Aug 25, 2016

Plastic Industry Still Reliant on Imported Raw Materials

Myanmar’s plastic manufacturing industry still relies upon imported raw materials due to insufficient domestic supply, according to chairman of Myanmar Plastic Industries Association.

There are 4,000 plastic manufacturing factories in Myanmar producing plastic and related products, but there are no refineries to produce material for plastic manufacturing factories. Therefore, the factories have to use waste-plastic to produce finished products.

“We use waste plastic because of raw material shortages, but that is not enough to supply demand. We have to import raw materials from abroad. There may be potential to build factories for specific raw materials for plastic production in Myanmar,” the association’s chairperson U Tun said.

Plastic raw materials are being imported from Thailand, Singapore, Japan, Taiwan and Saudi Arabia. Plastic products such as plastic bag are being exported to Japan and rest are sold in the domestic market.

Producing plastic raw materials locally will reduce costs, U Tun said, as it will cut down shipping fees and global price fluctuations will then have minimal impact.

Plastic manufacturing factories are mostly located in Yangon, Mandalay and Taungyi. They produce plastic and its related products including plastic bags as well as furniture.

U Tun said the government should also consider providing loans for plastic producing small businesses with low interest.

The fifth Myanmar Plas Print Pack Exhibition was held from July 15 to 18 to foster Myanmar’s plastic and its related production industry. About 250 firms from Bangladesh, China, Germany, India, Italy, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, United Kingdom, United States and Vietnam took part in the exhibition.

Source: Myanmar Business Today