analysis of the plastic product sector in brazil

Project EUROPEAID/ 11 9860/C/SV/multi “Network of Technological Centers”

STUDY OF THE MARKET DYNAMICS AND TECHNOLOGICAL INNOVATION, AS WELL AS THE POTENTIAL FOR COOPERATION BETWEEN THE EU AND BRAZIL FOR PRODUCTS OF MUTUAL INTEREST AND SIGNIFICANT TECHNOLOGICAL CONTENT

PLASTICS MANUFACTURING SECTOR

PHASE III

FINAL REPORT

07/21/06

Report presented in the Seminar held 06/26/2006, prepared in July of 2006 by the experts Afonso Henriques Neto and Antoni Viladomat Vers, selected in the scope of the framework contract signed with the delegation of the European Commission and the company ATOS ORIGIN.

EUROPEAID/119860/C/SV/multi – Sectorial Study – Final Version – Plastic Manufacturing 2

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Project EUROPEAID/ 119860/C/SV/multi

STUDY OF THE MARKET DYNAMICS AND TECHNOLOGICAL INNOVATION, AS WELL AS THE POTENTIAL FOR COOPERATION

BETWEEN THE EU AND BRAZIL FOR PRODUCTS OF MUTUAL INTEREST AND SIGNIFICANT TECHNOLOGICAL CONTENT IN THE

PLASTICS MANUFACTURING SECTOR

PHASE III- SECTOR STUDY – FINAL VERSION

TABLE OF CONTENTS PART 1 - INTRODUCTION ........................................................................................... 6

1.1. PRESENTATION ............................................................................................. 6 1.1.1 Scope of the Study........................................................................................... 6 1.1.2 General and Specific Objectives ..................................................................... 6 1.1.3 Critical analysis of available data.................................................................... 7 1.1.4 Concepts and Methodology............................................................................. 7 1.1.4.1 Concepts ....................................................................................................... 7 1.1.4.2 Methodology .............................................................................................. 10 1.1.5 Execution....................................................................................................... 11

PART 2 – ANALYSIS OF THE PLASTIC PRODUCTS SECTOR IN BRAZIL ........ 12

2.1. MACROECONOMIC CHARACTERIZATION........................................... 12 2.1.1. Economic Indicators – BRAZIL .................................................................. 12 2.1.2 Industrial Production in Brazil ...................................................................... 13 2.1.3. The Leading Sectors ..................................................................................... 14 2.1.4 Level of Installed Capacity............................................................................ 16 2.2. THE PLASTICS PRODUCTION CHAIN IN BRAZIL................................. 16 2.2.1. General Overview......................................................................................... 16 2.2.1.1. The resins and compounds production industry........................................ 17 2.2.1.2. Engineering Plastics .................................................................................. 21 2.2.1.3. Special Plastics, Blends and Compounds.................................................. 21 2.2.1.4. Biopolymers and Nanocompounds ........................................................... 22 2.3. SEGMENTATION OF THE PLASTICS TRANSFORMATION INDUSTRY............................................................................................................ 26 2.3.1 Breakdown by Market ................................................................................... 30 2.3.1.1 Packaging and Disposables ........................................................................ 31 2.3.1.2. Civil Construction ..................................................................................... 34 2.3.1.3. Technical Components .............................................................................. 35


2.3.1.4. Automotive and Auto parts Sector ........................................................... 35 2.3.1.5. Electric-Electronic Sector......................................................................... 38 2.3.1.6. Medical-Hospital equipment ..................................................................... 40 2.3.1.7. Agricultural ............................................................................................... 41 2.3.1.7. Shoes and Accessories............................................................................... 42 2.3.2. Breakdown by Production Process.............................................................. 44 2.3.3 Tools and Modeling....................................................................................... 47 2.3.4. Machinery and Equipment for the Plastics Industry .................................... 50 2.3.5. Recycling Industry ....................................................................................... 51 2.4. Criteria for evaluating the different segments in the Sector............................ 53 2.4.1. Description of the Indicators ........................................................................ 55 2.4.2. Scoring Criteria ............................................................................................ 56 2.4.3. Classification of the Priority Segments ........................................................ 57 2.5. Technological Centers for the Plastics Sector ................................................. 57 2.6. Local Productive Arrangements – LPAs....................................................... 58 2.7. Priority Segments for Cooperation.................................................................. 59

PART 3 – ANALYSIS OF THE EU PLASTICS SECTOR .......................................... 62

3.1. MACROECONOMIC OVERVIEW IN THE EUROPEAN UNION ............ 62 3.2. THE EUROPEAN PLASTICS MANUFACTURING INDUSTRY .............. 63 3.2.1. Classifying Europe using geographic criteria ............................................. 67 3.2.2. Lines of work in accordance with the association PlasticsEurope............... 69 3.3. DETAILS ON THE SEGMENTS CONSIDERED ....................................... 71 3.4. BILLING FOR THE DIFFERENT SEGMENTS.......................................... 73 3.5. NUMBER OF COMPANIES BY SEGMENT ............................................... 74 3.6. VOLUME CONSUMED BY SEGMENT (tons)............................................ 75 3.6.1. Packaging ..................................................................................................... 75 3.6.2. Agriculture.................................................................................................... 75 3.6.3. Building and Construction (B&C) ............................................................... 76 3.6.4. Automotive................................................................................................... 76 3.6.5. Electrical and Electronic (E&E)................................................................... 76 3.7 MSC PARTICIPATION FOR EACH SEGMENT......................................... 78 3.8. GROWTH ....................................................................................................... 86 3.9.- MACHINES AND EQUIPMENT................................................................. 87 3.10. EVOLUTION OF THE MOLD SECTOR, ACCORDING TO THE TYPES OF CLIENT COMPANIES ...................................................................... 88 3.11. RECYCLING ................................................................................................ 90 3.12. INDUSTRIAL AND TECHNOLOGICAL PROCESSES............................ 96 3.13. TECHNOLOGICAL INVESTIGATION AND DEVELOPMENT IN THE EU OF TECHNOLOGICAL SUPPORT NETWORKS....................................... 97 3.13.1. EU-ROPLAS.............................................................................................. 97 3.13.2. EARTO....................................................................................................... 98


3.13.3. Details on the centers in Germany, Spain, France and Italy .................... 102 3.14. SEGMENTS WITH THE GREATEST POTENTIAL AND PRIORITY SEGMENTS......................................................................................................... 111 3.15. EXAMPLES OF SUCCESS ....................................................................... 113 3.16 – SUB-SEGMENTS AND PRIORITY MARKETS.................................... 114 3.16.1 Trends........................................................................................................ 114 3.17. AREAS OF OVERLAP WITH THE ELECTRIC-ELECTRONIC SECTOR............................................................................................................... 116

PART 4 –EU-BRAZIL COOPERATION.................................................................... 118

4.1 – TECHNICAL PLASTICS FOR THE E&E AND MEDICAL-HOSPITAL SECTORS ............................................................................................................ 118 4.2 – WASTE MANAGEMENT TECHNOLOGIES.......................................... 118

PART 5 – TRENDS AND CONCLUSIONS............................................................... 119

5.1. TRENDS ....................................................................................................... 119 5.2. CONCLUSIONS........................................................................................... 120 5.2.1. PROBLEMS FACED BY THE SECTOR ................................................. 120 5.2.2. FIELDS OF DEVELOPMENT.................................................................. 121

PART 6 – SUPPORT MATERIAL.............................................................................. 122

6.1. INFORMATION SOURCES........................................................................ 122 6.2. WEB SITES .................................................................................................. 123 6.3. OUR THANKS ............................................................................................. 126 6.4 CONSULTANTS ........................................................................................... 127

