ECER Plastic Park CLusters

OVERVIEW
Malaysia is already one of the largest plastic producers in Asia with the industry becoming increasingly dominant in Malaysia's export mix. In 2008, total trade for plastic products increased by 3.9 per cent to RM14.94 billion (2007:RM14.38 billion).

The total exports of plastic products in 2008, recorded an increase of 11.5 per cent to RM9.34 billion compared with RM8.38 billion in 2007, accounting for 1.4 per cent of total manufactured goods. Key export markets for Malaysia's plastics industry include Singapore (19.5 per cent) followed by Japan, UK, USA and Thailand.

The main export items were packaging materials such as plastic containers and bottles, plastic bags and sacks, plastics stoppers, lids and caps and plastic plates, sheets, film, foil & strip. Other major item was articles of plastics such as plastics pipe sealing tape, plastic for medical or surgical and frames as well as plates, sheets, film, foil and strips and plastic containers and bottles, plastic bags and sacks, plastic stoppers, lids and cap.

KERTEH PLASTIC PARK (KPP)
The KPP was built under the ECER masterplan to develop the petrochemical industry stream. Currently, the Oil and Gas sector contributed eighty per cent of Terengganu’s GDP. The park, located within the East Coast Economic Region (ECER), aims to promote further downstream investments in the plastics and plastic-related industries by tapping into the potential synergies with the nearby Kertih Integrated Petrochemical Complex (KIPC) which consist of the oil, gas petrochemical and supporting facilities within the Petronas Petroleum Industry Complex, with investments worth RM70 billion.

It is aimed at adding value to the national hydrocarbon resources by moving up the product value chain and expanding downstream activities in the petrochemical industry into plastics and plastics-related industries.

Other than enhancing the competitiveness of Malaysia’s plastics industry, it provides a focused development to cater to the needs of the industry. Developed on a 140-hectare site known as Lot Q next to KIPC; the Kertih Plastics Park will house plastics and plastics-related industries.

By building this park, the local value chain for the country's petrochemical industry is expected to be extended and encourage innovation in end-product plastic manufacturing. KPP would also serve as a haven for developing and enhancing capability in the local plastics industry by providing technical and vocational training to complement the work of the local educational institutions.

KPP is expected to produce product within Malaysia as well as the global market. The park expects the industrial lots to be fully taken up by 2015. It also targets to attract RM2 billion worth of investment and creating more than 7,000 jobs in the manufacturing, support and ancillary services. The private sector, especially small and medium enterprises are encourage to seize the opportunity to establish their plastics and plastic-related factories in KPP. The success of KPP is based on the easy access to feedstock and availability of existing infrastructure and support services in KIPC. The access to reliable and just-in-time feedstock supply translates into savings in logistics and warehousing cost.

It is also expected to spur the development of other sectors such as food and automotive as well as encourage the development of local small and medium scale enterprises, which will feed off the critical mass at the Kertih Plastics Park.

This project is in response to the need to enhance the competitiveness of Malaysia's plastics industry. The KPP will provide focused development to cater to the specific needs of the plastics industry. The other plastics parks in the world are Dow Olefinverbund GmbH Value Park in Germany, Jain Plastics Park in India and Abu Dhabi Polymer Park in United Arab Emirates.

ECER MASTERPLAN UPDATES
ECER aims to attract investment of RM112 billion between 2008 and 2020 of which 47 per cent consisting of private investment both locally and outside Malaysia. By June 2009, 77 of 105 projects would be implemented. ECER aims to transform Pahang, Kelantan and Terengganu into a developed region by 2020.

Currently, ECER as Malaysia's first fully- integrated 140-hectare Kertih Plastic Park (KPP), has already attracted RM145 million in investments via Hi-Essence Cable Sdn Bhd, manufacturer of wire and cable, is investing RM85 million, Latenfield Pipe Industries Sdn Bhd, RM40 million, while FMD Polypipes Industry Sdn Bhd will invest RM20 million to manufacture plastic pipes.

CURRENT KPP OCCUPANTS
Latenfield Pipe Industries Sdn Bhd
- Investment of about RM40.23 million to building its first factory to manufacture pipes.
- Located on a 4.8 hectare site within the plastic hub, the Latenfield factory will produce Modified Polyvinyl Chloride (MPVC) pipes that do not easily deteriorate and are of a high quality to cater to the agricultural industry, water reticulation and sewage, mining and cabling as well as that for internal piping.
- Latenfield is optimistic of netting RM40 million in annual sales when the new factory begins operations in two years time with orders for the MPVC pipies were expected from overseas, especially from among Asean countries under its brand as well as an orginal equipment manufacturer.
- MPVC is a product widely accepted in developed countries such as Australia and New Zealand for application in pressure piping. It is produced by combining a PVC resin with a polymeric switching agent, to yield a strong finish for the end product.
- The MPVC pipes, made from PVC resin combined with a polymeric switching agent, will have higher strength and will not deteriorate easily compared to conventional pipes. These pipes can be used in plantations, for water reticulation and sewage, mining and cabling as well as for internal piping.
- The MPVC compound was developed at the Petronas Polymer Technology Centre. The MPVC pipes, which could last up to 50 years against some 15- year lifespan for conventional PVC pipes, are used at the KPP, he said.Currently, MPVC is widely used in developed countries such as Australia and New Zealand in pressure piping.
- At the KPP, Latenfield will cooperate with Vinyl Chloride (M) Sdn Bhd, a Petronas subsidiary, who will supply the MPVC compound as well as the technical assistance.

