Plastics

The Philippine plastics industry envisions itself to be a proactively adaptive downstream industry that is able to fully supply the growing and changing demands of the domestic and export market, create employment opportunities with a positive well-informed on the environmental image and perception.

Its goals are:
o Satisfy the domestic demand and be a leading contributor to the Philippine export basket.
o Promote a high level of workforce productivity.
o Be innovative in process
o Develop a sustainable industry mindful of our limited/finite resources.
o Promote/ develop/ strengthen the plastics recycling industry.
o Create a wide range of innovative products with the best consumer value.

01

About Plastics

The Philippine downstream plastics industry refers to the plastic fabricators and manufacturers which convert plastic resins to industrial and consumer finished products. Main production processes include film and sheet extrusion; injection moulding; compression moulding; extrusion blow moulding: injection blow moulding; injection stretch blow moulding; pipe and profile extrusion; net and twine extrusion; woven sack extrusion and weaving; sheet thermoforming, printing, lamination, slitting and bag forming; and recycling.

Plastic is a widespread and pervasive material that is used by a multitude of industries in the production of numerous products. In the Philippines, industries such as the electronics, construction, food, cosmetics, packaging, and automotive are aligned with the viability of the plastics industry. Having a local source of plastic materials benefits all sectors with its adaptive, just in-time delivery capabilities, and more importantly softens the impact brought about by dollar and import requirements.

Majority of the plastics companies are situated Metro Manila, particularly in the CAMANAVA (Caloocan, Malabon, Navotas, Valenzuela) area, while others are from Manila, Pasig and CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon). There are some in Iloilo and Cebu in the Visayas, and Davao in Mindanao.

The main industry association in the plastics industry Philippine Plastics Industry Association, Inc. (PPIA).

With the coming of the ASEAN Economic Community in 2015, and given that applications for plastics are increasing from building and infrastructure, transport, automotive sectors among others, foreign investments are shifting towards the region. This creates opportunities for the industry to gain competitive advantage in the global market.

02

Facts and Figures

Philippine Plastics Raw Material Consumption

 

 

Philippine Resin Consumption

03

Policies

BPS Product Certification Scheme

The DTI’s Bureau of Product Standards lists certain plastic products as among the products for mandatory certification under mechanical/building and construction materials and chemicals and other consumer products.

The certification of plastic products is guided by the Philippine Standard (PS) Quality and/or Safety Certification Mark Scheme and the implementing guidelines for the certification of monobloc chair, stool, and plastic table.

PNS for Plastic and Plastic Products

There is a Philippine National Standard for plasticsplastic and plastic products, specifications for compostable plasticsmonobloc chair, stool, and plastic table, and PVC resin.

04

Programs

Industry Development Program

The Technical Working Group (TWG) for the Chemicals Industry Cluster – which includes plastics – serves as the coordinating mechanism through which industry concerns are addressed. The TWG is organized into four action tasks, namely:

  • FOR TRADE & INVESTMENT MATTERS – covering issues regarding industry clustering, tariff concerns, smuggling, and trade and investment promotions;
  • FOR TALENT DEVELOPMENT & INNOVATION – covering issues on skills development and introduction of innovation and process;
  • FOR EASE OF DOING BUSINESS – covering issues on assistance that the government could provide the industry as regards streamlining the permit and documentary requirements which overlaps among various agencies; and
  • FOR ENVIRONMENTAL PRACTICES – covering issues on plastic banning, life cycle assessment (LCA) and the use of the same as basis of scientific and technological studies in crafting laws that would affect the industries.