PART 7 – ANNEXES ................................................................................................. 128

7.1. LIST OF ANNEXES.................................................................................... 128 Annex 1: Examples of Success: Electronic Plastic ............................................. 129 Annex 2: Breakthrough in biodegradable cosmetics packaging .......................... 131 Annex 3: Rapid prototyping, the solution for people who need to make decisions quickly and efficiently. ......................................................................... 132 Annex 4: Article about trends in the plastics sector, according to NPE 2006 ..... 133 Annex 5: Packaging for Electronics..................................................................... 135 Annex 6: Article about new technology to convert plastic waste into fuel.......... 137 Annex 7: Example of Technologies in the Plastic Manufacturing Sector (ENGEL) .............................................................................................................. 140 Annex 8: Technological lines of Investigation for the ASCAMM Technological Center ........................................................................................... 142 Annex 9: Scoring spreadsheet for the different Segments of the Plastics Manufacturing Sector: .......................................................................................... 143 Annex 10: Structure and competition within the Brazilian Industry................... 144 Annex 11: CNI Special Opinion Poll – Year 3, No. 3, Nov/2005 ...................... 146 Annex 12: Plastics Manufacturing Industry – Commercial Trade Balance......... 147 Annex 13: Analysis of the Plastics Manufacturing Trade Balance (2005) ......... 148 Annex 14: LPA for the Santo André region – SP / Plastic – Thermoplastic Injection................................................................................................................ 149


PART 1 - INTRODUCTION 1.1. PRESENTATION 1.1.1 Scope of the Study This study covers the entire scope of Project BRA/B7-311/2000/0005 - “Networks of Technological Centers and Support for Small and Medium-Sized Companies in Brazil”, the Financing Convention for which was executed between the European Commission and the Federative Republic of Brazil on January 13, 2004. The project seeks to contribute towards the encouragement of the international competitiveness of Brazilian small and medium-sized companies. To that end, it will support Brazilian government efforts to foment the quality and technological innovation of products and processes in the selected industrial sectors, specifically through the promotion of larger and more dynamic technological and commercial interfaces between Brazilian and European technological centers and companies. The Brazilian Ministry of Development, Industry and Foreign Trade (MDIC) is the direct beneficiary of the project, as well as the entity responsible for its execution. The MDIC delegated current oversight of the project to the Financiadora de Estudos e Projetos (FINEP – Portuguese acronym for the Studies and Project Financing Agency), which acts as the operational agency. The Financing Convention for the project defines the Electric-Electronic and Plastics Transformation sectors, generally, as the priority targets for its activities. However, considering that the project has received rather limited funding, it became essential to define even more specifically a reduced number of industrial segments/markets and the themes that the project should focus on as priorities. This study intends to define these industrial segments based upon the growth and innovation dynamics analysis of various sector clusters and the recent evolution of commercial and investment relationships between the EU and Brazil. This will allow, within a general definition of the target sectors, to identify and select the specific areas of mutual interest, where the accumulated experience in EU countries can contribute with catalytic inputs that spur innovation, with high added value to the Brazilian industrial fabric. Additionally we must also consider the priorities of the Industrial, Technological and Foreign Trade Policy developed for the Brazilian Government (“PITCE”), as well as the existing potential to establish long lasting partnerships between Brazilian and European technological companies and institutions. 1.1.2 General and Specific Objectives The general objective of the study is to support MDIC and FINEP as they work to define the priority areas for the project’s intervention, as well as the identification of European and Brazilian institutions and companies that are potentially interested in establishing technological, production or commercial partnerships. The specific objective is to perform an assessment of the market dynamics and technological innovations in the Segments / Sub-segments selected from the plastics manufacturing sector, identifying those where Brazil is potentially competitive, and within these identifying which is most feasible and efficient for the development of


technological and business partnerships between Brazil and the European Union. This document represents the Market Study, PHASE III, final version, concerning the market dynamic and technological innovation for the Plastics Manufacturing sector. 1.1.3 Critical analysis of available data A critical analysis was also performed on the available documentation, from which we should highlight the following points:

Strong Points o Defined and precise reach; o Easy access to documentation; o Existence of a previous Diagnostic on Technological Centers in Brazil.

Weak Points

o There is no pre-defined breakdown by market; o There is no clear definition if this study covers Other Sector Segments

and has a significant technological and economic impact on the Plastic Manufacturing Sector;

o There is no advance definition of the Sub-Segments of the Sector. o We foundsome differences between the segmentation criteria

employed between the Brazilian and European Markets. 1.1.4 Concepts and Methodology 1.1.4.1 Concepts With the objective of proposing a list of priority segments, within the two target sectors of the project, which are relevant to the Brazilian industrial fabric and demonstrate increased market dynamics and technological innovation, the team of experts performed a critical analysis of the preliminary list, and in light of their knowledge, proposed to the Project Director the adoption of the following Methodologies, which will allow them to make selections in accordance with the project’s objectives the industrial segments as well as the clusters with the greatest potential for establishment partnerships with their European counterparts. An analysis has been performed on the various sources of domestic and international information, selected based upon their relevance to the objectives of PHASE III of the Project. Based upon these sources of information, we are able to understand the priorities of the Industrial, Technological and Foreign Trade Policy for the Brazilian Government, and to assess the financial support structure for these Sectors.

Criteria for the Segmentation of the Plastic Manufacturing Sector In order to determine a more refined selection of the Industrial Segments that present the greatest cooperative potential with the EU, we consider the starting point to be the highest number possible of industrial segments that are registered with the main Business Association involved with the sector in question.


The starting point we considered for the Plastic Manufacturing Sector in Brazil is the Segment criteria employed by ABIPLAST as well as a sub-segmentation proposal, according to the final use criteria for the products with the intent of detailing, when possible, the various segments of the Plastics Manufacturing Industry, also taking the CNAE classification provided by the IBGE into consideration (25.2).

Definition of the “ MSCs” – Micro, Small and Medium-Sized Companies We will muse the MDIC definition for the classification of Brazilian and European companies, according to the criteria of the Number of Employees and Annual Billing that serve as the basis for the publication “Brazilian Exportation by Company Size”, as described below: BRAZIL In Brazil, in addition to Mercosur parameters, used in order to provide funding for exports, we also have the definitions of the Statutes for the Micro and Small Sized Company (Law no. 9.841/99) and the “SIMPLES” (Law no. 9.317/96), which use annual gross revenue, in addition to the criteria used by “RAIS/MTE” (Annual List of Social Information) and by SEBRAE, whereby the size is determined by the number of employees: Micro-Company Small Company Medium Company

MPE STATUTE R$ 244,000.00 R$ 1,200,000.00 ---

SIMPLES* R$ 120,000.00 R$ 1,200,000.00 ---

RAIS/MTE 0 - 19 20 - 99 100 - 499

SEBRAE 0 - 19 20 - 99 100 - 499

SEBRAE 0 - 9 10 - 49 50 - 99

* This is essentially a tax simplification system, and “SIMPLES” sets forth restrictions to the inclusion of countless segments of MPEs, hence it does not apply to all MPEs in Brazil. This fact should be taken into consideration when working with the statistics obtained via this system. Source: RAIS/MTE

Law no. 9.317/96 and IN SRF no. 034/01

Law no. 9.841/99

PUGA, Fernando Pimentel. Experiências de Apoio às Micro, Pequenas e Médias Empresas nos Estados Unidos, na Itália e em Taiwan. DEPEC/BNDES. Texts for Discussion no. 75. RJ, Feb/2000.


EUROPEAN UNION The Recommendation of the European Commission, given on April 3, 1996, directed at the member states, the European Investment Bank (EIB) and the European Investment Fund (EIF), establishes the maximum limits for the definition of PMEs (described below) to be used by community and national programs designed for PMEs, starting as of January 1, 1998. Micro company Small company Medium Company

Number of employees 0 - 9 10 - 49 50 - 249

Annual turn over or Annual balance sheet

--- ---

7 million euros 5 million euros

40 million euros 27 million euros

Independence % of the capital or the rights to vote held by one or more companies that are not PMEs

--- 25% 25%

Presently, the European Union Definitions are being altered to:

- Micro company: 2 million Euros for annual turnover or for the total annual balance sheet;

- Small Company: 10 million euros for annual turnover or total annual balance sheet;

- Medium-size Company: 50 million euros for annual turnover and 43 million for the total annual balance sheet;

- Removal of the independence criteria. More than 99% of the 18 million companies existing in the EU in the various

market sectors, except for the agricultural sector, are PMEs. These companies employ 66% of the work force and generate 55% of the total turnover. Source: www.europa.eu.int (96/280/CE: Commission Recommendation, dated April

3, 1996, relative to the definition of small and mediumsized companies) www.europa.eu.int/comm/enterprise/consultations/sme_definition/index.htm Commission’s Report to the Council. Brussels, 03.01.01.

