Glass research, glass bottles forms just a 12 % share in this category. It is noteworthy that share of glass bottles stood at 43 % in 2000 in the non-alcoholic beverage category. Though, there are certain niches, where penetration of glass bottles for non alcoholic beverages

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asianglass december/january 2016

Leading Japanese container glass producers for beverage industry Company

Location

Toyo Glass

Tokyo

Seisho Company Limited

Chome

Hakuyo Glass Company

Minato- Ku

Nihon Taisanbin Glass Company

Ogaki

Osaka Seiko Glass Company

Osaka

Daisho Glass Company Ishizuka Glass Company Yamamura Glass

Tokishima Naruto Aichi Hyogo

Japan - Composition of combined beer/happo-shu/new genre market by packaging type Packaging Medium

Market Share ( in %)

Container Glass

10 %

Aluminum Cans

71 %

Others

19 %

is still high, but number and volume of these sub-segments is on a continuous decline because of popularity of PET and can packaging.

South Korean containers

Dominated by eight mid and small sized container glass producers, South Korean glass industry has been adversely impacted by the quantum of glass bottles import in recent years. Changing lifestyle, on the go consumption and rising disposable income too have had a negative effect on the container glass consumption in the country.

Container glass industry for beverage packaging is largely dominated by

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ANALYSIS: Container Glass

Kumbi Corporation, Techpack Solutions and K C Materials Company. Imports of glass containers forms about 14 % of the country’s overall demand of glass containers.

Kumbi Corporation

Kumbi Corporation manufactures and sells glass bottles in South Korea. It primarily offers flint glass bottles in various shapes, wide-mouthed bottles, and small bottles. The company was formerly known as Jin Ro Glass Co., Ltd. and changed its name to Kumbi Corporation in April 1992. Kumbi Corporation was founded in 1966 and is based in Icheon, South Korea Kumbi operates two container glass plants in South Korea. Company’s Icheon based plant has one melting furnace capable of producing 170 tons daily with two 2 IS forming machines, while its Onyang Plant has two melting furnaces with a capacity of 220 TPD of container glass.

Established as Suyu Glass in 1966 with technical assistance from Japanese container glass and technology provider Nihon Yamamura Glass, Kumbi Corporation has emerged as one of the most important container glass supplier to country’s beverage industry. Kumbi supplies glass bottles to most of the tier I and tier II beverage companies in the country. Besides meeting the container glass demand from beverage industry, the company is a significant supplier to cosmetics ( its sister concern Kumbi Cosmetics being a driver for consumption of cosmetic glass container) and pharmaceutical industry.

Kumbi Glass’s first container glass plant at Icheon is located in Kyonggi province and produces 560,000 bottles of blue glass per day. This plant predominantly produces 360 ml glass bottles for soju liquor. In 1990’s the company decided to put second container glass in the country. In 1991, the first phase of this new plant Onyang was established with a daily production capacity is about 100tons.

In 1993, another furnace with an installed capacity of 120 TPD was installed at this plant, taking its overall installed capacity to 390 TPD. Kumbi Glass’s first plant at Onyang is equipped with a production line exclusively for flint glass bottles. The plant is capable of producing 300,000 bottles of 360ml. liquor bottles daily with the help of three lines. Company’s second container glass plant at Onyang has an exclusive production line for colored glass bottles with a melting capacity of 120 tons.

Techpack Solutions

Claiming to have about 40 % share of domestic container glass industry, Techpack Solutions, founded in the mid-1950s, is among largest container glass producers in the country. The company makes a wide range of glass containers for the beverage industry. Techpack’s container glass facility is located at Kunsan City in Chollabuk province of the country. Besides, container glass, Techpack is also a leading producer of aluminum cans for beverage producers. Besides, domestic market Techpack Solutions has a tie up with leading Egyptian container glass producer, Middle East Glass Company Limited.

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asianglass december/january 2016

Formed as Haenam Glass Company and later acquired by large Korean conglomerate, Doosan Corporation, the company was named as Techpack Solutions in 2008 after spin off its unit from Doosan Corporation. In this arrangement a private equity firm, MBK Partners had bought its 100 % stake from Doosan Corporation for 392 billion Korean Won ( $ 369 million). In another change of management in August 2014, MBK Partners sold Techpack Solutions to tuna can maker Dongwaon Systems for 250bn won ($243m). MBK Partners was trying to sell the Techpack Solution for more than a year.

Techpack Solutions is striving towards manufacturing efficiency. In its bid to lower the overall production cost and enhance productivity, it invested in an integrated oxy- fuel solution from leading gas solution provider Air Products in August this year. This is second project of Air Products’ second project to support Techpack Solutions to reduce emissions and improve energy efficiency and productivity. The integrated solution encompassed ’ oxy-fuel combustion system, including oxy fuel burners and an automatic flow control skid. The company will also install a vacuum swing adsorption oxygen generator to supply on-site oxygen used to power the oxy-fuel burners for melting glass.

Commenting on the development, Young-Min Kim, technical team general manager of Techpack Solutions says “We have experienced a successful full conversion from air-fuel combustion to Air Products’ integrated oxy-fuel solution to realize the environmental, operational and productivity benefits.”

K C Glass & Materials Company-

With an installed capacity of 200 TPD from its two furnaces, K C Glass & Materials Company is a leading South Korean container glass producer for beverage markets.

Earlier knows as Ansung Glass Industrial Company, KC Glass traces its roots to 1971, when it commenced operations with 30 TPD capacity in Seoul. After a couple of acquisitions and new factory start ups, Ansung was renamed as KC Glass & Materials Company in 2013.

According to KC Glass “From the out-set of starting the glass business in 1971, KC Glass & Materials has set up its position as one of the nation’s best glass bottle companies, equipped with state-of-the-art facilities and skills. We have made a huge investment in equipment in order to produce only the best quality products and have also improved its quality through technical development. Our state-of-the-art factory in Chunan has produced the best quality products and enhanced the company’s reputation, this has paved the way for the company to become one of the best glass bottle production companies.”

Leading container glass producers in South Korea Company

Location

K C Material Company

Cheonan Si

Young Il Glass Industry Company

Hwaseong

Kumbi Corporation

Seoul

Ilhawa Company Limited

Gyeonggi do

Hite Holding Private Limited

Seoul

Dong A Glass Company

Anyag City

Hyun Dee Glass

Seoul

Doosan Glass Company

Seoul

KC Glass & Material Container glass output over the years Year Glass Output TPD

2014

2013

2012

2011

45,984

47,024

48,485

49,409

126

129

132

135

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ANALYSIS: Russia

Designing advances in structural glass G. Vasilchenko-Malishev, Malishev Engineers, discusses some of the most exciting new developments involving architectural glass in Russia…

T

his article will describe the design, detailing and construction 10 architectural features using structural glass with focus on 2.4m, prestressed stacked glass stella for the city of Omsk, Russia.

In addition, we will cover design and construction of a 24m longx7m wide lighting feature in St Petersburg, Russia, with use of Gorilla Glass, which would be first use of this innovative material in this country.

Omsk 300 aniversary steel and glass features project

As part of the forthcoming 300th anniversary celebrations of the Siberian city of Omsk in 2016, the city administration decided to refurbish and renovate the existing Valikhanov street in the city centre, which cuts through historic parts of the town, connecting it to the river Irtysh. The refurbishment project of this street, which is nearly 1km long, involved major work to existing infrastructure as well as the design and construction of several steel and glass features (“crystals”) to be scattered along the street as if by an imaginary “wizard”.

Due to complex and geometric form the client invited Gennady VasilchenkoMalishev and his team to help, based on their experience with unusual structures in the country previously.

In total there were 10 steel and glass “crystals”: • 3 canopies to the major road crossing, each measuring approximately

5.5m wide by 12m long, • 5 information kiosks, each measuring approximately 3m wide by 3m long

and 3m tall, • 1 large (12m wide, 9m tall), which became de facto local “arcs

de triomphe”, • Stacked glass sculpture, aka “stella”.

Loading criteria adopted for the design of the Omsk features Load type

Load

Glass self weight

0.5кПа

Snow load

+0.85 кПа -1.2 кПа

Wind Load Climatic loadings External air temperature in the summer, tew

+26OC

External air temperature in the winter, tec

-35OC

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asianglass december/january 2016

Figure 1 Canopies General arrangement drawing and typical glass detail

Properties of structural glass adopted in the design

Mechanical properties adopted in the design were based on prEN-13474- Glass and glass structures, as follows: Table 2 Mechanical properties of glass, based on prEN-13474 Glass type

Characteristic strength (МPa)

Annealed (float) glass

45

Thermally toughened

120

Thermally strengthened

70

Density (ρ) = 2,500 kg/m3 Young’s modulus (E) = 70,000 МПа Coefficient of Poisson (μ) = 0.22

3 canopies 5.5m wide by 12m long

Due to “broken” overall geometry which couldn’t be rationalized (we tried!)

3 similar style but somewhat different from each other shapes resulted in individual design for each of them, measuring roughly 5.5m wide and 12m long. Each canopy comprised of around 300 stainless steel tube elements and 200 glass cladding panels (all different size). As a result each entrance canopy was a effectively unique free form grid shell.

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ANALYSIS: Russia

the future

Figure 2 Canopies, screenshots from the model: 1) glass model 2) steel frame 3) node analysis, 4) glass panel design

Information kiosks, 3m wide by 3m long and 3m tall

Similarly to canopies, 5 similar style but different shapes kiosks resulted in individual approach, measuring roughly 3m wide and 3m tall. Structural concept is based on grid shell idea using flat stainless steel plates of 15mm thick with only one bolt connection through the glass hence lateral rigidity is achieved by combination of steel frame and hybrid mechanical-bonded glass fixings.

Figure 3 Kiosks from 3d surface model to fabrication drawings

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december/january 2016 asianglass

39

ANALYSIS: Russia

Figure 4 Kiosk Type 1, general arrangement model (left), Laser scan of the assembled structure

Figure 5 Example of dynamic lighting at night time

Big fountain (12m wide, 9m tall), aka local “arcs de triomphe”

Out of all structures big fountain obviously was the most complicated, not only because of it’s size but mainly due to complex, irregular geometry which was required by the architect. On to top of all that, the structure had to function as a fountain in the summer as well as being subject to fairly high wind loads and extreme temperature fluctuations.

10.6t stainless steel frame structure, clad with 204, 6mm thick mirror polished stainless steel pan-els (6.6t) as well as 86 laminated glass panels were used.

Particular attention in our design was dedicated to construction tolerances for the big fountain, where 3d laser scan wasn’t available to us due to tight program. Hence tighter fabrication tolerances were required where clad-ding panels were cut to theoretical size provided by us.

Installation of panels went very quickly and fitted in very well to our delight, meaning that fabrication and installation tolerances were very good.

40

asianglass december/january 2016

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ANALYSIS: Russia

Figure 6.1 finished structure, 6.2 3d model, 6.3 panel with fixings layout 6.4 typical fixing

Stacked glass sculpture, aka â&#x20AC;&#x153;stellaâ&#x20AC;?

At the start of the Valikhanov street, client wanted to do an all glass sculpture, inspired by our previous project, Pompano Park, Florida, USA,presented here at GPD in 2007, using self supporting dry stacked prestressed glass.

Figure 7 Pompano park, dry stacked glass water features, Florida, USA, 2007 However this time, being outside, on top of self weight load feature had to withstand climatic load of temperature variation of nearly 80 degrees as well as other loads. We believe that this is first time ever use of prestressed glass structure externally in Russia.

