Business | General
GCC plastic sector still going strong
New investments in the GCC plastic industry are set to slow next year due to the global financial crisis, but constant innovation will still drive the market to grow by 25 per cent, an industry watcher said.
- By Cleofe Maceda, Staff Reporter
- Published: 23:32 December 27, 2008
Dubai: New investments in the GCC plastic industry are set to slow next year due to the global financial crisis, but constant innovation will still drive the market to grow by 25 per cent, an industry watcher said.
The plastics industry in the GCC has been growing at an average of 20 per cent annually, with production reaching 2.3 million tonnes in 2007 compared to about 500,000 tonnes in 1990, said Satish Khanna, general manager of Al Fajer Information and Services, a company that organises a plastic industry exhibition.
The industry also attracted $5 billion (Dh18.36 billion) worth of investments last year.
Exhibition
Al Fajer is organising the ninth edition of the Arab International Plastics and Rubber Industry Trade Show and Conference, which will be held from January 10 to 13 at the Dubai International Convention and Exhibition Centre.
The exhibition space of the show, which will be attended by companies from every segment of the plastics and rubber industry worldwide, will increase by 25 per cent, a testament to the strength the plastic industry is maintaining.
"The show will have an increase of 25 per cent in terms of exhibition space. It only shows that the sector is still growing.
"The participants will come from Germany, Austria, United Kingdom, Italy, Iran, Egypt, Morocco, Korea, China, Taiwan and the US. "There will also be a sizeable participation from India," Khanna told Gulf News.
ArabPlast will also feature speakers to add educational value to the event, which is by far the biggest flagship show of Al Fajer.
Khanna said the plastics industry remains resilient amid today's economic crisis.
Today, a sizeable 10.6 per cent of the workforce in the GCC is employed in the plastics manufacturing sector.
He attributed the sector's growth to constant consumer demand, as well as industry innovation and diversification.
More economical
"The industry has also diversified into several other sectors.
"It has gone into aeronautics, automobiles and computers. And these are all highly consumable items.
"Then, there is also research on a daily basis to see multiple uses of plastics in other industries," said Khanna.
"Plastic products are one of the things you can't live without. You use them in the kitchen, bathroom, bedroom and even in your backyard.
"Plastics are durable, easy to maintain and the best part is, they're affordable.
"As a construction material, plastic is a lot more economical than steel. Plastic tubes, pipes or cables are consumed a lot in the construction, as well as in the electricity industry," Khanna added.
In order for companies in the plastic industry to weather the crisis, Khanna said, they should expand to other sectors with higher growth potential.
"The only way to survive is to expand strategically. You have to choose sectors which have the potential to grow faster than the others."
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