MDIC/SDP/DMPME – 12/05/02

INNOVATION Introduction of a novelty or improvement that is either productive or social that results in new products, processes or services. (Source: Law no. 10.973 dated 12-02-04, Art. 2-IV).


CNAE Classifications

CNAE Classification from the IBGE for Products in the Plastics Chain: Section D: Manufacturing Industry Division 24 : Manufacture of Chemical Products

Group 24.3 : Manufacture of Resins and Elastomers

24.31-7 : manufacture of thermoplastic resins

24.32-5 : manufacture of thermofixed resins

24.33-3 : manufacture of elastomers

Division 25 : Manufacture of Rubber and Plastic Articles

Group 25.2 : Manufacture of Plastic Material products

25.21-6 : manufacture of flat and tubular laminates made of plastic

25.22-4 : manufacture of plastic material

25.29-1 : manufacture of various plastic artifacts

2529-1/01 Manufacture of plastic artifacts for personal and at home use, reinforced or not with

fiberglass 2529-1/02 Manufacture of plastic artifacts for industrial use – except for the civil construction

industry 2529-1/03 Manufacture of plastic artifacts for use in civil construction 2529-1/99 Manufacture of plastic artifacts for other uses

1.1.4.2 Methodology In addition to the market segmentation criteria proposed by ABIPLAST and the respective sub-segmentation proposed in this study, we also will evaluate the Plastic Manufacturing Sector, according to its different productive processes. This segmentation, in our opinion, makes it easier to identify the different expertise of the Technological Centers.

Another important factor of TECHNOLOGICAL INNOVATION in the Plastics Manufacturing Industry is Plastic Resins, especially Engineering Plastics, High Performance Plastics, and most recently, the emerging technologies of Biopolymers and Nanocompounds.

These important inputs for the Sector are considered in the analysis of the Sub-segments of Compound Extrusion and Master Batches.

This study also considered the classification of the Technological Centers, identified in the Specific Diagnostic, as well as relevant information contained in the Plastic Chain Competitiveness Forum and Local Production Arrangements ( LPAs) for the Plastic Products Sector.


1.1.5 Execution Each industrial segment was evaluated using a set of indicators that express, either jointly or individually, the dynamics of the respective markets with respect to technological innovation, in an analytical perspective of the potential interest in collaborating with industrial sectors and industrial support entities for the European Union, as described in the Terms of Reference for this Study. Schedule for the Study:

The stage following the holding of the Seminar (June 26, 2006) will serve to consolidate this report and present the study and the issuance of the Sector Study – Plastic Manufacturing – Final Version. The depth of the analysis varied from segment to segment, owing to a lack of a data on a number of the segments researched. Many indicators were obtained through an analysis of secondary and tertiary data. We found that the problems associated to obtaining data on the different segments are due to the fact that the Plastics Manufacturing Sector is quite diffuse throughout the Manufacturing Industry. Generally the indices that are presented are comprised of consolidated data.

EXPERT ACTIVITIES

WEEKENDS

Phase I Brazil (Cat. I+II)

Phase I I Brazil (Cat. II) UE (cat. II)

Phase I II Brazil (Cat. II) UE (cat. I)

Approval

of the

Reports

Approval

of the

Reports

Approval

of the

Reports

Plan of Action Methodology 04/26/06 – MDIC

EU and Brazil Intermediary Reports

Draft Version of the Sector Study

06/26/06 Seminary – MDIC Conclusions Recommendations

Final Version fo the Sector Study


PART 2 – ANALYSIS OF THE PLASTIC PRODUCTS SECTOR IN BRAZIL 2.1. MACROECONOMIC CHARACTERIZATION 2.1.1. Economic Indicators – BRAZIL In 2005, we saw a slow down in Brazilian economic activity, and GDP growth slowed to 2.3% in comparison with the 4.9% experienced the previous year, caused by high interest rates and increased commodity pricing, notably in petroleum and its derivatives. On the other hand, the commercial trade balance hit a record high, strongly influenced by growth in exports to the tune of US$ 118.3 billion, against imports of US$ 73.5 billion, despite the valuation of 17% in the Real over the US dollar.

Table 1 BRAZIL- NATIONAL ACCOUNTS - 2000 / 2005 2000 2001 2002 2003 2004 2005 Population (millions/inhabitants) Population Growth Rate (%) PEA – Economically active pop. (Million) PEA / Population (%)

170 - - -

172 1.2

83.95 48.8

175 1.7

86.92 49.7

177 1.1

88.8 50.2

181 2.3

92.86 51.3

184 1.7

nd nd

Unemployment (%) 7.14 6.23 7.1 12.3 11.5 9.83 GDP on current prices (R$ billion) GDP per capita ( R$ )

1101 6476

1199 6971

1346 7691

1556 8791

1767 9762

1938 10533

GDP on current prices (US$ billion) GDP per capital ( US$ )

605 3559

510 2965

459 2623

507 2864

605 3343

796 4326

Variation rate of the real GDP (%) 4.36 1.31 1.92 0.55 4.94 2.3 Inflation rate - IPCA (%) 5.97 7.67 12.53 9.3 7.6 5.69 Average exchange rate (US$ - R$) 1.82 2.35 2.93 3.07 2.92 2.43 Exchange rate variation (%) - 29.1 24.7 4.8 -4.9 -16.8 Exports (US$ billion) 55.1 55.2 60.3 73.1 96.5 118.3 Imports (US$ billion) 55.8 55.6 47.2 48.3 62.8 73.5 Commercial trade balance (US$ billion)

-0.7

-0.4

13.1

24.8

33.7

44.8

Export evolution (%) Source: ABIPLAST – Profile 2005, MDIC – Brazilian Commercial Trade Balance Sheet 2005

- 0.2 9.2 21.2 32.0 22.6


2.1.2 Industrial Production in Brazil Brazil is one of the Latin American countries that has the most potential for sustained growth over the next few decades. It has a solid and advanced industrial sector, and it even has its hand in cutting edge technology, as is the case in the Aerospace Sector.

In order for this forecasted growth to take place, most specifically in the Industrial Sector, Brazil needs to adopt new growth standards.

According to the CNI (Strategic Map of the Industry – 2005), there was strong growth in the past decade in the importance of New Technologies based on the Information and Communication Technologies – ICT, and a significant increase in high technology product exports

Between 1971 and 2000, Agriculture and Heavy Industry played increasingly smaller roles in the global GDP, as demonstrated in the following graphic:

Graphic 1

Populational Growth Rate (%)

Real GDP variation rate (%)

Open unemployment (%)

Inflation Rate – IPCA (%)

Agriculture Industry Service


Structure of product exports manufactured in OECD countries

INDUSTRY

1990 1999

High technology

18.8% 25.3%

Medium/high technology

38.7% 39.1%

Medium/low technology

24.3% 21.3%

Low technology

18.2% 14.3% Summarizing, less than 15% of exports of products manufactured in OECD countries are produced with low technological value.

The same thing is happening in Brazil. Despite the fact that the agricultural sector has twice the participation in the GDP, in comparison with OECD countries, the service sector has already exceeded 50% of the Brazilian GDP. Participation (%) of the Classes and Activities in the GDP (Added Value) at Basic Prices

Source: IBGE – National Accounts Department Fonte: IBGE – Departamento de Contas Nacionais (*) Preliminary Data

2.1.3. The Leading Sectors The sector distribution for the industry in 2003 indicates that the manufacturing industry represents approximately ¼ of the Brazilian GDP and more than 62% of the industrial sector.

Service Industry Agriculture


The most significant segment in the manufacturing industry is Food and Beverages, which holds more than 16% of the GDP for the sector, followed by Oil Refinery/Alcohol Production (15%), Electric-Electronic (14%) and Automotive (7.5%). The segment of Rubber and Plastics represents a little less than 4% of the sector’s GDP.

Public Util. Ind. Serv.

Civil Construction

Transformation Mining

Industrial Sector

Industry – Sector Distribution (2003)Sources: (BGE (PIA 2003), BACEN and CNI

Auto/Transp.

Others

Recycling Mining Industry Food/Beverage

Textile/Clothing

Leather/Footwear

Cellulose/Paper/ Wood Celul.

Petroleum/Alcohol

Chemical

Machinery

Rubber/Plastic

Metallurgy

E&E


2.1.4 Level of Installed Capacity According to data provided by FIESP, industrial sectors generally have maintained stable levels of installed capacity over the past two years, with an average free capacity of 15% to 25%, depending on the sector.