Based on detailed analysis special titanium tube was used to prestress the glass which allowed to reduce induced thermal stresses significantly. Special software allowed us to produce cutting schedule for exactly 300 glass and steel plate elements to symbolise triple centenary

Figure 8 General arrangement isometric and section through dry stacked feature, Omsk-300

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asianglass december/january 2016

Figure 9 3d solid modelling analysis (left), cutting schedule for steel and glass (right)

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Lighting feature for restaurant “Leningrad”, St Petersburg

The project involved design and construction of a top floor lighting feature, measured approximately 24m long and about 7m for the refurbished building in St Petersburg, Russia.

The feature is suspended from the main steel frame structures (welded steel beams with a pitch of about 4.8 meters) in 8-points, using a stainless steel hanger bars.

Due to severe restrictions of the newly imposed loads onto the existing steel structure, from early concept stage various cladding materials were considered. Due to it’s unique combination of strength and lightness as well as stiffness and thermal expansion characteristics, cold bent «Gorilla Glass” was chosen as a cladding material, which is first of it’s kind application in Russia and possibly beyond.

Step crossbeams is 1.63m and longitudinal as indicated in the drawings. The construction is divided into mounting blocks with a joint in the middle of the longitudinal beams.

Figure 10

44

asianglass december/january 2016

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TIAMA is the combination of two major players of the hollow glass inspection market with truly similar paths and a half-century experience: SGCC and MSC. In 2008, both companies joined forces under the umbrella of the TIAMA group. In 2011, all the external communication and more generally the corporate identity started carrying the double branding “TIAMA – msc & sgcc”.

This new corporate name responds to a will for identity simplification and brand strengthening.

The visual brand is now just “TIAMA”, consequently the company changes its email addresses from “@msc-sgcc.com” to “@tiama.com”. Both of these email structures will allow you to reach all of your TIAMA contacts during our transition period.

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ANALYSIS: Russia

ELECTROGLASS Adopted properties of “Gorilla Glass”

Based on received information from the manufacturer, following mechanical properties of glass were adopted in the design.

Sinlge sheet of Gorilla Glass for safety reasons was strengthened with Density

Young’s Modulus

Shear Modulus

кг/м³

MPa

MPa

panel 1мм

2420

71500

29600

0.21

800

panel 2мм

2420

71500

29600

0.21

800

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Poisson ratio Characteristic strength

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Conclusions

The Omsk-300 project resulted in a family of steel and glass structures, in extreme weather conditions. First application of the dry stacked glass feature externally in Russia, designed to withstand temperatures between -35ºC to +35ºC for a 300 anniversary of Omsk.

First ever cold bent application of “Gorilla Glass” in Russia, resulted the total weight of the feature structure was 2.1t of aluminium, and total weight of “Gorilla Glass” was just over 400kg, taking the total weight of the whole feature to around 2.5tonnes, or just over 15kg/m², which more than satisfied the requirement of the client on total weight and laid foundations to development of the new super lightweight structures in the future.

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ANALYSIS: Solar

Sunny outlooks Egyptian solar turns a corner

A report released to AG discusses the potential of Egypt’s solar sector, and the resultant positive outlook for the specialist glass suppliers of the region.

E

gypt is the largest non-OPEC oil producer in Africa and second largest natural gas producer. However, it is also the largest oil and natural gas consumer in Africa. Natural gas and oil are the primary fuels used to meet energy demand, and accounted for 94% of total energy consumption in 2013, whereas Egypt’s renewable energy output is currently only 1% of its total energy supply mix.

Given this context of significant reliance on fossil fuels, the Egyptian Government is keen to endorse renewable energy programmes and projects in order to meet growing annual demand and free up its natural gas reserves for more profitable uses.

Given its ideal location in the “sun- belt” zone, an area of optimal solar energy production conditions including high sunshine and low cloud cover, solar is an obvious choice for helping Egypt achieve its renewable energy goals. The country enjoys direct solar radiation between 2000-3200 kWh/m2/year across its large landmass and as such the opportunities for the expansion of solar projects are substantial.

Admittedly, there remain a number of legislative and regulatory issues that solar companies are calling to be addressed, but the levels of both foreign and domestic investment in solar energy production projects are rapidly increasing.

Benban 100MW Solar PV Project

Terra Sola 3.5 GW Investment Plan

• Project Investment: $500-$750 million • Key stakeholders: Access Power, EREN • Project initiation: Jan 2015 Estimated Project completion date: 2020 • Estimated energy capacity: 200 MW Solar in phase 1 “Access Infra Africa perfectly illustrates EREN’s strategy of developing renewable projects in areas of the world where renewable energy represents a competitive answer to growing local energy needs, such as Africa.” – David Corchia, EREN CEO Project details: The Access Infra initiative is an investment vehicle for renewable energy projects (predominantly solar with some wind projects) across Africa with a particular interest in Egypt.

Founded by UAE-based Access Power and France’s EREN, the initiative looks to invest between $100 million and $150 million per year for the next five years in solar energy projects in Egypt, ultimately building a capacity of 1.5 GW. Their first phase of Egyptian projects comprises of PV facilities capable of providing 200 MW of solar energy.

• Project investment: $3.5 billion • Key stakeholders: Terra Sola, Ministry of Electricity and Renewable Energy • Project Initiation date: TBA Estimated Project Completion: TBA Project details: German-owned Terra Sola is headquartered in Bahrain and has outlined an expansive investment program of projects to the Egyptian Government that will ultimately provide Egypt with 3.5 GW of solar energy production.

The initial stages of the plan to achieve this significant solar capacity boost involve the construction of several photovoltaic power plants that will provide a combined capacity of 2 GW, starting with an 800 MW solar park.

In addition to these main PV plants, Terra Sola also hopes to develop a 200 MW module and inverter factory that will provide the requisite technologies used for their future solar power plants. Through this configuration, the company aims to enable knowledge transfer initiatives through education, qualification and training programs for Egyptian nationals as well as extending financial support to the existing Egyptian SME sector.

48

asianglass december/january 2016

• Project Investment: $200 million • Key stakeholders: Building Energy, New and Renewable Energy Authority (NREA) • Project initiation: 2016 Estimated Project completion date: 2017 • Estimated energy capacity: 2 x 50MW plants “We are delighted to announce the kick-off of our first two projects in Egypt. The country is blessed with world-class solar and wind resources and has established an extremely well managed program under which it aims to produce at least 20% of its total power from renewable sources by 2020.” – Cornelius Matthes, Building Energy Managing Director for Egypt Project details: A memorandum of understanding has been agreed for Italian developer Building Energy to construct two 50 MW solar PV plants at Benban, providing electricity to an estimated 50,000 people as well as creating about 1,000 jobs.

Each 50 MW plant is expected to generate around 143 GWh per year. Ultimately this contribution to the national energy mix is predicted to help the environmental sustainability of Egypt’s energy production through the reduction of over 100,000 tons of CO2 each year.

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FAS Energy Investment Programme

• Project investment: $3.5 billion • Key stakeholders: Fawaz Alhokair Group, FAS Energy, EETC, NREA • Project Initiation date: March 2015 • Estimated Project Completion: TBA • Estimated Energy Capacity: 200 MW PV plant in Phase 1, 2 GW by end

of project Project details: Despite proposed amendments and clarifications to the Egyptian Government’s Feed- in Tariff scheme, FiT continues to prove attractive to investors looking to develop renewable energy production facilities in the country. FAS energy has recently signed a land accessibility deal with the Egyptian Electricity Transmission Company (EETC) and NREA to build a 50 MW PV plant.

This is just the beginning as FAS (and its parent company Fawaz Alhokair Group) have signed memoranda of understanding with the government to develop solar facilities in Egypt that will generate up to 2 GW of large-scale energy through $3.5 billion in investment capital.

ACWA Power & Masdar Combined Solar Energy Projects

“As a regional and global leader in delivering large-scale renewable energy projects, Masdar is eager to move forward with our partners to explore sustainable, economic options to improve Egypt’s energy security. The significant contribution from renewable energy envisioned in this agreement further confirms the increasing cost-competitiveness of these solutions.” – Dr Ahmad Belhoul, CEO of Masdar “The Egyptian Government’s efforts in keeping pace with the increasing demand for power and energy to meet the expectations of its developing economy, is a key driver in looking into efficient energy solutions. We appreciate the partnership of companies, such as Masdar, Acwa Power and Egyptian Electricity Holding Company, which will explore the development of new renewable energy and natural gas facilities to provide electricity for Egyptian homes and businesses.” – Dr Mohamed Shaker El Markabi, Egypt Minister of Electricity and Energy • Project investment: $9.4 billion • Key stakeholders: ACWA Power, Masdar, Egyptian Electricity Holding Company • Project Initiation date: TBA • Estimated Project Completion: TBA • Estimated Energy Capacity: 200 MW PV initially, 1.5 GW solar overall Project details: Earlier this year, ACWA Power and Masdar signed an agreement with the Egyptian Electricity Holding Company to develop 2 GW of renewable energy capacity, including 1.5 GW of solar power and 500 MW of wind energy capacity.10 ACWA currently operates in 10 MENA countries as a developer, investor, coowner and operator of a portfolio of power generation and desalinated water production plants. Abu Dhabi’s multifaceted Masdar will be taking the lead developer role in the partnership projects.

Much like the investment strategy of FAS, ACWA and Masdar will initially develop 200 MW PV facilities before creating more expansive solar plants to bring their overall capacity contributions to 1.5 GW.

Desertec Industrial Initiative Solar Energy Project

“When Dii started five years ago, renewable energy played only a minor role in the Middle East and North Africa. This is completely different today.

Around 70 projects have now been implemented or are under construction.

During these five years Dii has helped by conducting fundamental studies, developing country specific strategies. This phase is now complete and we are adapting to new requirements.” –CEO Paul van Son. Back in 2009, a large consortium of energy production companies formed the Desertec Industrial Initiative (Dii) in 2009 with the vision of creating a vast network of solar and wind farms right across great tracts of the Middle East and North Africa (with Egypt as a critical hub) in order to export their renewable energies globally. The ultimate aim of the Dii

50

asianglass december/january 2016

is to secure sufficient solar and wind energy to supply 20% of Europe’s electricity needs by the year 2050, via a series of intercontinental special high voltage, direct current transmission cables.

Tentative estimates for this vastly ambitious plan were put at $472 billion, admittedly with the investment costs being spread over more than three decades as well as multiple governments and large industrial companies.

However, political instability and conflicting political goals across the region meant that Desertec’s progress was severely hampered, causing the consortium to dissolve into a smaller service company made up of three remaining shareholders from the original 17: ACWA Power from Saudi Arabia, Germany’s RWE and the State Grid Corporation of China (SGCC).

While its larger goal of providing renewable energy for much of the world has proved overly ambitious, the new Dii is firmly committed to providing services for concrete solar and wind projects in the MENA region.

As well as Egypt, most recently Dii has focused most of its activities on Morocco, Saudi Arabia and Turkey.

Egypt’s Brighter, Greener Solar Energy Future “Egypt has captured the headlines and attention of the solar industry the last several weeks. With 2.3 GW of power to be generated by photovoltaic energy in the next couple of years, the world is taking notice; major international players are coming to Egypt, forming key relations with local enterprises to make this ambitious goal a reality.” – Egypt’s Solar Energy Market - FiT Program and Beyond 2015.

“Encouraging the private sector to support the state’s renewable energy plan requires the establishment of legislative frameworks and tax regulation, so as to reassure investors to invest intensively in a basic structure of projects that could generate profits in time.” – Khaled Abu Bakr, Board Chairman, Taqa Arabia.

