03 April 2012 21:52 [Source: ICIS news]
DUBAI (ICIS)--Turkey's plastic processing capacity is expected to hit 11m tonnes by 2016, with an average yearly growth of about 10%, supported by the young demographic profile, availability of gas, ideal geographical location and low plastics consumption per capita, an industry executive said on Tuesday.
In 2012, it is estimated that plastics processing capacity will be about 7.9m tonnes in Turkey, ranking as the third largest European Union country in terms of plastics goods production, said Barbaros Demirci, General Manager of Turkish Plastics Research Development & Educational Foundation.
He was speaking at the market seminar of the 3rd GPCA (Gulf Petrochemicals and Chemicals Association) Plastics summit which runs until Thursday in Dubai.
“Given the average age of the country at 29 and a fast growing local population to reach 82m by 2015, the domestic market remains unsaturated and it has large growth potential in terms of plastics consumption,” Demirci said.
Secondly, the presence of the 3m metres long natural gas bridge between Asia and Europe, which will be laid mostly in Turkey, will turn the country into an important energy terminal and corridor, he said.
Also, Turkey being centrally located to Europe, central Asia and the Middle East, facilitates the trading of plastics resins and finished goods inter-regionally, he added.
“Although Turkish plastics consumption per capita of close to 70kg is above world average, this figure still lags behind those of developed countries. This shows the Turkish plastic industry has room for further growth,” he said.
In 2011, the production of finished plastics totalled to 6.8m tonnes, a 9% increase from 2010, he said, adding that the packaging sector was the main driver in plastics conversion in the same year, accounting for 40%, followed by construction at 22%.
“The packaging industry will grow on an average of 10% yearly [until] 2016, while the construction segment will grow at 8%,” Demirci said.
About 2.2m tonnes of plastics construction goods will be produced by 2016, and about 45% will be exported on the basis that 5.5m tonnes of new housing will be in demand in 2016 because of the rapid population growth and urbanisation, he said.
With strong expectations that the plastics converting industry will grow faster than the country’s GDP of high single digits, Turkey still has a trade deficit on plastics resins, Demirci said.
“We estimate that Turkey will be of 10m tonnes plastics resin deficit by 2016, from the existing 7.1m tonnes,” he said.
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