In December of 2005, the following values were registered for the level of use of installed capacity (without seasonal adjustments) in the industry of São Paulo:

Food and beverage = 74.5%

Chemical and pharmaceutical products = 75.7%

Rubber and plastic articles = 77.1%

Paper and cellulose = 88.0%

Automotive Vehicles = 79.6%

Aggregate for the sector = 78.4% Below is historical data from the Getúlio Vargas Foundation concerning the variation of the installed capacity in the Brazilian industrial sector:

2.2. THE PLASTICS PRODUCTION CHAIN IN BRAZIL 2.2.1. General Overview In productive terms, the plastics manufacturing industry is characterized by the transformation of synthetic resins (polymers), produced by the petrochemical industry, into articles that are destined for final consumption (plastic utensils, for example), or for the demand of other industrial sectors, which incorporates the plastic manufacturing into products for final consumption (packaging, automotive, E&E, etc). Therefore, this is a rather diffuse sector within the nation’s industrial fabric. In the Plastic production chain, which uses petrochemical resins as inputs and final consumption goods as products, other activities and agents are involved.

Use of industrial capacity – ANNUAL average (%) Source: FGB/Conjuntura Econômica – 05/02//06


In addition to resin manufacturers and companies that transform plastic artifacts, other important sectors to the technological dynamics and innovation in the plastics chain are the sectors of machinery and equipment for plastics, molds and tools, in addition to the plastic mechanical recycling sector, which has experienced significant growth worldwide. Below we present a table that explains the importance of the transformation industry in the Plastics Chain in numbers: 1st generation

(gas) (1)

2nd generation

(resins) (2)

3rd generation

( manufacturing)

Installed capacity (thousand ton/year) 5,770 5,975 5,240

Number of companies 4 14 8,500

Number of employees 2,000 5.660 258,000

Value added to the product 1 PB 2.5 PB 10 PB

(1), (2) = includes RioPol (2) = PE, PP, EVA, PVC, PET, PS PB = Basic Petrochemicals Source: ABIQUIM and ABIPLAST 2.2.1.1. The resins and compounds production industry

The final products market is rather diverse, which leads to a rather dispersed supply chain. Despite the fact that there are niches controlled by oligopolies, generally parties demanding products with higher added values, free competition rules in most segments, oftentimes in regionally delimited markets, with low requirements and qualifications, where price is the most important competitive factor, such as is the case in the plastic bag sector, disposables, domestic utilities, shoes and others. In this case, conditions for accessing raw materials are fundamental for the competitiveness of the transformer.

In general, the development of applications concerns an activity primarily performed by resin manufacturers, since it is rather technical, and consists of research of the ways to modify the resin so that it can be used in certain applications (as well as final consumption or another sector’s demand), or so that its performance, via the transformation process, may be improved. This activity requires the availability of laboratorial and industrial resources, at a pilot scale that requires, in addition to capital, specialized human resources as well. These products are sold to distributors, compound manufacturers or directly to manufacturing companies. Distributors basically meet the demand of small manufacturers, whose needs are too small to be met by resin manufacturers. Through them, the resins reach a high number of small manufacturers who, generally, serve diversified market segments. The distributor’s resin price is more expensive, and can even reach 30%, and we see growth in distributor activities, both in Brazil as well as in other countries, since resin producers prefer to just deal directly with large clients. Normally the MSCs have a limited contract with large resin manufacturers, which are important players in the technological innovation process for the sector.


Therefore, the supply of technical services, which is extremely important for the MSCs in the sector, has to be supplied through other sources. It is within this context that the supply of technical services to MSCs by the Technological Centers takes on more relevance. The following graphics refer to the main resins consumed by the sector, not including Engineering, Special and Compound Plastics:

Apparent Consumption of Thermoplastic Resins – 2000/2005

Volume ( x 1.000 ton ) Variation ( % )

Source: Production -ABIQUIM – SDI Annual Report; Imports and Exports - ALICE System Jan/2006 – MDIC

Industrial use chemical products Faturamento líquido em 2005

Thermoplastic resins

Chlorine and alkalis Intermediaries for

fertilizers Industrial

gases

Other organic

chemical products

4 | Annual report | 2005 |

Basic petrochemicalsOther

inorganics Intermediaries for resins and

fibers

Elastomers

Thermofixed resins

Various chemical

products and preparations


Commercial Balance Sheet for the Plastics Chain – Forum Products

Manufactured Plastics – US$ millions

Imports Exports Balance


Thermoplastic Resins (1*) – US$ millions

Intermediary Products (2)* - US$ millions


Basic Products (3)* - US$ millions

Imports Exports Balance (3)* includes ethane, propane, benzene and p-xylene

Naphtha (4*) – US$ millions


(4*) includes other chains in the petrochemical industry, but the resin chain is the one with the highest participation


Total for the chain – Forum

Other resins (5*) – US$ millions

General total for the chain (6*)



(5*) includes Engineering Plastics, thermofixed resins and other polymers

(6*) excludes intermediaries for other products that are not the focus of the Forum

Ilégible

Ilégible


Apparent Consumption of Thermoplastic Resins 2005

(4.213 millionstons)

This graphic serves to demonstrate the significant volume of polyethylenes, with roughly 38% of the resin consumption in Brazil, which is to say, approximately 1.6 million tons. The majority of this consumption is earmarked for PET type packaging, which has approximately 506,000 tons consumed. Meanwhile the PP has shown to be a more versatile resin, whereby 1.1 million tons have been consumed by a variety of different sectors, and it is the main thermoplastic resin consumed by the automotive sector, through a special PP compounds. National Demand for Plastic Resins The new demand projections for the main thermoplastic resins anticipated by the Plastics Chain Competitiveness Forum were obtained through a study performed by UFRJ at the request of ABIQUIM / ABIPLAST, detailed below:

Plastics Chain - production (x1000 t.) Source: ABIQUIM/ABIPLAST (Profile 2005)

Consumption – ITP Production – Resins Export – ITP Export – Resins


Year EVA PEAD PEBD PEBDL PP PET PVC PS TOTAL

2004 52,121 671,120 555,929 347,738 1,030,430 439,832 631,345 283,427 4,011,941

2005 55,524 729,746 586,341 386,379 1,135,158 481,527 679,996 301,176 4,355,847

2006 59,149 793,493 618,417 429,314 1,250,231 527,176 732,176 320,037 4,730,512

2007 62,766 858,608 650,198 474,128 1,369,926 572,904 785,414 338,863 5,112,819

2008 66,627 929,066 683,612 523,621 1,500,722 622,599 842,269 358,798 5,527,314

2009 70,713 1,005,306 718,743 578,280 1,644,004 676,605 903,241 903,905 5,976,798

2010 75,050 1,087,803 755,679 638,645 1,800,967 735,296 968,626 402,254 6,464,319

2011 79,652 1,177,069 794,513 705,311 1,972,917 799,077 1,038,744 425,917 6,993,201

2012 84,538 1,273,661 835,344 778,936 2,161,283 868,391 1,113,938 450,973 7,567,063

2013 89,722 1,378,179 878,272 778,936 2,367,634 943,718 1,194,575 477,502 8,189,849

Source: ABIQUIM/ABIPLAST 2.2.1.2. Engineering Plastics According to this definition, engineering plastics and their blends are: polycarbonates (PC), polyacetal (POM), thermoplastic polyesters (PET and PBT), polyamides (PA) and phenyl polyoxide (PPO). The special PP compounds, thermoplastic elastomers (TPE) and ABS compete in performance with engineering plastics. The Brazilian Engineering Plastics and Special Plastics markets are estimated to be on the order of 130 to 140 thousand tons/year (3.2% of total resin consumption) and more than 50% of this volume results from importations. The leading segments in consumption of engineered plastics are the automotive and electric-electronic markets, which are responsible for 60% of the consumption. Despite the insignificant volume, engineered plastics have an average growth rate and added value that are higher than commodity resins. The most important resins in this segment are Polyamides (PA) and the ABS that, in the EU statistics, are considered a commodity. However, for the purposes of the Brazilian market statistics, they are considered engineering plastics. 2.2.1.3. Special Plastics, Blends and Compounds Special polymers, on the Brazilian market, represent less than 1000 ton/year and are completely imported, and often for economic reasons, the resins are imported directly by the manufacturers. Owing to these logistical difficulties, allied with processing difficulties and a high price, special polymer applications tend to be restricted to the large manufacturers. The main special resins consumed on the Brazilian market are Polyphtalamides (PPA), Phenyl polysulfate (PPS), Polysulfone (PSU) and Polyether sulphone (PES). The main market segments that use these products are the automotive, E&E and medical-hospital equipment sectors. Since these products have high mechanical and thermal performance and elevated chemical resistance, the applications of these resins are associated to products with high technological content, as for example, sensors in engine compartments, flasks and ampoules for medical-hospital equipment, supports for hemodialysis membranes, boxes for sterilizing dental equipment, supports and integrated circuit boards, among others.