Increasing demand for renewable energy across the MENA region is quickly translating into greater levels of investment and political will to encourage further diversification of the region’s energy mix. In 2000, MENA produced about 70 MW of renewable energy. In 2014, that figure grew to around 3 GW and by 2020 it’s expected to surge to around 35 GW as significant large-scale solar projects are completed.

In Egypt, solar and wind are often considered the most viable options when considering renewable projects that will make a significant impact on the country’s ability to produce sustainable energy. While hydroelectric projects currently contribute approximately 8% of the national energy mix, further investment has the attendant difficultly of adversely affecting the water level of the Nile and other key waterways.13 Therefore, as the Egyptian Government commits to tackling rampant electricity demand in a sustainable manner, their encouragement of solar projects will most likely be shown through two key methods: increased investment, and the further development of an even-handed regulatory framework that allows for effective energy production along with adequate profit-making opportunities for their operators.

Big ambitions “The government’s plan aims at producing 20% of Egypt’s energy from renewable energy sources by 2020. We have eased regulatory procedures to encourage investment and facilitate the process of obtaining construction permits for power plants using renewable energy. The government received bids from local and international private companies for the implementation of 20 projects for the production of solar energy at a cost of $30 billion, which will add 20,000 megawatts to the electricity grid in just two years.” – Mohammed al- Yamani, spokesman for the Minister of Electricity and Energy.

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SPECIAL REPORT: DUMPING

SPECIAL REPORT:

DUMPING China: a new day dawns

Chinese industries are awakening to the reality that they may lose their share in the already shrinking European market due to confrontations over anti-dumping duties and allegations of circumventing the duties.

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part from the instances of anti-dumping wars, Chinese manufactures are worried over their market share being taken over by much smaller emerging economies. The increasing production costs, growing competition and dumping wars are making prospects of Chinese manufacturers from coastal provinces bleak as those regions are already going through a spell of lower productivity.

All change?

The Chinese manufacturing industry played a dynamic role in expanding limits of its geo- economics. The trade relations and the economics behind it proved crucial to ascertain China’s global rise. As China is embracing the more open international trading system mandated by the WTO, the counter effect of such phenomenon is also disturbing China. The Chinese economy faces enormous pressures as a number of protectionist measures in the form of invoking antidumping provisions have been sought by its trading partners.

China’s major trading partners including Germany, U.S., Japan, India and EU as a region are imposing anti-dumping duties against Chinese products, which are threatening Chinese industries. For the Chinese enterprises, EU has been the largest trading partner and these trading relations have been a central and an important driver to the developments of contemporary ChinaEurope relations. Closer Sino- European ties have seen a steady convergence of interests between the two blocks. Chinese manufacturers, whose share in the European market rose substantially, influenced commodity markets, consumer markets as well as capital goods markets in Europe. However, as economic engagements grew intense, the concomitant tensions in their economic and trade relationship rose to prominence. A number of trade allegations have shadowed increasing investment by Chinese firms in EU and Chinese occupancy in the European market. EU had been accusing Chinese firms of employing preferential policies that give an edge to the Chinese manufacturers to compete in the European market, creating unfair competition (European Commission 2012). Chinese industries’ success in the European market has been related to the logic of ‘pricing’, which looks unrealistically low for the local EU competitors. As a result, at a number of times, EU has taken a protectionist stand towards China’s trade with European countries.

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Increasing number of restrictions in the form of anti-dumping duties (ADs), countervailing duties (CDs) and instituting a body to monitor foreign investments has countered this surge. These trade restrictions led the changes in Chinese industrial structure. This paper attempts to analyse the nature of response from Chinese industry, which has been subjected to ADs. To understand the issues and responses better, the paper has taken two industries as cases to map the ongoing transformations. Case one will focus on Chinese photovoltaic (PV) industry and Case two will highlight the way Chinese ceramic industry is coping with the higher duties in EU.

Remedial action

The manufacturing sector in China is coping with challenges posed by the ADs and CDs around the world. EU, US and even smaller countries block Chinese products under the pretext that these products harm indigenous economies due to their pricing competitiveness. The products put under restricted trading range from ceramics, porcelain, saddles, solar panels, certain candles, tapers, bicycles, Chamois leather to certain types of chemicals. As debates over manipulating ADs continue, every investigation into anti-dumping has made Chinese manufacturers introspect. EU is not only the largest trading partner of China but it also is a leader in launching multiple investigations against Chinese products. From 1998 to 2008, EU initiated 73 anti-dumping investigations on Chinese products, higher than any other country (Davis 2009: 11). By April 2013, the bulk of EU’s anti-dumping cases, about 80 per cent, belonged to imports from China (Bilby 2013). The important investigations targeted products involving chemicals and industrial component parts. This underlines how EU’s growing dependence over Chinese commodities corresponded with the growing number of anti-dumping cases against China.

The trading restrictions in the form of ADs led to trade wars between EU and China. The restrictions led by EU have forced the Chinese enterprises to revise their trade strategy. It is a fact that Chinese provincial governments and enterprises promoted certain industries to flourish quickly and get higher returns. Lack of innovation, haste to compete in the market with minimal market study and replicating business strategies put Chinese firms at risk.

Whether it was ceramic industry, solar panels or glass, Chinese enterprises could sustain at lower margins along with the help of tax subsidies given by the government. However, the investigation and subsequent listing of

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SPECIAL REPORT: DUMPING

Chinese products for levying anti-dumping duties has changed the approach of Chinese enterprises.

ASEAN and China are adjacent, this adds another dimension for Chinese PV companies to provide quality customer service.

Solar glass issues

Domestic focus

Take the PV and solar glass industries for example. The EU is China’s largest export market for PV products. Chinese Photovoltaic (PV) industry faced a tough time when the European Commission, in 2011, started enquiring into Chinese products and investigating possibilities of levying higher import duties on Chinese PV products to protect domestic manufacturers.

Both parties accused each other for neglecting the general fair practices in international trade. To quote some references during those times, EU suspected that Chinese PV products are undervalued (European Commission 2013). The industry sources in Italy and France are particularly against the import of Chinese PV products in Europe, which caused a heavy blow to their domestic PV industry (Sungold Solar 2013; People’s Daily 2012). Initially, EU was divided over the level of taxes to be imposed on Chinese companies and trade restrictions. In 2011, China had exported nearly US$35.8 billion of photovoltaic products worldwide, of which 70 per cent were exported to the European market only. In the subsequent year (2012), as EU had initiated the trade investigations, the trade percentage dropped to 50 per cent. EU investigations put the Chinese PV business under ‘double reverse policy (anti-dumping and countervailing)’ investigation. This was the biggest antidumping case in the history of China-EU trade relations.

Although, for three consecutive years (2008, 2009 and 2010) China remained the world’s superpower in solar cells, in reality the PV industry in China was suffering from overcapacity and bitter competition, which led to compromising quality and flooding the EU market with unreasonable prices.

In the process, the basics of sustenance were overlooked. In March 2013, the Chinese PV industry leader Suntech failed to survive through financial burdens. Shrinking market, increasing debt and overriding cost caused bankruptcy and its eventual fall creating panic among PV manufacturers across China. In recent years, Chinese domestic ‘PV base’ has spread to a number of regions and as per the 12th Five-Year Plan for the Solar Photovoltaic Industry (2011-15), all administrative units (provinces, autonomous regions and municipalities) are advised to give priority to support the development of photovoltaic industry during the plan period (Gov.cn 2012). There are 300 cities in the development of photovoltaic solar energy industry (China Business Network 2011). From June 6, 2013, EU imposed provisional ADs on the PV products from China. For the initial two months, the tax rate was 11.8 per cent and then rose to 47.6 per cent. The provisional duty was intended to provide some span to solve the trade disputes and let Chinese factories buy some time to consult and draw plans. As per the negotiations concluded, Chinese PV manufacturers agreed to the €0.56/watt price guarantees and maximum 7 GW solar panel export cap for each year. EU agreed to cancel the ‘dual’ since August 6, 2013. Although, consensus was reached between both parties, Chinese PV industry has deployed strategies to end the crisis in its own way.

New frontiers

Outside Europe, the Chinese PV industry is vigorously exploring new markets in the neighbouring ASEAN countries. According to the report released by market research firm IMS Research, by 2016 the cumulative PV installations in Southeast Asia will reach nearly 5GW. ASEAN economies are ideal markets for the Chinese PV industry. The Southeast Asian countries are exploring ways to improve local conditions by electrifications using non-conventional resources and pursuing low carbon economy. This need to develop solar photovoltaic industry provides Chinese PV enterprises a golden opportunity to develop their ASEAN PV export structure. On the backdrop of ChinaASEAN Free Trade Area, China and ASEAN countries’ trade has entered a ‘zero tariff’ era, so even if Chinese PV companies in the domestic production decide to export to ASEAN countries, it will benefit them substantially. Since

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As soon as the investigation in countervailing and dumping duties began, the Chinese manufacturers started looking for alternatives (TTCF 2012).

The export structure dominated by exports to Europe proved unsustainable and immediate diversification in it was unattainable within a short span.

Diversification of export structure needs investment and extensive market research, so when the European market started shrinking due to the ADs and clauses mutually agreed, Chinese could not manage the situation in the initial months. Already hit by the increased pressure from banks for non-performance, the PV manufacturers started applying their strategy to focus on the domestic market and make up some margins to sustain and cope with the financial pressures. According to U.S. investment bank Maxim Group’s report, China’s 10 largest solar energy companies’ balance sheets were highlighting a debt totalling US$17.5 billion, indicating that the entire industry was nearing bankruptcy (ZEITC 2012). New entrants in the Chinese PV manufacturing industry are better equipped than the existing players to deal such circumstances (CPN 2013).

Although the domestic PV market demand continues to expand, it still cannot compensate for the losses caused by restrictions in Europe and America, at least not so early. It became necessary for the Chinese PV industry to alter its marketing strategy by steering the development of the domestic market, seeking PV power plants and power plant technological innovation business model to face the challenges. The PV industrial sources (manufacturers, trade associations and minor traders) started paying attention to the fact of developing the micro-grid PV power stations. The PV micro-grid, which can achieve self-control, protection and management of small-scale generation and distribution systems, is seen as the new business model, which needs least infrastructural adjustments.

Technical improvement

China’s dependence over ‘external materials’ in PV industry, eventually led to its failure. The core technology in this industry is that of polysilicon production; trichlorosilane is a principal compound monopolized by the European companies that costs 50 per cent of the total production expenses.

The Twelfth Five-Year Plan for the Solar Photovoltaic Industry provides detailed guidelines and puts forth the task list for the PV industry. It also sets high technological standards for the industry by insisting to engage in the indigenous production of high-purity polysilicon, silicon ingots, and crystalline silicon cells and so on (Gov.cn 2012). According to the Vice President of China Renewable Energy Society, Mengxian Gan, the technical bottleneck in the Chinese renewable energy development proved as the main factor for the debacle of Chinese PV industry (CPNN 2014). Father of Chinese PV industry and the then Chairman of Suntech Power Holdings Co., Ltd., Shi Zhengrong, years before the collapse of Suntech, criticized the lethargic attitude of Chinese PV manufacturers towards ‘manufacturing research’, this left the Chinese industry deprived of cutting edge technology and control the price processing (PSNN 2012). The provinces, which supported the establishment of PV manufacturing farms, were pursuing short-term interests and ignored the long-term benefits. With the PV ADs, Chinese understood that an excess reliance over foreign markets for the core technology would leave Chinese companies vulnerable once the tariff changed or trade wars commenced.