Hi-Essence Sdn. Bhd.
- Investment worth RM85 million to build a cable and plastic wire factory.
- Callaboration with the Taiwan Stock Exchange-listed Hua Eng Wire and Cable Ltd for transfer of technology and technical collaboration, as well as with Petronas Polymer Technology Centre for technology collaboration on wire and cable products.
- Callobaration with Petronas through a technology agreement to do research and design in PVC (polyvinyl chloride), plastic polymer and polyether. This collaboration will help develop these products locally in the future as they were currently sourced overseas.


CONCLUSION
In view of attractive tax incentives and dedicated infrastructure to export plastics, Malaysian plastic manufacturers should deliberate in setting up factories at KPP. Currently, plastic manufacturers have long been scattered throughout Malaysia and KPP with its more systematic clustor development offers the opportunity to be vertically integrated with just-in-time delivery and warehousing.

By tapping the Kertih Integrated Petrochemical Complex, plastic manufacturers can benefit from reliable and just-in-time feedstock supply of plastic resin and savings in warehousing and logistics costs. Plastic exports can be shipped out from Kuantan Port via a dedicated railway line which was developed earlier by Petronas to serve its need between Kertih and Gambang petrochemical plants.


REFERENCE

1. “Kertih Plastic Park : Malaysia’s First Fully Integrated Plastic Hub”, East Coast Economic Region Development Council (ECERDC), 2008
2. www.ecerdc.com
3. www.bernama.com


PLASTIC MANUFACTURERS IN THE EAST COAST – MATRADE MEMBERS

GERFLOR-ZIL FLOORING (M) SDN BHD
LOT 38, KAW PERINDUSTRIAN BENTONG28700 PAHANGMALAYSIA
Telephone: 6 - 09 - 2221514 / 09 - 2221506
Facsimille: 6 - 09 - 2221500
Business Enquiries: ROHIZAT ABDUL, MUHAMAD ANUAR MAT BAKAR
Email: scrap@streamyx.com
Product(s): PVC VINYL HOMOGENEOUS TILES, VINYL COMPOSITION TILES

GLOBAL GREEN PACK SDN BHD (FORMELY KNOWN AS WEBSCAPE SDN BHD)
A 101, 2ND FLOORSRI DAGANGAN, JALAN TUN ISMAILKUANTAN25000 PAHANGMALAYSIA
Telephone: 6 - 09 - 5134533 / 5151561
Facsimille: 6 - 09 - 5151274 / 5365748
Senior Executive: SYED ABD RAHMAN ALHAMID
Business Enquiries: SYED ABD RAHMAN ALHAMID, SYED ABD RAHMAN ALKHARID
Email: ggpack@gmail.com
Website: http://www.ggpack.com
Product(s): POLYSTYRENE PALLETS

PLASTIC MANUFACTURERS IN THE EAST COAST UNDER – NON MEMBERS

FM PLASTIC INDUSTRIES SDN. BHD.
Lot PT 10014, Kawasan Perindustrian Jakar 3
24000, Kemaman
Terengganu
Tel: 09 – 868 1102
Faks: 09 – 868 1101
Contact : Mr. Mohamad Pauzi bin Ismail, General Manager
Products:
· PE Heavy Duty Bagging Film (Form, Fill & Seal (FFS) Bag)
· PET Bottles
· Plastic Bags
· Zipper Bag for medical usages

FMD POLYPIPES INDUSTRY SDN BHD
Wisma FM Holdings
No.10, Persiaran 65C,
Pekeliling Business Centre
Jln. Pahang Barat,
50300 Kuala Lumpur
T: 03-4022 1010
F: 03-4025 1010/4021 1010
E: fmh@streamyx.com
Contact: En. Shamsudin bin Dato’ Hj. Musa, Asst. Secretary General
019-235 1010 / sudin1010@gmail.com


HI-ESSENCE CABLE SDN BHD
No.2, Bandar Puteri
47100 Puchong, Selangor
T: 03-8061 3793
F: 03-8061 2493
E: www.he-cable.com
Contact: Mr. Roy Fong T.L / Sales Manager
019-312 0685 / royfong@he-cable.com
Products:
· Wire and Cable Manufacturers
o Power Cable
o Marine Cable (Ship / Offshore Platforms)
o Communication Cables
o Chemical, Oil & Gas Plants / Refineries
o Control & Instrumentation Cables
o Fire Resistent Cables
· Transformers and Cable Glands


LATENFIELD PIPE INDUSTRIES SDN BHD
Lot 79, Jln. Kuala Berang,
Padang Midin (Tmn. Koperasi)
21400 Kuala Terengganu, Terengganu
T: 09- 631 3188
F: 09- 622 6188
Contact: Mr. Chong Chow Yee / Managing Director
019-900 0100 / cychong@epms.com.my
Products:
· Pipes