2.2.1.4. Biopolymers and Nanocompounds The principal emerging technologies in the polymers sector are biopolymers and nanocompounds, which at an international level, are growing quickly, and as in Brazil, are part of the strategic policy for technological and industrial development in many different countries. Biopolymers

Industrial biotechnology, given that it is a horizontal technology, contains application opportunities in industrial sectors undergoing profound restructuring, like textiles, chemical, packaging, biomedical and sanitary products and automotive parts, based on biopolymers, for example. National alliances between pharmaceuticals and "biostart-ups" is another path – commonly practiced in the USA and in European "Bio Valleys" and "Medicon Valleys" - recommended particularly in the segment of biomarkers (diagnosis and monitoring of illnesses) and trials by order or high tech. This is the line of biotechnology “that over the long term will see the most growth". (source: www.inteli.pt) Biodegradable polymers today have an installed capacity of approximately 500.000 ton/year and a demand of 250.000 ton/year with a tendency of occupying more specific market niches, owing to costs that are still higher than those of commodities.

Today, biodegradable products generally are sold at prices between US$ 4/kg and US$ 6/kg. In biomedical applications, these polymers can even reach US$ 3.000/kg. Table that summarizes the main biopolymers found on the international market:

Polymer Manufacturer Trade Name Installed Capacity

Remarks

Polyhydroxyalkanoates P(3HB), PHA

PHB Brasil S/A Biocycle 60 ton/year Expansion to 2,000 t/year in 2007/08

PBAT/PBST/PTMAT BASF Ecoflex, Ecovio 14,000 ton/year Blends w/ PHB, contact with/

------

DuPONT Biomax 110,000 ton/year Films, blown, Brazilian manu.

Cellulose ester Novamont EasterBio 15,000 ton/year Blends with starchPLA, Lactic Polyacid NatureWorks Pla. 160,000 ton/year Biomedical PLA, Lactic Polyacid DuPONT Ecochem 45,000 ton/year PLA, Lactic Polyacid Arkke Group Lacea 500 ton/year PCL, Polycaprolactone Solvay Cappa 5,000 ton/year PCL, Polycaprolactone Dow / U. Carbide 5,000 ton/year Compostable blends Novamont MaterBi 80,000 ton/year PCL Blend,

starch, PVOH DuPONT Hidroplast,

Idrolene50,000 ton/year Water soluble

packaging Pro-degradable additives Ciba Envirocare -------- PE agricultural filmsPro-degradable additives Symphony D2W ------- Res-Brazil

distributor in Source: Prof. Telmo Ojeda (ULBRA)


The table above shows us that the major players in this market are the large resin manufacturers and companies affiliated with agri-business.

Main applications of biopolymers: PLA: fibers for surgical sutures, parts for bone implants, capsules for controlled release of drugs, fabrics (Ingeo – Santista Têxtil), blends with starch and olefins for film extrusion. PHAs, PHB: plasticulture (greenhouses, mulch), bio-medical, pharmaceutical, packaging and disposables Ecoflex: because this is a synthetic biodegradable polymer, it has better thermal stability. Development of blends with cellulose, starch, PHB and PLA to improve the processing of these materials. PLA: owing to its high production scale, its prices (US$ 2.50/kg) are already competitive with Polyolefins on the packaging and heat shaped films market. Brazilian Institutions studying biopolymers (CNPq/Lattes)

IBU – Microesferas e Lipossomas IPT – Produção de Polímeros Biodegradáveis por Via Biotecnológicas UCS – Grupo de Polímeros UDESC – Desenvolvimento de Materiais Poliméricos UFPE – Simulação e Controle de Processos Químicos UFPR – Laboratório de Polímeros Paulo Scarpa UFPR – Polímeros Naturais para Biotecnologia UFPR – Síntese e caracterização de polímeros UFRR – Engenheria de Polímeros Biodegradáveis UFSCar – Engenharia de Materiais Ulbra – Engenharia Química Unicamp – Dep. de Tecnologia de Polímeros / Engenharia Química Unicamp – Laboratório de Engenharia de Processos UNIFEST – Medicamentos Oftálmicos UNIMEP – Ciência e Tecnologia de Alimentos Univille – Materiais Polímeros USF – Engenharia e Ciência dos Materias

Nanocompounds We should cite some recent developments in this innovative area. First, the additives industry, one of the fine chemicals segments, has been offering increasingly advanced and sophisticated products, with the objective of expanding the plastics market through the incorporation of new characteristics to the final product. Additives that provide the plastic product with the appearance of a natural product (wood, for example), is one of the innovations available. Another novelty is the use of new materials as filler, for example wood chips, substituting talc, calcium carbonate, fiberglass, etc. This area also sees the application of nanotechnology to the formulation of resins, through “nanofillers”. Polymer compounds containing approximately 5% nanoclays, for example, are used in automotive applications, “barrier” films for food packaging, electrical wires and cables, and many other applications.


The global market of polymeric nanocompounds, nanoparticles, nanoclays and nanotubes has seen an annual growth rate of approximately 18.4% and may exceed US$ 211 million in billing in the year 2008. In 2003, 11,120 tons of nanocompounds were consumed with billing of US$ 90.8 million, which is to say, US$ 8,166.00 / ton.


Main applications on the global nanocompound market in 2004/2005:

Supplier & Tradename Matrix Resin Nano-filler Target Market

Bayer AG (Durethan LPDU)

Nylon 6 Organo-clay Barrier films

Clariant PP Organo-clay Packaging

Creanova (Vestamid) Nylon 12 Nano-tubes Electrically conductive

GE Plastics (Noryl GTX)

PPO/Nylon Nano-tubes Automotive painted parts

Nylon 6 Organo-clay Multi-purpose Honeywell (Aegis)

Barrier Nylon Organo-clay Bottles and Film

Hyperion PETG, PBT, PPS, PC, PP

Nano-tubes Electrically conductive

Kabelwerk Eupen of Belgium

EVA Organo-clay Wire & Cable

Nylon 6 Organo-clay Multi-purpose

PP Organo-clay Molding Nanocor (Imperm)

Nylon MDX6 Organo-clay PET beer bottles

Polymeric Supply Unsaturated polyester Organo-clay Marine transportation

RTP Nylon 6, PP Organo-clay Multi-purpose, Electrically conductive

Nylon 6 Clay, Mica Flame Retardant Showa Denko

(Systemer) Acetal Clay, Mica Multi-purpose

Nylon 6, 12 Organo-clay Multi-purpose

Ube (Ecobesta) Nylon 6, 66 Organo-clay Auto-fuel systems

Unitika Nylon 6 Organo-clay Multi-purpose

Yantai Haili Ind. & Commerce of China

UHMWPE Organo-clay

Table 1: Partial Listing of Nanocomposite Suppliers

Source: Bins & Associates, Sheboygan, Wis., Report on the prospects for nanocomposites

Soure: www.omnexus.com VacuoFlex Tecnologias Refletivas, affiliated to the Unicamp Technological Incubation Center, created an innovative nanotechnology solution, specifically for industrial development: a plastic film covered in nanoarticles, transparent to sunlight, but capable of blocking the passage of almost all of the solar radiation in the infrared spectrum,


which is responsible for heat. For decades, the major plastics manufacturers, through the use of additives, have tried unsuccessfully to produce this type of plastic, called “cold plastic” by agronomists. The most widely publicized use of the “cold plastic film” produced by VacuoFlex is agricultural greenhouses, in countries with hot climates like Brazil’s, wherein the increase of temperature is almost always undesirable, since it reduces crop yields. 2.3. SEGMENTATION OF THE PLASTICS TRANSFORMATION INDUSTRY