The 12th FYPSPI specifically insists on innovating and developing production technology of solar cells, encouraging mass production, and enhancing the PV industry’s core competitiveness (Gov.cn 2012). In the pursuit of fast growth and sharp increase in foreign trade, provincial governments in China overlooked the fact that exploring the ‘bottleneck’ could lead to selfsustainment. The support of the provincial leadership went to those projects that could assure returns in a short time span.

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ANALYSIS: Container Glass

is glass decoration entering a new phase?

Amanda Saint looks at why a rising cost base means that container glass makers are looking to implement a range of new decoration techniques.

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he challenges posed by increasing environmental legislation and the ever-rising costs of materials, logistics and staff mean that container glass manufacturers are having to take a new approach to decoration. These new approaches are seeing the development of a range of new techniques and technologies to ensure the aesthetics of the end product remain attractive to the consumer while enabling the manufacturers to comply with ever more stringent rules and regulations and keep the bottom line healthy at the same time.

Despite fears that the long-term future for the container glass market was looking pretty grim, with rival products such as PET and plastic expected to take a big chunk of market share, the reality is that the sector is thriving and is expected to keep on doing so for some time to come. This healthy growth trajectory is largely being driven by the widespread consumer opinion, which is correct, that glass packaging is a much greener choice. So with sustainability and greener living in mind for many of todayâ&#x20AC;&#x2122;s shoppers, demand for food, drink, cosmetics and other beauty products supplied in glass containers is growing.

Aesthetically, the perception of glass is that it used for more high-end brands and products so again demand is being driven by the need for consumers to feel they are getting the best that their money can buy.

These perceptions mean that analysts are predicting that the global procurement of glass bottles will continue to grow by a CAGR of 3.62 per cent from now until 2018. Much of this growth is being driven in the alcoholic drinks sector, which already makes up 50 per cent of the entire container glass market. Having the lionâ&#x20AC;&#x2122;s share of the market is not expected to change with Indiaâ&#x20AC;&#x2122;s beer industry in particular poised for rapid growth in the next few years.

Countries such as the UK, Australia and the US have already seen big growth in this subsector with the rapid proliferation of microbreweries feeding into the huge demand for craft beers. The UK alone has seen the number of breweries in operation grow from just 150 in 1975 to 1,000 in 2015.

Despite the growing green and sustainable reputation that glass is developing, the impact of other packaging options cannot be ignored and over the next few years the container glass market is going to face increasing competition from rival packaging materials that are stronger, lighter and cheaper to manufacture and transport; as is already being experienced in many of the glass packaging submarkets. Glass is up to seven times heavier than the equivalent volume of

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plastic, which is a significant difference when budgeting for logistics cost so the growth of plastic pouch packaging is the largest threat facing the glass packaging market in the short run.

A fact of life that all industries have to live with too is the difference between what the consumer wants and expects from the products they buy and what they are willing to pay for them. What it boils down to is that although customers want unique packaging they are not prepared to pay too much extra to get the feeling of having a bespoke product. This means that in order to give a customised container without shrinking the margins too far and making the business line unsustainable in the long term, many container glass manufacturers are employing tricks to get around this hurdle.

These tricks range from embossing on to standard containers to make them appear more highend to producing several bottle designs out of the same blank mould.

If glass manufacturers are to meet this continual rising demand for more products across all food, drink and cosmetic sectors then recycled glass has got to play a big part in their business plans because as demand

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ANALYSIS: Container Glass

Glass Container Collection for Recyling Europe (EU 28 + CH, NO, TR) Year 2013 COUNTRY

234,000

93

Belgium

321,205

304,316

95

Bulgaria

74,017

45,330

61

197,844

148,331

75

15,318

5,310

35

150,408

146,926

98

Estonia

40,718

29,126

72

Finland

82,153

63,122

77

France

2,712,000

1,992,000

73

Germany

2,483,200

2,183,200

88

Greece

96,000

34,840

36

Hungary

101,841

32,888

32

Ireland

154,638

122,106

79

2,254,513

1,720,000

76

Latvia

51,739

28,514

55

Lithuania

64,176

46,354

72

Luxembourg

29,292

27,720

95

Malta

10,621

2,263

21

546,000

430,000

79

1,076,571

464,796

43

Portugal

363,047

202,317

56

Romania

167,580

78,578

47

Slovak Republic

153,805

58,536

38

31,993

27,928

87

1,338,000

938,500

70

197,768

191,979

97

2,399,000

1,635,889

68

98,891

56,740

57

15,465,138

11,251,609

73

69,739

62,714

90

Switzerland

371,602

357,154

96

Turkey

668,000

154,000

23

16,574,479

11,825,477

71

Denmark

The container glass sector is without a doubt getting greener. In the US, the Glass Packaging Institute has set a goal of 50% recycled content being used in the manufacture of new glass food and beverage containers.

If all glass manufacturers on every continent were to commit to the same goal it would have a huge impact on the sector’s environmental performance

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2013 - Collection for Recycling rate %

252,800

Cyprus

Getting Greener

Collection for recycling (tons)

Austria

Czech Republic

grows so do production costs and environmental laws, as well as the need to develop ever more innovative approaches to design and decoration that keep consumers, regulators and the planet happy. So making advances in design and decoration has to take into account more than the aesthetics of the container as environmental sustainability has to be considered, as well as the look of the bottle and the consumer’s perceptions. It’s a balancing act that can be hard to get right but there are evolutions being made that mean the container glass industry can provide decorations that help it be greener as well as attractive on the shelf without increasing the cost to the consumer considerably.

National Consumption (tons)

Italy

Netherlands Poland

Slovenia Spain Sweden United Kingdom Croatia Total EU 28 Norway

Total Europe Source: FEVE

december/january 2016 asianglass

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ANALYSIS: Container Glass

as for every 10 per cent of recycled glass used in the manufacture of new bottles, energy usage drops by a corresponding two to three per cent.

Less energy use translates to fewer greenhouse gas emissions and by cutting the energy used powering the furnaces by two to three per cent, then harmful emissions are reduced by between six and 10 per cent.

But the use of recycled glass in the manufacturing process is also dependent on people recycling at home, work and play. This is on the up, with glass recycling in the EU reaching 73 per cent for the first time in 2013, which is the latest figures released by FEVE (The European Glass Federation) meaning that more than 25 billion glass containers were recycled. Coming out on top was Denmark but not far behind at all were Sweden, Belgium, Luxembourg, Austria and Germany who all broke their own previous recycling records. Making strides were Italy, The Netherlands and Malta who all improved on previous years.

However, it is Eastern Europe where things have really started to turnaround and countries such as Estonia, Slovenia, Slovak Republic and Croatia all recorded promising growth rates. See Table 1 for EU glass recycling statistics.

The latest figures from Australia show that for 2013-14 the recycling rate for glass containers was 47.5 per cent while in New Zealand they’ve achieved almost as an impressive result as the EU with the most recent statistics showing they achieved a 72.6 per cent recycling rate.

In the US, in 2013, 41.3 per cent of beer and soft drink bottles were recovered for recycling, according to the U.S. EPA. Another 34.5 per cent of wine and liquor bottles and 15 per cent of food and other glass jars were recycled. In total, 34% of all glass containers were recycled so the US has some serious education of its home and business owners to do if it’s to catch up with the rest of the developed economies any time soon.

But, even though the recycling progress in most of the developed economies is coming on in leaps and bounds we still have some way to go as the many emerging and developing economies try to get to grips with these processes and instil the recycling ethos in their citizens. You may be wondering what this has to do with the evolution of container glass decoration. Well, the decorative finishes applied to glass can make the recycling process more difficult or in some cases impossible, meaning that much of the glass sent to recycling centres ends up in aggregate rather than in new containers.

So the use of recycled glass is just one step in improving the sustainability of the container glass sector but one that is intrinsically tied to the decorative evolutions we’ve seen in recent years. What this means is that now the focus has to be on making the changes necessary in the processes used to decorate the containers before they hit the shelves the first time around so that not only have less impact on the environment then, but can be easily recycled and have less impact throughout the entire lifecycle of the product.

Improving technologies and techniques

Some of the steps being taken by container glass manufactures to improve the environmental performance of their decorations include: using zeroVOC UV inks that use environmentally safe organic colours; using curing systems with lower VOC emissions and energy requirements; and replacing the high water utilization demands and unsafe chemicals of traditional acid-dip frosting with much more environmentally safe water-based, organic spray frosting and using natural precious metals such as gold and palladium.

But beyond environmental concerns, although these are obviously of growing importance to every glass container manufacturer and decorator, the focus for innovation is on creating more beautiful and different finishes to make a brand’s bottles stand out from the crowd.

This has been achieved through a range of finishes including: Frosted; Metallic; Transparent; Lacquer; Opaque; Solid Colour; Soft Feel, which simulates velvet, rubber, plastic texture to touch; Fliptone; Pearlescent; Fluorescent; Luminescent; and Termochromic, which enables colours to change when the temperature of the container changes.

Silk screen printing is often used to decorate some of the most sophisticated

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and beautiful pieces on the market today, including big brand scent bottles and high-end cosmetics and other beauty products. Some of the recent advances in improving the environmental performance of screen printing include using zeroVOC UV inks, environmentally safe organic colours and precious metals such as gold and palladium; and printing translucent colours without tonal variation.

One of the most difficult technologies to master for container glass decoration has been digital printing, which is one of the easy ways to improve environmental performance as it cuts out the middle man as the image to be printed is just sent directly from the computer to the printer so there is no need for screen prints, negatives or templates.

But the early attempts couldn’t pass the rigorous industry standards for product resistance and adhesion. However, in the past couple of years there have been significant advanced in the technologies that have enabled them to overcome these issues and digital printing on glass is now set to make some serious leaps forward in the coming years.

All of the processes above that container glass decorators have spent years developing and perfecting in order to give glass containers different finishes, will eventually be phased out as the look they want will be able to be easily created through digital means, starting with digital printing. Although this is innovative now as is the case with all technological advances it will soon become old hat and the next evolution for container glass decoration, and container glass manufacturing as whole, will be 3D printing.

The 3D printing revolution

In the stuff of science fiction, the technology to create 3D printers started to develop in the 1980s but it only started to become more well-known over the last decade or so. Now the 3D printers developed from those early experiments in Additive Manufacturing equipment are starting to become more mainstream and are being heralded as one of the major steps in a new industrial revolution, which has in turn been driven by the digital revolution we’ve all been living through for some time now. But what impact are 3D printers likely to have on the container glass market?

Well, earlier this year engineers in the Mediated Matter lab at MIT showed the world that we can now print with glass using the G3DP (Glass 3D Printing) platform that they’ve developed. The process combines ancient techniques with modern technology in a two-tiered 3D printer that is capable of producing intricate designs that conventional glass-blowing methods would struggle to emulate. The upper chamber stores the molten glass at 1,900°F and works as a kiln to keep the glass pliable. The molten glass then travels down through a heat resistant funnel made of alumina zircon silicon into to a lower compartment that allows the glass to cool but not break.

What does 3D printing mean for the future of glass manufacturing? Well, it’s very early days yet and the team have published a paper for peer review in the September 2015 edition of 3D Printing and Additive Manufacturing. The focus for the research into the technology’s application is currently on engineering and architecture but once it moves on, it’s not too far-fetched to envisage that the glass containers of the future will be printed using a machine like the one MIT have been demonstrating. So whatever decoration you want will be able to be easily applied at the design stage in a software package and the glass container will be ‘printed’ fully formed and ready to go.