Among the TWGs activities are the following:

  • Ease of Doing Business. With the release by the DENR of EMB MC 2014-003 (or the Supplemental Guidelines for DENR AO 2007-23, prescribing additional requirements for the issuance of the priority chemical list (PCL)), the TWG was able to obtain a PCL exemption for the industry. In addition, a series of workshops for Ease of Doing Business from January to February 2015 was conducted to come up with a roadmap to streamline the processes of issuance of permits and licenses by various regulatory agencies for the chemicals industry.
  • Human Resource Development. TESDA and SPIK conducted a workshop in consultation with the various chemicals industry associations in October 2014 to come up with Training Regulations for a) plant process operators and b) QA/QC laboratory technicians. These training regulations are currently being reviewed by TESDA. After finalizing the training regulations, TESDA and SPIK shall proceed to work on the Assessment Tools for the skills identified.
  • Life Cycle Analysis (LCA) for Plastic Packaging. In view of the increasing number of LGU’s banning the use of plastics, the conduct of LCA on plastics has become a priority. This is also pursuant to R.A. 9003’s mandate for DTI to come up with a non-environmentally acceptable products (NEAP) list. In December 2014, the initial results of the LCA Study were presented by the Chairman of the Plastics Industry TWG. The LCA Consultant from DLSU presented to the group his simulation results.
  • JGSOC Naphtha Cracker. The JG Summit Olefins Corporation (JGSOC) confirmed that the first Naphtha Cracker Plant in the Philippines started its commercial operations on November 1, 2014. Currently, the downstream polymer plants of JG Summit Petrochemical Corporation (JGSPC) are already using polymer-grade ethylene and propylene manufactured from the JGSOC Naphtha Cracker Plant to produce polyethylene (PE) and polypropylene (PP) resins, for sale to both domestic and export markets. JGSOC also started to export pyrolysis gasoline (pygas).
  • Greening the Industry Roadmaps. In the 2nd Scoping Mission for Greening the Industry Roadmaps project conducted by GIZ, the Plastics Industry was identified as one of the priority sectors. Following this, BOI and PPIA collaborated in conducting a workshop on ISO 14000-Environmental Management and ISO 50001-Energy Management System Standard for PPIA-member companies in February 2015.
  • Reverse Trade Agreement. Pacific Paint (Boysen) Philippines, Inc. has entered into an MOU with SHDA on September 26, 2014. BOYSEN would be supplying SHDA with white latex paint for their housing projects. There have been similar negotiations between SHDA and two (2) other paint companies (Davies Paints Philippines, Inc. and Campbridge Paint, Inc.).
  • Product Standards for Paints. In 2014, the BPS-TC on Paints re-convened and agreed that the priority products would include Semi-gloss Latex, Gloss Enamel, and Alkyd Metal Primer Products. The product standard for Semi-gloss latex topcoat for white and light tints was finalized.
  • Comprehensive Tariff Review. A Comprehensive Tariff Review (Line-by-line tariff review) for the chemicals industry was conducted, in preparation for ongoing and future FTA negotiations. The Chapters reviewed include Chapters 28, 29, 31, 32, 33, 34, 35, 36, 37, and 38. Chapter 39 remains under review, with the PPIA and APMP finalizing their position papers.
  • ASEAN-Japan Chemical Safety Database (AJCSD) Seminar. The AJCSD’s objective is to come up with a database of all regulated chemicals in ASEAN and Japan, as well as share chemical regulatory information among ASEAN countries. A mini-seminar on the AJCSD Project was facilitated by experts from the Japan Ministry of Economy, Trade, and Industry (METI) and the National Institute of Technology and Evaluation (NITE). The TWG, regulatory government agencies, and the private sector have also agreed to establish a national database containing the regulations for Philippine chemical products. BOI is currently coordinating with PEZA to assess the feasibility of using their Chemical Importation Tool (CIT) database facility for this purpose.

05

Champions

Philippine Plastics Industry Association (PPIA)

Mr. Teo Kee Bin
President

122 A. del Mundo St. cor 10th & 11th Ave., Grace Park, Caloocan City

Tel. No. : (632) 361-1160; 330-4423; 330-4424

Email: ppia@tri-isys.com

Board of Investments (BOI)

Dir. Evariste M. Cagatan
Sectoral Champion

Industry and Investments Building,

385 Senator Gil Puyat Ave,

Makati City Philippines

Tel. No.: (632) 890-9329

Email: EMCagatan@boi.gov.ph