The Plastics Transformation Industry is a particularly important sector for the economy, for a variety of different reasons: It uses a great deal of labor, mainly when compared to other capital intensive sectors, for example the petrochemical sector, which are its suppliers. It is a sector where micro and small companies are the rule, and approximately 94.1% of the companies have less than 100 employees, productivity is on the order of 16.5 tons/employee with an annual production of 500.2 tons/company. Owing to these characteristics, it is an industry that, in Brazil, still has low levels of technological qualification and workforce training. However, technological and organizational changes are having, albeit slowly, an effect on the sector, requiring increased training of workers, in order for these changes to translate into effective competitiveness. Plastic manufacturing companies are rather different with respect to size, technological qualification, as well as the markets they serve. Entry barriers, like technological and capital barriers, are not high, and the market supports a high number of companies, with a relatively small average size and with a production volume that is concentrated highly in medium and large companies (6% of the total, which is to say, little more than five hundred companies). The inter-sector market in general requires qualifications both of a technical order as well as scale. Sectors that work with final products with a reduced margin for the tolerance of errors (like the car industry and E&E, for example), impose norms on the entire supply chain. Not only the product manufactured (part or component) but the production process itself need to be certified by the proper authorities, and this includes equipment and raw materials as well. In the case of the car industry, assembly plants tend to deal with a small number of suppliers, who have high production scales, which create economic and technological barriers to micro and small sized companies. The plastics manufacturing sector – known as the 3rd generation – includes more than 8,500 companies who employee approximately 258,000 people. The average rate of employment growth in the sector between 2000-2005 was 5%.


Distribution of companies according to the number of employees (ABIPLAST – 2005)

Studies show that employee productivity has been growing over the past few years, although it suffered a significant drop in 2005 owing to currency valuation issues, but there was also a continuous drop in production volume for the sector. This may be an indication that the sector is not adopting technological advances in a uniform manner. Comparing 2005 with 2000, productivity in the sector fell from 21 tons/employee to 16.5 tons/employee. Without a doubt, one of the factors that led to this drop was the fact that per capital consumption of plastics in Brazil held steady for six years, which is to say, the sector is expanding in accordance with the vegetative growth of the population. The following graphics show the evolution of the productivity indices for the sector over the past few years:

No active relationship

From 5 to 9

From 10to 19

Up to 4 From 20to 49

From 50to 99

From 100 to 249

From 250 to 499

From 500 to 999


Exports Despite exchange issues, Exports for the sector have performed well, both from a sales as well as a volume standpoint, thanks to programs like Export Plastic. Plastic manufacturing exports grew in volume approximately 150% over the past ten years, demonstrating that the sector is evolving in terms of competitiveness. The main items exported are packaging, disposables and semi-finished products. However, there are “indirect exports” for plastic manufacturing that are hard to measure, since they are indirectly exported through other industrialized products, as is the case with food products (meat and poultry), E&E (portable electronics and white products), Automotive (90 kg of plastic per vehicle) and auto parts.

Valu

e (2

000=

100)

Plastic Manufacturing Industry Productivity Rates

R$ 150 mi / func.

258,353 func.

16,5 ton/func.

Per capital consumption of plastic resins (kg/inhabitant)

Number of Employees

Tons per employee

R$ thousand per employee

Source: Perfil 2005 - ABIPLAST

(kg/

inha

bita

nt)


Plastics Manufacturing Industry – Commercial Trade

Thou

sand

s of

tons

US$

Mill

ions

Plastics Manufacturing Industry – Commercial Trade

IMPORTATIONS (thousands of tons)

EXPORTATIONS (thousands fo tons)

IMPORTATIONS (US$)EXPORTATIONS (US$)

Per product plastics exportation percentage (percentage by value)

Exportations - Plastics Manufacturing Volume (thousands of tons)

Chapter 39 Others (Except39 Total

Plates, sheets Packaging Tubes Domestic Utilities Others

Source: Abiplast/MDIC/SECEXElaboration: Austin Asis


2.3.1 Breakdown by Market According to ABIPLAST, the Brazilian Plastics Manufacturing Sector in 2005 did approximately R$ 38.754 billion in business and consumed 4.263 million tons of resin. Below we present a table according to the segmentation criteria proposed by ABIPLAST and the proposed sub-segmentation by sector in the creation of this report.

S-1 PACKAGING Food and beverage Drugs (blisters, flasks, bags, ampoules.....) Personal Care, Hygiene and Cleaning Chemical products (including agrotoxins) Industrial (pallets, containers, films, etc.) Others (biopolymers, special packaging, etc.)

S-2 CIVIL CONSTRUCTION Tubes and Fittings Hydraulic and sanitation equipment Flooring and coverings Industrial (frames, tools and accessories, electric-technical)

S-3 DISPOSABLE Food (cups, plates, trays,......) Personal Care, Hygiene and Cleaning

Medical-hospital (syringes, catheters, speculums, ....) S-4 TECHNICAL COMPONENTS

Automotive Electric-electronic Other (medical-hospital, aeronautic, technical parts)

S-5 AGRICULTURE Irrigation Agricultural machinery and equipment Others (biodegradable, plasticulture, etc.)

S-6 DOMESTIC USES

Domestic utensils, furniture and plastic accessories S-7 SHOES

Plastic shoes and soles

Disposables11%

Packaging42%

Comp. Técnicos11%

Civil Construction 10%

Agrícultural 9%

Other7%

Domestic Utilities5% Foot Wear

3% Toys1%

sheets1%


S-8 LAMINATES Fabrics impregnated/covered with plastic resins Paper/cards coated with plastic resins

S-9 TOYS S-10 OTHER SEGMENTS

Compound extrusion (biopolymers, nanocompounds) Master Batches and additives for plastics Office and school supplies, lighters, cases and plastic

foldersS-11 MACH. & ACC. FOR THE PLASTICS IND.

Injectors Extruders Blowers Heat shapers Peripherals and accessories Equipment and accessories for recycling

S-12 TOOLS AND MOLDERS Injection molds Blowing molds Extrusion shapers Fast prototyping

S-13 RECYCLING Mechanical plastics recycling

Note: Segments S-11, S-12 and S-13 are not computed in the sales and in the volume for the sector, however they are economically and technologically significant. Therefore, these segments will be considered in this study.

2.3.1.1 Packaging and Disposables

Jointly, these segments represent 53% of the billing for the Plastics Sector, and roughly 50% of this volume is used by the Food and Beverage segment, in other words, this segment represents 26% of Brazilian plastics consumption. According to the study performed by FGV–RJ for ABRE, the Brazilian packaging industry netted R$ 31.338 billion in sales in 2005, R$ 2.492 billion more than in 2004, with growth of 7.6% in sales, which is much higher than the growth in the industrial sector. Plastics packaging presented practically a third of the sector’s billing.


Production value: R$ 31,337.83 In 2005, the growth of formal employment was 4.6% in relation to 2004 and productivity for the sector was R$ 183,350.00/employee, and the plastic packaging segment represents 53% of the labor for the sector.

Source: Prepared specifically based upon Datamark – 2005

Expressed in millions

Glass 6.2 %

R$ 1,939,71

Metalic21,2 %

R$ 6,633.17

Wood2,1%

R$ 655,92

Paper 7.4%

R$ 2.334,03

Paper30.9%

R$ 9,681.50 Plastic 32,3%

R$ 10,093.51

Source: IBGE

Glass 2.6 %

(4,476)

Metalic 10.1 %

R$ 10,093.51

Wood 6,6%

R$ 1,939.71

Paper17.8%

(30,418)

Plastic52,9%

(90,424)

Source: Labor Ministry

Paper10.0

(17,059)

FOOD

BEVERAGES

NOT FOOD RELATED

Positions in 12.31.2005 Total: 170,917


The main uses for plastics in the rigid and flexible packaging sector are as follows:

Packaging Share FOOD

Meat and vegetablesCereals and grains

Candies and sweetsDairy and fat

R$ 3,030 million18% 30% 15% 37%

BEVERAGES Alcoholic Beverages

NON-Alcoholic Bevs.

R$ 3,430 million5%

95% NOT FOOD

Electric & AutomotiveHygiene and beautyLeisure and personal

Home cleaning Chemical and agr.