Some analysts and tech watchers have even floated the idea that we will have vending machines that will print the bottle to order whenever consumers buy food, drinks, or cosmetics so that manufacturing on a large scale and shipping to shops around the world would become a thing of the past. But something like that really is a long way in the future and if the past decade of the digital revolution has taught us anything it’s that the nature of technology development means that everything could completely change again before we got there.

In the meantime, there are developments happening in the present day that are seeing the way container glass is decorated go through an evolutionary process rather than a revolutionary one.

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R-Select Chains... Wear Resistance, Where You Need It Most Ramsey’s new patented R-Select chains put hardened, highly wear resistant alloy links in the parts of the chain which are expected to wear the most. Parts of the chain less subject to wear are made with standard, heat treated steel links, keeping the cost of the chain low.

Contact Ramsey at www.ramseychain.com, (704) 394-0322, sales@ramseychain.com

Glass processing machines since over 100 years • Solar glass rolling machines • Cast glass rolling machines • Wire mesh feeding equipment • Wire mesh tearing machines • Cast glass cutting lines • Sheet glass drawing machines • Refractory cutting and milling machines • Glass cutting machines • Glass surface and grinding machines • Stirrers and Spare parts Latest development: 2 mm photovoltaic-glass!

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Woelsauer Strasse 20 PC: 95615 Marktredwitz/Germany Phone: +49-(0)9231-502-0 Fax: +49-(0)9231-502-52

E-mail: verkauf@fickertwinterling.de http://www.fickertwinterling.de

ADVERTISER FEATURE

Advanced Material Research Leads to Wear Resistant Conveying Chains R-Select chains are built with links made from a special wear resistant steel alloy.

But what makes R-Select unique is that chains do not need to be made entirely from wear resistant links. They can be produced using a mixture of wear resistant links and more economical standard steel links. This keeps the production costs down and allows customers to decide where in the chain they wish to add wear resistant links.

Alternatively, customers who are looking for optimum wear characteristics, and are less concerned about added cost, can have chains made entirely from R-Select links.

steels under consideration and subjected to prolonged abrasive wear testing in Ramsey’s test facility. These tests were repeated for each alloy. After hundreds of hours of testing, results showed that links made from one particular alloy wore at ½ the rate of typical links. Since this alloy also met cost expectations it was selected for further testing in actual glass production facilities.

Field Tested By Bottle Producers Test chains were then assembled R-Select chains are built using a mixture of wear resistant using links made from the prospective links and more economical standard steel links, making wear resistant alloy. These chains were them more wear resistant while keeping the price down. then installed in numerous glass bottle production plants. After the chains were put into production, the initial feedback from plant operators was very encouraging; R-Select chains did not elongate nearly as fast as typical chains. This meant that operators did not need to shut down the conveyor as frequently to remove excess chain length. Favorable customer reports continued over the course of years, with one customer reporting they were able to run their R-Select chain for twice the amount of time they would typically run a chain. With these favorable results and the issuance of a US patent, Ramsey formally introduced the R-Select product line. R-Select is covered under US patent 8,474,607, with additional patents pending in Europe.

Improved wear resistance of alloy links

Multiguide chain with wear resistant alloy links

R-Select – A Chain with Targeted Wear Resistance Over the years, Ramsey has found that most conveying chains are susceptible to abrasive wear at the link tips and in the link joints.

This wear causes chains to elongate, or “stretch”, and link height to decrease. These conditions can lead to more frequent maintenance, product breakage, and more frequent chain replacement. R-Select chains can help alleviate these problems.

For example, some customers running multiguide style chain may find the link tips in the central portion of the chain wear more rapidly than the guide links on the outside edges of the chain. Over time, this can create an unwanted dip in the middle of the chain which can cause bottle tipping. To address this problem a chain can be made using R-Select links in the chain’s center to slow the rate of wear.

Standard links are used elsewhere and all the chain dimensions will be the same as before. The chain will also be fully compatible with the existing sprockets. The result is a chain which will wear less rapidly in the center with only a slightly higher cost.

As another example, a customer who is most interested in reducing the rate of chain stretch may elect to use R-select links throughout their chain. The R-Select chain built with 100% wear resistant links will provide the most significant resistance to chain stretch.

Extensive Laboratory Testing of Alloys The development of R-Select required years of research and testing.

The process began with the search for a proven wear resistant steel alloy which was also economical. Consulting with metallurgists and steel suppliers, Ramsey engineers chose a number of prospective alloys to test. Sample chain links were then produced from the

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asianglass december/january 2016

Compatible with existing chain and sprockets Almost any style of Ramsey conveying chain can be made using R-Select links. This includes single pin and two pin chains, chains with or without spacers, side guide, center guide, or multiguide chains.

Lifeguard and Allguard FX chains can also be customized with R-Select to achieve optimum wear resistance. aMultiguide chain

Multiguide chain with wear resistant alloy links

aR-select-chain

R-Select chains are built using a mixture of wear resistant links and more economical standard steel links, making them more wear resistant while keeping the price down.

Graph

Improved wear resistance of alloy links

Please contact Ramsey for more information: sales@ramseychain.com, www.ramseychain.com Written by: Ramsey Technical Team

www.asianglass.com

ANALYSIS: Container Glass

Who’s doing what?

In a highly fragmented market, when you think of the leading players in the container glass field you would undoubtedly come up with companies such Owens-Illinois, Saint-Gobain, Verallia, Vitro, Gerresheimer, Hindustan National Glass & Industries Ltd, HNG glass and Ardagh Group. Between them they are coming up with innovative approaches to design and decorations that can help them deliver what their customers, and the legislators and shareholders, want.

Although these bigger players always tend to lead the way with advances and evolutions in processes, mainly because they have more people and money to invest in dedicated R&D efforts, there is some serious innovation going on in organisations of all sizes all across the world. Companies such as KBA-KAMMAN GmbH and Decotech Inc. have already launched innovative solutions. KBA has a fully automatic digital printing machine that can be integrated into all existing machines in its product range. It can do complete digital printing of white and CMYK directly onto hollow glass containers in round, cylindrical, square, conical and oval shapes.

Decotech has already launched several items in the marketplace using its digital printing technique that has passed all of the industry tests and standards.

It can provide digital printing directly onto glass containers using a four-colorprocess that can deliver a range of decorative effects. These include translucent and opaque photo-realistic effects; reverse printing so that images are presented correctly from both the front and back of the bottle; and single colour and multi-colour gradients, as well as half tone effects, all of which were previously impossible to achieve with traditional decorative printing techniques.

Lightweighting is another factor that has had to be taken into account. The

drive to make everything lighter means that the decorative elements applied have to become lighter too – this is especially true of finishes such as flocking and the soft-feel that gives us rubbery bottles.

Future developments

While the long-term future of the container glass industry’s manufacturing and decorating processes will without a doubt include 3D printing, or whatever technology eventually becomes the mainstream product from the research and developments being made in this process, in the nearer future we will see more innovative approaches to current technologies. Digital printing is going to enable lower-cost production of distinctive design finishes meaning that the consumer’s demand for highend products without high-end prices will be met. Manufacturers will be able to overhaul their design processes as everything will be able to be integrated from the start; and the tricks they need to employ to keep costs under control while producing bespoke looking products at a margin that keeps them profitable will be much easier to pull off.

As the alcoholic drinks sector continues to thrive, it will play an important role in keeping the container glass sector healthy as the food side faces stiffer challenges from new, lighter packaging options. But it’s likely that environmental concerns will limit the impact of these as perhaps most the most important evolution the entire container glass sector has seen is that the consumer has realised that the perception of glass as the most sustainable and green container for our food, drinks, cosmetics and pharmaceuticals is not just a marketing statement, it’s a true one.

Saving Energy and Fuel Lubisol Ltd is offering significant savings of energy and fuel by efficient thermal insulation of glass furnace crowns.

The Lubisol crown insulation design is based on the principle that the usual light silica bricks insulation is partly replaced by the Lubisol insulation, applied over the light silica bricks. It is followed by a layer of Lubisol Cover Coat on the top. The thickness and the total cost of the insulation remain almost the same, but the heat losses from the crown are reduced by about 800-1000 W/m². The amount of the saved fuel is around 1300-1500 m³/m²/year natural gas or 1200-1400 kg/m²/year heavy oil. The cost of the saved fuel is significant.

The insulating material Lubisol 2-SL has a very low specific density of 0.33 kg/dm³, a high working temperature of 1400 °C and a very low thermal conductivity of 0.13 W/m.K at 500 °C. The cost for one cubic meter of this insulating material is lower in comparison with the cost of the light silica bricks, and in the same time it is about 3 times more efficient.

The Lubisol crown insulation package is suitable for application on all types of glass furnaces producing any type of glasses, including float glass, container glass, tableware or technical glass. It is very suitable for insulation of silica crowns as well for AZS and alumina fused cast crowns. It has been applied in the last several years on more than 80 glass furnaces all over the world.

The efficient Lubisol insulation package brings significant energy and fuel savings without any additional material and labor costs. It is a very good technical solution and a better option for the glass industry.

website: www.lubisol.com www.asianglass.com

e-mail: office@lubisol.com december/january 2016 asianglass

61

ADVERTISER FEATURE

Close co-ope a first choice for thin glass float plants JSJ Jodeit and GFT have joined forces to position themselves as the first independent supplier of float glass plants for thin glass.

T

he two German machine manufacturers JSJ Jodeit and German Floatglass Technology joined forces in the Summer of 2014 in a close cooperation. This move has positioned the companies as the first independent provider of entire float glass plants for thin glass in the marketplace. As a trusted partner with extensive experience in process automation for float glass plants, Siemens also has its role to play in the venture.

strengthening glass, and bending methods for smartphone and tablet glass using laser technology.

The added value that innovations such as these will ultimately offer customers is best illustrated by the following example: The idea behind the planned continuous strengthening process is that larger volumes of glass can be chemically strengthened compared to the previous discontinuous method – at overall lower costs. “The market in Asia is showing particular interest,” says Jodeit.

Deal - makers

JSJ Jodeit GmbH, an owner-operated manufacturer with headquarters in Jena, supplies high-quality customized technical solutions and plants. Its work is underpinned by a profound technological understanding of how to ensure smooth and optimized operations in glass production plants. JSJ sees itself as a reliable partner not only for developing, designing, supplying and commissioning production plants, but also for monitoring, optimizing and modernizing its solutions throughout their entire life cycle. Customers particularly appreciate the company’s steady growth and development since its founding in 1991. This has been enabled through in-house research and development work – the results of which offer real added value. For example, JSJ has successfully increased glass quality and recovery levels, as well as plant flexibility and service life, while reducing energy consumption and improving environmental performance.

Thin glass: a trend and challenge

“If you take a look at the market today, it is clear that thin glass is the trendsetter of the moment,” says Dr. Harald Jodeit, owner and CEO – after which the company is also named. “The various types of thin glass are not just gaining ground in electronic applications, but also in architecture, construction, building technology, transport and healthcare. There is great potential.” Yet the technological challenges are equally great – in every single area and stage of thin glass production.

The German melting furnace and mechanical engineering company is responding to those challenges by researching and developing an array of innovative solutions. One such example is the fully electric melting furnace for manufacturing alkaline-free special glass with a daily output of well over ten tons. Other innovations include continuous processes for chemically

62

asianglass december/january 2016

JSJ Jodeit and GFT have joined forces to position themselves as the first independent provider of float glass plants for thin glass – with Siemens as their preferred project development and technology partner. From left to right: Bernhard Katter (GFT), Dr. Harald Jodeit (JSJ Jodeit), Heinz-Josef Lennartz (Siemens) and Dennis Schattauer (GFT) plan their first joint projects.

