|PLASTEX 2016 Your Way to a Promising Region:|
Due to recent reforms and development changes, increasing population needs, and technological advancements, the MENA region is a promising platform for many key industries over which the plastics industry is crowned. In Saudi Arabia, there are more than 580 downstream plastics manufacturers who are all eager to the utmost developments in plastics machinery & technologies. Qatar has lately been very active in petrochemical & plastics industries with a government-financed bunch of companies established in the last decade. The region is known to be the largest source for plastics raw materials and due to the increasing demands for end products, more new factories are under-construction. The demand is expected to further grow for the next five years over plastics manufacturing technology.
Some regional countries like Libya, are also taking bold strides towards manufacturing & foreign investment in petrochemicals, while other countries specially in the Gulf region, are importing their plastics end products either from Europe, Far East or neighbouring countries like Egypt & Syria & Saudi Arabia. The packaging industry in the region consumes over a large proportion (50% in Egypt) of the total annual consumption of various types of plastic raw materials. The main portion of which is oriented to food packaging plastics.Egypt, the Perfect Strategic Venue for PLASTEX 2016:
One of the most important advantages of PLASTEX 2016 is that it will be held in Egypt, the gateway to the whole MENA region.The geographical location of Egypt is strategic for trade, as Egypt is the natural hub between the Middle East, North Africa and Mediterranean Europe. Moreover, Egypt is the most populous country in the region, and has the second largest economy after Saudi Arabia. Compared to neighbouring countries, technology and industrial education is widely spread and technically-know-how skilled base of labour is easy to find.
The plastics industry in Egypt is growing steadily and becoming increasingly modernized. There are substantial opportunities for foreign manufacturers to start or expand their business in Egypt. According to 2005/2006 figures, there are 1276 factories in Egypt with total market volume of US $ 4.03 billions and total investments reaching about US $ 4 billions. Egypt consumed plastic materials and resins worth nearly US$1.6 billion. Demand is expected to grow at 10% annually for the next three years, due to the increasing number of newly established factories.
Although relatively low income dampens down demand, it also reflects relatively low wages, which give Egyptian labour a competitive advantage specially for such technical industries served by PLASTEX 2016. In addition, The legal system in Egypt has issued adjudications in favour of foreign firms and significant cuttings in customs tariffs at the end of 2004. These might be some of the reasons that encouraged multinational companies to have their area branches launched in Egypt to serve the whole region.
The new tariff cutting law issued in September 2004, was applied on plastics machinery, raw material and end products. The law cut down tariff on plastics machinery and equipment to only 5% and the same for Polypropylene and Polymers (2% for medical applications), 12% for Polyethylene, while the tariff for end products like pipes, tubes and hoses and their fittings is 22%. So, there is a powerful tendency towards supporting local product manufacturing to cater for the increasing market needs.
PLASTEX 2014 is this way offering fabulous business opportunities for machinery manufacturers to penetrate the market or help them reach agents and/or distributors for their products in the region.