R$ 3,630 million1%

31% 5%

29% 34%

Specifically prepared based upon Datamark data (2004) The global flexible packaging industry between 1996 and 2002 grew on average by 3.2%, which is only just behind the plastic bottling industry, which presented growth of 4.2% during this period. According to data provided by the ABIEF, North Americans are estimated to consume 36% of the world’s production of flexible packaging, followed by Europe with 24%. In the flexible packaging sector, exports represent 20% of the production in 2004, with the expectation that this will draw near 30% in 2005. The sector is made up of 750 companies who did US$ 3.2 billion in business in 2005, at a volume of 698,500 tons, representing US$ 4,582.00/ton.

Development tendencies for the flexible packaging sector:

Since 2004, large companies like Natura, Boticário and Pão de Açúcar have been working on pilot projects with biodegradable packaging.

“Stand-up pouches” packaging on the food market, which in addition to

increasing the shelf life of the product, allow better drainage of moist products.

“Intelligent” packaging, which can be tracked and identified through an RFID (radio frequency identification) system. The pharmaceutical industry has demonstrated a special interest in this type of packaging, since it allows the

Flexible packaging – Billing Flexible packaging – Volume

US$

Bill

ions

Thou

sand

of T

ons


user to identify when and how many pills they have taken.

Specific packaging making use of modified atmosphere technology (MAP) for the exportation of fresh fruit.

“Retortables” packaging, which allows frozen food to be prepared right in the

packaging itself. Meat and fish for the microwave are the main final uses of these products.

Disposable products for medical-hospital use demonstrate increased growth.

Containers of 500, 750 and 1000 liters for bulk liquids. The rigid packaging is

blown or rotary molded and flexible packaging is made from a multi-layered film.

Presentation packaging design, specifically for the cosmetics and personal care

areas tend to be the big competitive differential.

2.3.1.2. Civil Construction The lack of government investments in basic sanitation and civil construction, high interest rates, poor credit conditions and the low purchasing power of the Brazilian population have reflected in the consumption of PVC, since more than 60% of the production is used by civil construction. Barriers that restrict potential plastics consumption have been known for quite some time by producers, and these unfavorable aspects have not changed much over the past few years.

Once again, 2005 was not a good year for PVC and compound producers, but the belief is that the country will resolve its long term housing and sanitation deficits, by making more short term investment funds available, caused optimism to rise in 2006. Over the past three years, PVC compound manufacturers focused their efforts on the footwear and extruded profiles sectors, in addition to increasing exports.

Thou

sand

of T

ons

Apparent PVC consumptionSource: AIPLAST


As such, participation held by Civil Construction in the Plastic Products industry fell from 12% in 2004 to 10% in 2005 and billing fell from R$ 4.9 billion to something around R$ 3.9 billion which represents a 20% drop. The pipes and fittings segment, which is dominated by large companies, has been dealing with the problem of the drop in internal demand, by increasing exports. 2.3.1.3. Technical Components

The technical components segment increased significantly in 2005, brought on by positive results in the automotive and electric-electronic industries. Its share of the Plastics Manufacturing sector rose from 10% in 2004 to 11% in 2005, and sales jumped from R$ 4,04 billion to R$ 4.27 billion with an increase of 5.7% in sales and 9.7% in volume.

2.3.1.4. Automotive and Auto parts Sector

The auto parts sector grew quite a bit in 2005, leveraged by the record performance of the Brazilian automotive industry, which represents 55% of the production for the sector. Over the past ten years, the sector has undergone profound technological and structural changes, which caused many traditional companies, unable to adapt, to disappear or merge with larger multinationals.

Source: Sindipeças / Anfavea

90 kg plastic per vehicle (projection for 2004/2008 models)

2,447,000 vehicles = 220,230 tons of plastic resins The ever-growing participation of companies in the supply chain, as modular assembly models have increased, has led to the plastics industry to perform assembly activities themselves, which was previously only performed by the final assembly plants. The need to work on the integration between the design and the tools (molds and shapes) and the production process is quite important, requiring that companies make investments in technological improvements and worker training. With the growing need to increase productivity, through automation of production processes and outsourcing of support services, we find that over the past ten years, the sector has lost 20.4% of its formal jobs.

Thou

sand

s

Automotive industry – Production Ind.


In 1994, 486 companies employed 235,000 people (483 employees/company), but in 2004, the number of companies fell to 468, which employed 187,000 people (400 employees/company), and just 35% of the companies had less than 100 employees. Micro and small companies in the sector work on the replacement market and as suppliers of technical services (tools, modeling), and components for the medium and large companies in the sector. The main technological developments in the sector are related to processing and assembly techniques for automotive components, and therefore, those which require a higher degree of technological specialty and labor training for workers:

Multi-material and gas injection processes, injections onto fabric, in mold decoration

Automated production cells of components with injection processes, insert

placement, welding and final inspection of the product

Development of new processes and blowing materials, especially for fuel reservoirs

Development of integrated OEM / System / Transformer projects.

Increase of productivity, quality and logistical efficiency of the production

process.

Auto parts – Employmetn Distribution Auto-peças 1994 – 2004

Source: Sindipeças / Anfavea

235 thousand employees

187 thousand employees

S.P-Town S.P-Interior

ABCDOthers Estates

Remaining Grade SP


Billing distribution (US$ 16.5 billion)

Inter-sector 7% Replacements

14%

Exports 14%

Assembly plants 14%

Auto parts industry

(1) : Investments / Billing Investimentos / Faturamento (%) (2) : Billing (US$ billions) Faturamento (US$ bilhões) (3) : Billing/employment Faturamento / empregado


2.3.1.5. Electric-Electronic Sector Sales in the electric-electronic sector in 2005 were R$ 92.8 billion, which was a 14% improvement over 2004. This growth may be attributed to the performance of the telecommunications, information technology and industrial equipment areas. Exports in the sector grew by approximately 9% in relation to 2004, which is generally attributed to cell phones. The return to activities in sectors that had been practically shut down in 2003, like fixed telephone lines, GTD (Generation, Transmission and Distribution of Energy) and Electrical Installation Material were also important.

Total sales by segment (R$ million) 2003 2004 2005 2005/2004 Industrial Automation 1.721 2.090 2.330 11%

Electrical and Electronic Components 6.876 8.697 8.653 -1% Industrial Equipment 8.426 10.319 11.814 14% GTD 4.449 5.581 6.557 17% Information Technology 16.701 20.624 24.437 18% Electrical Installation Material 4.593 5.947 6.392 7% Telecommunications 8.760 13.006 16.451 26% Electric-Electronic Domestic Utilities 12.421 15.338 16.180 5% Total 63.948 81.601 92.814 14%

Source: MDIC, Secex, Abinee

Commercial trade balance for the auto parts sector

US$ 6.057 billion US$ 5.595 billion

US$ 462 billion


Renewed production growth for domestic electric-electronic products in 2004 and 2005 significantly contributed towards increasing the consumption of plastic products. As is already the case with the automotive industry, this is a sector that is modularizing quickly, the MSCs that supply plastic parts to the sector will have to adapt their production and management processes to new needs, which is to say, supplying assembled subsets.

Commercial trade balance for the electric-electronic sector (US$ billion)

Source: ABINEE

The sector has also been improving its international competitiveness by gradually increasing exports, although the trade balance for the sector is still in a deficit. Emerging technologies in the sector that integrate plastics and electric-electronic components and add value to transformed plastics products:

Smart cards and smart labels, the use of which is growing in the banking and

Industrial Production Produção Industrial Source: Datamark

Uni

ts (x

1000

)

Refrigerators (x1000) Tvs (x1000)

Imports Exports

* Projection Imports Exports


services system.

“Intelligent” packaging, which use RFID (radio-frequency identification) technology.

Industrial design – development of innovative solutions for cases in general,

mainly in the portable electronics and information technology fields. Manufactured plastic products are being integrated into the production process even at the project phase, and is, often times, jointly responsible for executing all phases of the project.

Plastic compounds with special requirements to meet safety and functioning

norms for electric-electronic equipment that are increasingly demanding. In this case, we cite engineering plastics, flame retardant compounds and special polymers that meet mechanical, thermal and flammability resistance criteria.

2.3.1.6. Medical-Hospital equipment Today, companies that represent this industrial segment are in full expansion, with 269 affiliated companies.