Cooperation is key

As well as mastering technical issues, process OEMs like JSJ must also overcome a long list of challenges in the glass industry. They must find their footing in a highly dynamic global market that is already saturated in some segments, and develop their own niche. “Our success depends on a highly qualified, interdisciplinary and motivated team that thinks and acts globally,” Jodeit is convinced.

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ADVERTISER FEATURE

eration The managing partner firmly believes that the success he strives for will be best served through strategic cooperation. Mechanical engineering firms in the process industry are often highly specialized, and must therefore collaborate with other experts to cover all aspects of the glass manufacturing process – from raw materials to the glass melt, all the way to shaping and processing. In Summer 2014, JSJ found the perfect partner in GFT German Floatglass Technology GmbH, based in Gelsenkirchen – and specialist for shaping thin glass through floating. JSJ and GFT immediately formed a 5050 partnership and signed a cooperation agreement. By combining their individual expertise, the two companies have positioned themselves as the first independent provider of float glass plants for thin glass.

“Our name says it all: We offer the market innovation and expertise in float glass,” says Dennis Schattauer, managing partner of GFT since 2014.

His claim is justified above all by the experience that the company’s staff members gained directly with Pilkington, the patent holder of the float glass process. Former employees of Pilkington Deutschland, including Schattauer’s now deceased father, Ulrich Schattauer, and the managing partner Bernhard Katter, struck out on their own with GFT in 2005. The new engineering firm started out small, offering planning and engineering services for conventional float plants. A decade later, the company has expanded considerably. GFT plays to its strengths, not only as a float bath supplier, but also as a full service provider – from planning and engineering plants to in-house manufacturing, all the way to assembly, commissioning, training and optimization. The range of services even includes production monitoring for one to two years – something of an exception in the industry.

Knowledge transfer in high-temperature glass

Innovation at GFT is driven by their own in-house research and development work, as well as by collaborating with universities. Two of the main technological challenges in special glass plants for thin glass are the viscosity and the higher temperature required in the shaping process.

“The expertise that GFT has acquired in the area of high temperature glass is currently also helping to improve our conventional float glass plants,” Schattauer explains. Through optimization they are now significantly less expensive for customers to purchase, while energy and operating costs are also reduced. A particular challenge in the current market is the demand for ever thinner glass that meets the highest quality standards – all at lower manufacturing costs. To meet this demand, GFT has introduced, for example, completely sealed float baths, which also lower both energy and operating costs.

GFT is responsible for a number of innovations in the market, yet the most unique product of all is surely its Dross Box, a component downstream of the float bath. “Our Dross Box model was specifically developed for the production of high temperature glass. Thanks to our special design, thermal distortion and losses of bath atmosphere and heat are minimized,” Schattauer explains.

In general, the company constantly strives to develop and improve conventional products for the high temperature area. “We have an

www.asianglass.com

Dr. Harald Jodeit and the staff at JSJ benefit from the company's own technical center for research and pre-production at the headquarters in Jena.

additional 200 to 300 degrees here, which requires the highest level of expertise,” Schattauer adds.

First independent supplier of float glass plants for thin glass

For both JSJ and GFT, the exclusive and close cooperation is much more than a mere partnership of convenience. On one hand, the two companies are ideally matched in terms of alignment and size. On the other hand, they also share the same business philosophy. Both are innovative and collaborative players who offer their customers complete solutions and services from a single source. Especially when it comes to the flat glass industry. “In the area of float glass plants for thin glass, we are the only supplier with the

december/january 2016 asianglass

63

ADVERTISER FEATURE

in the plant-wide integration entire range of core technology of machines and plant sections in the hot end,” says Schattauer in a total automation concept, about the cooperation’s unique with all of the associated selling point. “What is more, advantages. the chemistry is just right,” “In addition, we also Schattauer, Katter and Jodeit see Siemens as a project agree – a major factor in the development and technology cooperation that also benefits partner whom we can turn their customers. to right at the start of a Both stakeholders gladly project,” Jodeit adds. “Thanks assume the role of coordinator, to decades of experience in consortium leader or general the glass industry, Siemens is contractor – depending on the able to offer reliable advice, customer’s needs. After all, plant both for investors as well as operators or investors are usually end customers. And on an looking for complete turn-key international level, as well,” solutions, instead of individual Schattauer believes. Indeed, units. And that puts the Siemens is very eager to cooperation on an even better incorporate its expertise in all footing to serve its customers. GFT is renowned not only for its float bath technology, but also as a full service provider – from planning and engineering plants to in-house manufacturing, all the way to asof these areas.

Particularly as traditional sembly, commissioning, training and optimization. The range of services even includes Sights set on first major general contractors usually only production monitoring for one to two years – something of an reference projects provide planning services, and In the coming months, JSJ, not the actual added value.

GFT and Siemens will focus on making the cooperation even more public The business partners believe synergies can be leveraged above all in and landing the first major reference projects together. The three players complementary products, in manufacturing processes, and in global market are confident that their unique constellation in the market will attract development. Both partners also hope to bring more highly qualified staff renowned investors and operators of float glass plants for thin glass. with international profiles into the company over the coming months and years.

Partnering with Siemens

When the scope of a project requires, JSJ and GFT bring other partners such as Siemens on board. “Siemens is our first choice, particularly when our projects deal with automation and drive technology, electrification, instrumentation or auxiliary and supply systems within the glass factory,” says Jodeit on behalf of the cooperation. These are provided with the customized solutions for thin glass production that JSJ and GFT have incorporated into their portfolio. “But that is only half of the story. Siemens is not just a component supplier for us. We and the glass producers also truly appreciate Siemens’ expertise in solutions and systems,” Jodeit adds.

Siemens’ particular strength has become a household name among glass experts: plant-wide automation (PWA). The requirements of glass producers and machine and plant manufacturers are better addressed than ever before by a portfolio that enables plant-wide automation of a production plant – including planning and services over the complete lifecycle. The portfolio even covers a variety of financial services to help finance complete projects.

With its plant-wide automation concept, Siemens integrates all manner of automation solutions from various machine and plant manufacturers in a single, plant-wide automation system – all along the value chain. The modular complete solution combines automation, drive, instrumentation and energy technology, as well as IT, digital planning, simulation, virtual commissioning and other services.

Plant-wide automation based on the Simatic PCS 7 process control system The groundwork for plant-wide automation based on the Simatic PCS 7 process control system is provided by Siemens’ established system architecture TIA (Totally Integrated Automation) and TIP (Totally Integrated Power), with products and systems for optimized power distribution. This is combined with the extensive industry experience of Siemens’ glass experts This experience extends from the batch house and the cold end, all the way to processing, supply and auxiliary systems. In short: Siemens specializes

64

asianglass december/january 2016

Passionate glass experts and suppliers

Dr. Harald Jodeit (62) and Dennis Schattauer (30) are a generation apart, yet united by a passion for glass. Dr. Jodeit, a doctoral graduate in engineering from the University of Karlsruhe, founded JSJ Jodeit GmbH in Jena in 1991. Still active today as owner and CEO, he is proud of all the company's innovations that have proven their worth on the market. The cutting-edge, fully electric melting furnaces for special glass and the oxy-fuel furnaces for technical glass are just two of the company's innovative products. The latter were first built by JSJ Jodeit in Germany in the early 1990s. The special electric melting furnaces for alkaline-free glass are still today without rival in the global market. Yet, individual components, such as the drainage systems built into melting furnaces, are also in great demand among major producers.

Dennis Schattauer had an interest in glass even as a young boy, when his father Ulrich began his career with Pilkington and passed on his passion for glass to his son. Even during his studies in industrial engineering he put his heart and soul into his work at GFT, which his father founded in 2005. It was there that he gained his first experience in large projects. Following the premature death of his father in 2014, Dennis Schattauer suddenly had to take over the reins as managing partner at German Floatglass Technology GmbH in Gelsenkirchen. The 30-year-old has an experienced and reliable associate by his side in Bernhard Katter, who is the managing partner. Jodeit, Schattauer and Katter initiated the close cooperation between the two businesses in Summer 2014.

Jodeit and Schattauer explain their love for glass as follows: “Glass is such an exciting, ancient material because there is always something new to discover and develop.”

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ADVERTISER FEATURE

ASIA

Genius CT-A Series Tables and lines for float glass cutting

Genius CT-A Series Tables and lines for float glass cutting

Genius CT-A is the solution designed for a new technological standard in the world of standalone tables for the cutting of float glass sheets.

Intermac offers the market a top level technological solution, by presenting a machine that has the great design and features of high productivity cutting lines at a competitive price. The idea is to enable any glass company in the world to work with the same technological level of industrial groups in ensuring an unprecedented level of reliability.

of the sheet on the worktable and allows to cut without the need to position the glass sheets against the stops, thus reducing waiting time and guaranteeing maximum precision in sheet positioning. This device also performs the function of a high precision dual zero when cutting laminated glass.

Cut lubrication The output of the oil used to lubricate the cutting wheel is regulated according to the cutting speed of the profile and the specific needs of straight or shaped cuts, while eliminating waste at the same time.

Optical shapes reader The optical reader for shapes detection executes the scanning of the template regardless of the type of material. The management software automatically regenerates the profile thus allowing instant cutting of the shape. One of the many advantages of this system is the possibility to detect internal and external profiles of the template in a single take, thus reducing the operatorâ&#x20AC;&#x2122;s time from performing multiple scanning cycles.

Ground worktable The machine bed is made with a rigid frame onto which calibrated wooden panels are fitted in order to guarantee flatness of the working area that is necessary to obtain the best results from the glass cutting or break-off operations.

Operating head The operating head is equipped with an automatic cutting pressure control system. This mechanism controls the pressure of the cutting wheel from the very beginning to the end of the cut, automatically adjusting the pressure according to the geometry of the cutting path.

The PC controlled axis speed and high quality of all the electronic and mechanical components allow the optimisation of the cutting time, thus guaranteeing flexibility and continuity of operation.

Optical reader of the glass sheet orientation The optical reader fitted to the operating unit recognises the position

66

asianglass december/january 2016

Genius CT-A offers optimum cutting results on vinyl film

Automatic mechanical alignment feet

Contact us for a test drive.

Head office of INTERMAC ASIA: +603 8084 0056 Enquiry.Asia@intermac.com

www.asianglass.com

ADVERTISER FEATURE

The complete vertical solution Vertmax is the vertical solution for the production of shower doors, A P doors, balustrading and structural glass. The fully integrated and automated process includes all internal and external machining. From cut sizes the Vertmax will automatically produce finished glass products for the furniture and building industries, integrating grinding to size, squareness, polishing and arrising, drilling and routing. All types of glass including float, laminated and multi-laminated glasses are finished to the highest quality and precision, using proven Intermac CNC expertise.

Intermac Asia Office: tel. +603 8084 0056 enquiry.asia@intermac.com www.intermac.com www.asianglass.com

december/january 2016 asianglass

67

In focus

Anaylsis

68

LISEC: A VIEW FROM THE SUMMIT AG talks to Mr Othmar Sailer, CEO LiSEC Group about the company’s thoughts for the future following its own highly successful re-branding exercise.

AG: You took a conscious decision to re-brand and concentrate on developing, perhaps, a more customer facing approach in the last 12 months – a point that has been welcomed and commented on by the industry in general; what was the strategy behind that?

Othmar Sailer: The strategy behind that was to reload the brand LiSEC: a huge pillar in this process is our growth Strategy LiSEC 2020, that foresees a doubling of turnover which goes hand in hand with developing the leading product portfolio in this industry. We will do this by analyzing and interpreting market trends and developments and heavily focusing on customers.

AG: As Europe continues to stumble, how can you mitigate any slowdown there by winning increased market share in Asia?

OS: LiSEC is in the lucky position to generate its turn over spread equally over all regions and continents – if one region slows down, the impact is not that massive. To keep balance or even enable growth other markets are growing.

AG: Are the returns in Asia as great as those in other markets in terms of the prices that can be achieved for the technology on offer?

OS: For high-end machinery and new developments: yes. In this area customers are willing to pay to get the ‘made in Austria’ quality label. In the lower range, hence our base series, the battle on prices is really severe and there is less leeway.

AG: How has the crisis in the Ukraine, and hence the subsequent effect on trading with Russia, affected your approach to that market, and how are you seeking to solve that problem?

OS: Russia and the surrounding countries are of great importance to us and we took the current situation as a chance to set up a new team and reorganize our business. This exercise is done now and the team is ready to sell and service top-notch machinery solutions.

We estimate that business will pick up in the next two till three years.

AG: Do you foresee a time when Lisec may be perceived as a company with several, equally dominant global centres, rather than a European-based technology supplier with regional supply centres? Could you see yourself evolving into a company that supplies in-region solutions, specific to local requirements, rather than a more centralized approach?

OS: For a long time still to come we will operate with one technical centre in Europe where we also have our F&E and production capacities. In this constellation, local LiSEC branches will focus on providing high-end service levels and set up and grow the local spart parts

asianglass decemeber/january 2016

Mr Othmar Sailer, CEO LiSEC Group

business. Machines and lines can be adapted for local markets, this is an absolute must and is simply required by our customers.

AG: As a global leader in the markets you operate within, you must have a constant conflict between revealing your most advanced technologies into markets notorious for their emulation and copying: what are you doing to get round this problem, or do you operate a 2-tier system of product release into those markets?

OS: We do not have a tier-2 strategy for advanced technologies. We make sure that on the one hand core technologies are protected by patents and on the other hand that we carefully select customers where we install and run prototype lines and machines. Once a solution is made available for sales, it is made available world-wide. At the last glasstec show 2014, we did even go one step further: we intentionally opened up machines and showed the latest steps we made on the level of technology – we showed innovation to grasp and understand.

AG: How has the “lisec-lite” approach – i.e. the lower cost, simpler solutions for more basic operations – been received? Do you have strict limits on the criteria for companies qualifying for such access, and do you see this as a way of supporting embryonic players into more sophisticated long-term purchasers?

OS: The base series as we call it has been very well received. In the year 2015 we already achieved our target after six months. There are no strict limits as to regions or countries. It is a product range that is highly interesting on the one hand for so called emerging markets, but on the other hand also for start-ups and newcomers in mature markets.

www.asianglass.com

Anaylsis

AG: Asides from Asia, where else are you looking for growth in 2016/17?

OS: We see growth possibilities in Southeast Asia, India and Africa and also in Eastern European countries.

AG: Many are considering West Africa to be a market with great growth potential, but difficult payment conditions. How attractive is an emerging market such as that? Or do you prefer to be in the “second wave” of technology suppliers servicing such areas and waiting for market sophistication to increase?

OS: We also consider this a highly interesting market and decided to be in the first wave and co-determine sophistication. LiSEC has been represented in this region for many years. We make road shows there with glass processors and architects and discuss trends in glass processing but also new regulations in window producing. Our base range of products perfectly matches the requirements of this market: easy to install, easy to service. This year we founded a company in Africa to support and boost our spare parts business.

AG: In addition to the existing technologies you supply and your traditional markets, does Lisec allow itself to experiment in completely new sectors of the market and the provision of entirely new solutions in markets previously not covered? Or do you prefer as a company to excel in the sectors for which you are already famous internationally?

“customers are willing to pay to get the ‘made in Austria’ quality label”

OS: LiSEC has the widest product range in the industry - we are the only machine builder who provides solutions for every step in glass processing incl. software. This demands strong teams developing the industry’s leading product portfolio. In other words: our claim ‘best in glass processing’ is also our goal and business programme. Of course we look at other technologies and markets but in the long term, glass processing will remain our focus – this is what our customers expect from us.

AG: Finally, if you had one wish for the market in the next 12 months, what would it be and how would you see that impacting yourself?

OS: My wish would be that small and medium sized companies have more courage to invest, to take the step to automated production and get more out of their machine park through process optimization – this leads to better quality and reliable & reproducible production.

6252 Calumite Asian Glass 178x124 AW

calumite.co.uk

Calumite – an essential raw material for the glass industry.

Use Calumite to: • Reduce energy consumption • Improve glass quality • Increase furnace pull • Reduce furnace temperatures • Reduce NOx and CO2 emissions • Provide a high quality alumina source To find out more call Calumite Ltd on:

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www.asianglass.com

decemeber/january 2016 asianglass

69

Window on

CHINA Export delivery value of flat glass in 2015Q1-Q3

Export delivery value of technical glass in 2015Q1-Q3

Month

Month

The month

Cumulative

The month Value (RMB’000)

Cumulative

Growth rate (%)

Value (RMB’000)

Growth rate (%)

1,796,310

-0.86

Value (RMB’000)

Growth rate (%)

Value (RMB’000)

Growth rate (%)

Jan-Feb

-

-

442,391

-11.18

Jan-Feb

-

-

Jan-Mar

237,786

-21.92

680,116

-15.74

Jan-Mar

962,120

20.16

2,769,829

6.09

Jan-Apr

239,430

-30.06

927,327

-21.3

Jan-Apr

943,722

-7.69

3,691,525

-6.93

Jan-May

258,648

-25.97

1,183,009

-22.61

Jan-May

1,080,548

6.04

4,748,835

-5.52

Jan-Jun

285,664

-30.17

1,471,814

-24.04

Jan-Jun

1,125,800

3.14

5,871,587

-4.1

1,239,498

-4.45

7,827,031

-4.14

Jan-Jul

247,734

-31.03

1,719,267

-25.14

Jan-Jul

Jan-Aug

227,264

-31.98

1,946,520

-26.01

Jan-Aug

1,120,601

-17.38

8,947,667

-6.04

Jan-Sept

218,894

-32.5

2,167,966

-26.64

Jan-Sept

1,125,290

-13.55

10,075,953

-7.02

Export delivery value of optical glass in 2015Q1-Q3

Export delivery value of daily glassware in 2015Q1-Q3

Month

Month

The month Value (RMB’000)

Cumulative

Growth rate (%)

Value (RMB’000)

The month Value (RMB’000)

Growth rate (%)

Cumulative

Growth rate (%)

Value (RMB’000)

Growth rate (%)

Jan-Feb

-

-

1,378,966

-14.47

Jan-Feb

-

-

996,008

1.77

Jan-Mar

803,173

-5.66

2,190,119

-11.82

Jan-Mar

510,626

-10.23

1,523,317

-0.48

Jan-Apr

914,873

-16.2

3,105,404

-13.07

Jan-Apr

562,056

-16.74

2,074,691

-10.57

Jan-May

909,967

2.48

4,015,973

-9.89

Jan-May

602,377

-18.06

2,683,836

-12.15

Jan-Jun

909,287

-6.94

4,925,525

-4.5

Jan-Jun

673,040

6.65

3,361,904

4.1

Jan-Jul

873,958

-18.07

5,721,602

-11.82

Jan-Jul

640,439

-0.5

4,002,243

-6.09

Jan-Aug

778,378

-18.38

6,500,462

-12.77

Jan-Aug

654,331

0.87

4,656,276

-4.92

Jan-Sept

827,806

-17.71

7,328,686

-13.31

Jan-Sept

584,017

-22.73

4,733,368

-16.42

Export delivery value of glass mirror in 2015Q1-Q3

Export delivery value of glass container in 2015Q1-Q3

Month

Month

The month Value (RMB’000)

Cumulative

Growth rate (%)

Value (RMB’000)

The month Value (RMB’000)

Growth rate (%)

Cumulative

Growth rate (%)

Value (RMB’000)

Growth rate (%)

Jan-Feb

-

-

101,020

3.69

Jan-Feb

-

-

209,108

-20.8

Jan-Mar

61,338

-9.74

164,039

-4.12

Jan-Mar

161,864

94.28

375,586

8.14

Jan-Apr

73,966

1.7

248,532

1.94

Jan-Apr

163,417

88.81

610,337

40.67

Jan-May

64,995

-10.27

313,527

-0.89

Jan-May

166,846

14.39

777,182

34.06

Jan-Jun

62,944

-3.47

376,467

-1.31

Jan-Jun

172,392

0.85

964,374

28.47

Jan-Jul

63,265

-5.37

440,241

-1.81

Jan-Jul

142,118

17.56

1,106,391

26.94

Jan-Aug

63,074

-9.89

503,316

-2.9

Jan-Aug

159,925

34.12

1,266,417

27.82

Jan-Sept

70,705

-16.35

574,021

-4.79

Jan-Sept

141,162

18.7

1,407,505

26.81

70

asianglass december/january 2016

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CO N TA INER G LASS • COSM E T IC GLA S S • F I B R E GL AS S • F L AT GL AS S • F L O AT G L A S S december/january PH ARMACEUT ICAL GLAS S • S O DI UM-S I L I C AT E GL AS S • TAB L E2016 WARasianglass E • T U B I N71G

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72

asianglass december/january 2016

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Export delivery value of glass vacuum flask in 2015Q1-Q3

Total tempered glass output, 2015Q1-Q3 (sq metres)

Month

Province

Output (m2)

China total

316,065,550

6.69

5,189,145

-10.66 -22.98

The month Value (RMB’000)

Cumulative

Growth rate (%)

Value (RMB’000)

Growth rate (%)

Beijing

Growth rate (%)

Jan-Feb

-

-

119,449

15.76

Tianjin

114,904

Jan-Mar

83,867

26.35

205,869

21.46

Hebei

11,576,357

-20.6

Jan-Apr

78,616

-1.65

284,485

14.06

Shanxi

325,203

-69.71

Jan-May

77,079

12.65

361,564

13.76

Inner Mongolia

36,085

-7.86

Jan-Jun

83,307

19.27

444,871

14.77

Liaoning

84,526

1.84

2,013,396

-23.8

Jan-Jul

74,833

9.59

519,704

14

Jan-Aug

83,881

25.34

603,585

13.81

Jan-Sept

86,891

15.47

690,476

Jilin Heilongjiang

14.02

Total flat glass output, 2015Q1-Q3 (no.cases)

91,019

8.16

Shanghai

23,177,072

19.5

Jiangsu

40,627,694

2.39

Zhejiang

57,276,618

-8.94

Anhui

36,909,270

17.37

Fujian

12,211,745

-2.76

Jiangxi

4,894,250

-17.15 35.45

Beijing

434,702

63.97

Henan

7,635,486

-32.19

Shandong

20,054,471

Tianjin

24,068,285

-0.05

Hubei

70,749,753

5.14

Henan

17,644,402

12.51

Hebei

92,785,199

-12.26

Hunan

15,533,852

38.8

Hubei

9,280,975

19.05

Shanxi

10,443,969

-23.16

Inner Mongolia

8,015,231

92.7

Liaoning

10,878,247

Jilin

3,660,699

Guangdong

53,643,381

-15.58

Hunan

7,866,944

13.45

Guangxi

4,625,456

-0.6

Guangdong

16,811,044

2.67

-49.23

Chongqing

9,505,410

-15.3

Guangxi

5,558,767

1.8

-58.5

Sichuan

38,027,670

35.61

Chongqing

15,435,275

8.79 44.87

Heilongjiang

2,831,580

-9.84

Guizhou

6,267,406

88.69

Sichuan

8,819,388

Jiangsu

38,136,311

-15.52

Yunnan

4,754,424

-41.96

Guizhou

11,540,095

73.3

Zhejiang

34,253,539

20.84

Shaanxi

14,005,437

-4.05

Yunnan

1,553,490

36.67

Anhui

17,275,336

-22.09

Gansu

1,247,791

-69.62

Shaanxi

3,563,635

121.4

Fujian

37,572,855

-5.32

Qinghai

2,947,000

-37.29

Gansu

92,496

-36.85

Xinjiang

6,384,306

7.18

Ningxia

3,275,821

9.82

Xinjiang

41,463

65.4

Jiangxi

2,848,500

-30.4

Shandong

55,965,636

-10.39

Total insulated glass output, 2015Q1-Q3 (sq metres)

Total laminated glass output, 2015Q1-Q3 (sq metres)

Province

Output (t)

Growth rate (%)

Province

Output (m2)

Growth rate (%)

China total

87,573,053

2.98

China total

64,047,139

5.95

Beijing

1,201,028

-22.36

Beijing

2,014,652

-4.76

Tianjin

1,779,438

-12.44

Tianjin

2,094,632

150.58

Hebei

2,381,060

34.52

Hebei

2,672,558

-8.73

Jilin

27,990

10.81

Heilongjiang

76,744

50.48

Shanxi

304,821

-67.77

Shanghai

1,560,112

-4.87

Jiangsu

8,893,190

-0.63

Zhejiang

3,878,197

8.2

Anhui

4,698,901

19.79

Fujian

3,003,516

1.69

Jiangxi

16,125,309

-15.42

Shandong

5,021,501

22.24

Henan

1,188,923

8.32

Hubei

15,774,062

-18.71

Hunan

3,419,061

29.74

Guangdong

3,350,941

10.58

16,357

-47.74

Chongqing

6,106,202

Sichuan

5,219,835

Guangxi

Jilin

154,302

-31.28

Province

Output (t)

Growth rate (%)

China total

6,190,612

1.21

Hebei

277,960

-1.08

Shanxi

302,137

-21.27

Inner Mongolia

126,171

-9.56

Liaoning

163,394

-4.1

18,826

-16.83

6,076

-43.09

368,377

10.28

Shanghai

8,251,005

3.48

Jilin

Jiangsu

1,063,324

5.24

Shanghai

Zhejiang

Jiangsu

824,234

-23.87

Anhui

1,423,788

-1.14

Zhejiang

Fujian

10,590,906

5.25

Anhui

Jiangxi

172,071

-5.63

1,005,700

22.34 -36.83

37,923

-24.9

Fujian

8,617

Shandong

1,050,396

-3.91

Jiangxi

29,208

4.76

Henan

3,548,793

19.42

Shandong

1,070,697

-3.38

Hubei

764,970

7.68

Hunan

350,423

1.83

Guangdong

19,463,826

-0.02

58.14

Guangxi

900,028

-16.47

65.04

Hainan

5,792,905

10.12

Guizhou

810,036

29.43

Chongqing

937,139

243.65

Yunnan

374,200

64.97

Sichuan

83,947

209.22

Shaanxi

2,435,392

144.06

Guizhou

Gansu

50,093

-46.21

Tibet

Ningxia

82,050

24.81

Qinghai

Xinjiang

98,915

-37.17

Ningxia

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Total daily glass output, 2015Q1-Q3 (tonnes)

Henan

356,779

-22.1

Hubei

544,647

-2.34

Hunan

216,130

-15.24

Guangdong

467,446

2.14

Chongqing

322,475

31.95 16.2

Sichuan

583,811

33.2

Guizhou

69,045

1.75

1,553,009

264.74

Yunnan

14,890

-10.8

29,380

32.82

Shaanxi

12,992

-3.25

16,639

22.43

Xinjiang

53,164

12.45

123,540

december/january 2016 asianglass

73

Anaylsis

Refractory Zone Coping with turbulent situations In his latest exclusive offering to Asian Glass, Carlo Ratto discusses how continually fluxing situations in world economies affect the outlook for refractory producers.

While struggling in a hot July in southern Europe, under the tyranny of the high pressure caused by the African anticyclone, I thought how much things have changed in the world of glass and relevant refractory materials during the recent group of years, under the pressure of formidable shaping forces, such as globalization, financial and economical crisis.

Something largely unmanageable by the economy traditional tools, similarly to climat changes, far out of control when trying to manage with the traditional maneuvers of politics around the world.

So, after a reality check, we must give up the unrealistic hope of driving the global perturbations, and instead put all our effort in sailing a very stormy ocean to the primary scope of surviving and, yes, being successful with our organization in an extremely selective environment, where even the very concept of competition is changed and every day changing.

In my climatic similarity, only a crazy person could think about changing directly the reality of a Mediterranean Sea warming up out of control, but the wise man will start building tornado shelters where never in the past it was necessary.

When trying to ride a wave of changes, the most valuable asset is, of course, information, the capability of analyzing it and to elaborate mediumlong term trends with variable level of reliability.

Beside this, the analysis must support a continuous

74

asianglass december/january 2016

stream of tactical suggestions that dictate how to cope with a rapidly changing environment, scattered with risks and some unconventional opportunity.

Strategic marketing, business development, R&D, are providing the needed technical intelligence to put the financial control room in condition to make the decisions with acceptable level of confidence and on time. The ideal configuration for an efficient company is therefore including the highest possible capacity of collecting and understanding the most significant information, where velocity is as much important as precision to determine its efficacy; information will drive an equally efficient activity of R&D and the upper management will assume the necessary decisions at a conscious and accepted level of risk.

The question many ask is that â&#x20AC;&#x153;Are global glassmakers and refractorists acting that way, today, in this hot and moist summer?â&#x20AC;?

Well, looking at it from the limited perspective of a consultant, it seems hard and somewhat unrealistic being able to determine whether companies are driven appropriately, but looking at the evident results of the strategic decisional process, we can note that large global companies are consolidating in a very small number of huge groups, particularly in the area of container, where the pressure of changes is more important; big mergers are putting the whole management structure in a relatively long period of distress; streamlining, divestures, necessary to capture the financial advantage of the mergers and very often to comply to orders issued by public regulatory bodies. All this is not objectively easing the capacity to react very fast to external market changes.

Clearly, the solution should be to disconnect a kernel of management involved in the strategic and tactic decisions (between procurement and sales) from

P. Carlo Ratto the consolidation struggle, so as to guarantee a fast decisional capability in spite of the inevitable ongoing conflicts.

But, obviously, this is easier to say than to do, in a real organization.

In fact prominent organizations, assuming proper strategies, are making a difference and very often, the utilization of external support in specific technical sectors (such as in the procurement of strategic refractories) can be of significant help.

In the area of refractories for glass, the situation, if possible, is even more complicated.

As a consequence of a diffused global over capacity and a very reduced average profitability of the business, mergers do not make a lot of sense and, on the contrary, the major trend has been, for the recent tenths of years, toward delocalization of manufacturing volume in low cost places; this process should have been accompanied with a parallel equal (or better more-than equal) reduction of capacity in high-cost western plants, but this process, mostly due to social implications, has been and still is hard to accomplish, so contributing to increase the over capacity.

On the other side, those who did not successfully delocalize significant volumes in low-cost locations are struggling with a reduced level of sold product (not correspondent to a capacity shrink!) and forced toward a cost reduction so severe that leaves very small space for any development program.

Meanwhile, the configuration of the first global low-cost manufacturing hub, almost exclusively focused into China, is exhausting its momentum; China is progressively abandoning the role of a strong low-cost manufacturing hub for the west, due to the large labor cost inflation and to the qualitative

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Anaylsis

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Anaylsis

gap still not bridged, at least for what it is the specialty refractory for glass.

Other places such as India are now emerging as new low-cost hubs, thanks to a lower labor cost inflation rate and a less severe cultural gap.

This is a dynamic process and new locations will, beyond India, replace older when appropriate conditions will become a reality; this continuous change will pose more and more the dilemma of necessarily divest relatively high cost locations when new low-cost units are selected for manufacturing. Former long term strategies are being replaced by medium or short term plans of action, and might become tactical when convenience of more effective new delocalization will start to conflict with the productive investment turnover.

Overlapping this scenario of striving western major refractorists, there is the situation with low-cost independent manufacturers that, referring to the Chinese fused-cast refractory scenario, are still in large number (more than a handful with western export capability) and with huge overcapacity, serving a large domestic low-quality market (particularly for containers) on a regional basis and exporting in the west with an increasingly scarce profitability of the business, sometime at a loss, due to the manufacturing cost inflation and a persisting difficulty of selling these goods in the west without a delivered price gap of at least -20%.

China: change is permanent Since there is no way of reducing the Chinese labor cost inflation, nor its raw materials and energy cost, and as long as introducing levels of automation (and therefore reducing HC/ Ton) will be considered socially unacceptable, for these Chinese manufacturers there is no alternative but to bridge the quality gap for goods and services, turning the low-cost concept into a more “normal” competition game, based on the cost/quality ratio. Doing nothing will push back these once fierce

competitors to the role of domestic players, progressively reducing their price pressure on western competitors.

From the angle of view of traditional western producers, the good news, for now (and only for now) is that there are no independent low cost players (at least for fused cast refractory) in the new lowcost emerging places like India, nor in other emerging places in perspective.

“When trying to ride a wave of changes, the most valuable asset is, of course, information” Putting together all pieces of this puzzle, we have a really complicated scenario when contemplating today’s fused cast refractory situation: we have western manufacturers with lowcost delocalized capacity striving to maintain an equilibrium between average cost, overcapacity and competitiveness of the lowcost component. We also have a western player with only very minor or no low-cost capability struggling to maintain acceptable profitability in a declining volume situation.

Independent low-cost players, on the other side, are under the pressure to increase the sale price and to support this necessity

CHINA GDP ANNUAL GROWTH RATE Percent charge in gross domestic product

76

asianglass december/january 2016

with an increase of quality of provided goods and services; another positive effect of this needed evolution will be to gradually eliminate the commercial intermediaries (agents, promoters, traders) that are now providing the necessary sales-related services, but absorbing a significant level of commercial margin. To improve the quality level of Chinese goods and services, though, investments and a change in mentality are mandatory; such a possibility, looking at the present scenario, it is yet to be seen and we must emphasize that the majority of Chinese players would not be in business if they were to meet the rules of capitalist economy.

Things are changing at a fast pace in a turbulent environment; glassmakers must monitor this fluid scenario in order to capture any possible commercial opportunity, keeping under control the level of technical risk associated to a range of very different providers of refractory and services, in order to minimize the ratio risks/advantages.

Large global glassmakers must find the way to react fast in a fast changing scenario, smaller companies must access the necessary know-how in order to take advantage of low-cost sources without assuming dangerously high levels of technical risk. Both exigencies can be covered by available outsourced specialized services, providing on-demand support at a reasonable cost, compared to maintaining in-house dedicated staff.

Individual glass and refractory companies, even the largest globalized, cannot significantly impact the overall economical cycle, the same way not even major states policies can impact the global warming of climate... in both cases the best realistic strategy is adopting, together with mediumlong term strategies, tactics that will allow companies and populations to navigate in a very stormy sea, taking a competitive edge in reducing risks and capturing short term advantages, with the aim of resurfacing alive and possibly stronger from this unprecedentedly long and tough cycle, both in economy and weather.

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