These associated companies total 80% of the domestic sales. The medical hospital sector has a general capacity for installation in a hospital in 90 to 95% of equipment and consumption materials, under current standards. Lines of work: Implant and Medical Hospital Consumption Material Sector Companies that manufacture implantable products, like orthopedic, cardiac, neurological, breast and other types of prosthetics, and companies that manufacture medical-hospital consumption materials and hypodermics, such as: textiles, adhesives, and others that are for a single use. Medical-Hospital Equipment Sector Companies that manufacture electro-medical devices, hospital furniture, surgical instruments, physiotherapy equipment, hospital kitchens and laundries. Dental Sector Companies that manufacture dental equipment (complete consults), consumption materials (resins, amalgams and others) and Dental Implants.

Radiology and Image Diagnostic Sector Companies that manufacture X-ray equipment, process films (diagnostics) and consumables. Laboratorial Sector Companies that manufacture equipment for laboratories, reagents and others.


Plastics are becoming increasingly important in the sector, especially for hospital consumption materials, like blood bags, flasks and IV bags, syringes and sterilizable plastic materials. The development of biocompatible polymers in the implants sector is of vital importance. This is the sector with the greatest potential for innovation in the plastics manufacturing industry in the medical-hospital sector. The medical hospital equipment sector has been experiencing growth in the consumption in special plastics, such as Sulfopolymers (PSU, PES, PPS) which require, on the part of the manufacturer, technologically cutting edge molds and equipment. There is also an interface in this sector with the E&E Sector in the sensor systems that require special resins.

2.3.1.7. Agricultural

The volume of plastics used in the agricultural sector was approximately 380,000 tons and sales of around R$ 3.5 billion, representing an increase of 11.8% in volume and 7.8% in sales. The agricultural use plastics market over the past few years has grown at a rate above the sector’s average. This jump in the use of plastics is due to the benefits of technology that is generally known as plasticulture. Thermoplastic pipes, tarps and films are used in important areas, like the irrigation of the semi-arid São Francisco Valley, the increase in the quantity and quality of fruit and vegetable harvests, increased productivity of poultry and swine, and further in scale production of fish and shrimp. In addition to directly improving production conditions, plastic is present in the drying and conservation of products, forage silos (animal feed), irrigation by ditches, channels using non-traditional ditches, mulching, water storage tanks, fish tanks and water proofing of dams for fish farming, vegetation houses and drip irrigation, low tunnels,

Billing for the sector (2004): R$ 5.360 billion (US$ 1.9 billion) Exports (2004) (FOB): US$ 318 million (16.7% of billing) Importation (2004) (FOB): US$ 980 million Number of companies (2004): 269 associates Direct employment in the sector(2004): 35,786 Labor productivity: R$ 149,800.00 / employee

31.9%

9.9% 58.2%

44% 8%

48% 20.36%

79.5%

Medium Large Small

NationalForeigner

ExportsPrivateGovernment

Fonte: ABIMO


shade in the field (for cattle), irrigation pipes, liners and curtains for bird houses, ceiling liners for stalls (lowered ceiling) for the creation of swine, greenhouse films and tarps, screens for greenhouses, nets for fish tanks, diffusion hoses, tarps for grain trucks, plastic boxes for fruits and vegetables. Plastics comprise 90% of the localized irrigation system. They are used on adduction pipes and water distribution networks, joints and accessories, hoses, drippers and micro-aspersion, containers and rotary molded cisterns. In the polymers area, we would like to point out the rise in new formulations to improve the efficiency of plastics in agriculture: - Photo-selective films, also called cold films (they are being developed at an

incubator at Unicamp) - Antivirus films - Photo-degradable films - Multi-layer films for mulching - Biodegradable films for use mainly in planting areas.

2.3.1.7. Shoes and Accessories According to ABICALÇADOS, despite the concentration of large companies located in the state of Rio Grande do Sul (70% of exports on sales and 56% on volume), Brazilian footwear production has been gradually spreading to other production centers, located in the Southeast and Northeast regions of the country, especially within the state of São Paulo (cities of Jaú, Franca and Birigui) and emerging states, like Ceará and Bahia. There is also footwear production growth in the state of Santa Catarina (region of São João Batista), neighbor to Rio Grande do Sul and in Minas Gerais (Nova Serrana region). The Brazilian footwear industry today employees more than 8.4 thousand factories,

Main techniques and plastic products used in cultivation

Protected cultivation

Irrigation

GREENHOUSES TUNNELS MULCHING PROTECTIVE SCREENS SHADE SCREENS

ADDUCTION AND WATER DISTRIBUTION TUBES CONNECTIONS AND ACCESSORIES SPRAYERS MICRO-SPRAYS HOSES

Source:


which produce approximately 725 million pairs per year, of which 189 million are exported, with sales of approximately US$ 1.9 billion. This sector is one of the ones that generates the most employment throughout Brazil. In 2004, approximately 313,000 workers worked directly in the industry. The wide variety of suppliers of raw materials, machinery and components, in conjunction with product and innovation technology (especially design), has made the Brazilian footwear sector into one of the most important in the world. More than 1500 factories are installed in the country, and more than 400 companies specialized in leather tanning and finishing, annually processing more than 30 million skins and approximately one hundred machinery and equipment factories.

The Brazilian footwear industry makes use of this highly qualified structure to produce shoes, and today it exports to more than 100 countries, employing modern production administration and manufacture management concepts, with just in time and other international quality processes. This industry is highly specialized in all types of footwear: women’s, men’s and children’s, in addition to specialty shoes, like orthopedic and worker safety shoes.

2000 2001 2002 2003 2004 2005Production (million of pairs) Exports (million of pairs) Exports (US$ billion) Growth rate - Exports (%) Imports (million of pairs) Imports (US$ billion) Export./Production (%) Growth rate - Sector (%) Number of companies Number of employees (thousands) Employees/Company

- 163 1.55

- - - -

6.8 - - -

- 171 1.62

4.5

- - -

-7 - - -

- 164 1.45

-10.5

- - -

-1.1 7562 262.1 34.7

665 189 1.55

6.9 5

0.05 28.4 -12.5 7908 272.1 34.4

755 212 1.81

16.8

9 0.07 28.1 37.7 8433 312.6 37.1

725 189 1.89

4.4 17

0.12 26.1 -3.3

- - -

Source: ABICALÇADOS - Resenha Estatística 2006

The participation of the plastic footwear and accessories market on exports for the sector has been growing gradually. In 2003, they represented 31% of the total number of pairs exported, and in 2005 this number jumped to 38%. However, when you compare billing, the percentage that plastic footwear represents falls to just 14.2% while leather articles represent 80% of all exports, and the unit value is just 30% for leather footwear.

Brazilian exports of shoes by type - 2005 Source: Abicalçados

TYPE US$

million

Billing (%)

PAIRS

millionVol. (%)

US$ ( PM )

INJECTED ASSEMBLED PLASTICS LEATHER UPPER FABRIC UPPER OTHERS

23 245

1,504 100 15

1.2 13.0 79.7 5.3 0.8

14 58

103 12 2

7.4 30.7 54.5 6.3 1.1

1.66 4.24

14.44 8.33 9.28

TOTALS 1,887 100 189 100.0 9.98


Economic instabilities and an unfavorable exchange rate have led these recovery trends to reverse, which a much steeper drop on the domestic market.

2.3.2. Breakdown by Production Process Below we present a table, according to the segmentation criteria proposed by ABIPLAST and a proposal for sub-segmentation for the sector, according to the main production processes for the year of 2005:

The main production processes in the plastics industry are based on the process of extrusion, which is responsible for 50% of the production in the sector, where 31% are flat and tubular films and another 19% for rigid and flexible tubes, plates, profiles and compounds. The values described below were obtained through statistical research expansion performed by the Magazine Revista Plástico Industrial (Oct/2004) in the plastics manufacturing sector, which involved sending questionnaires to 7,111 companies, from which responses were obtained from 927 respondents (13%).

Footwear industry Indústria de Calçados Abicalçados – Statistical Overview 2006

Growth rate - Exports Growth rate- Sector %


According to research performed, in 2004 the sector had an estimated total of 63,439 machines, distributed among 8,523 companies (7.44 machines per company). Of this total, 57.6% are injectors, 23.2% extruders and 12.3% blowers, and approximately 37% of the equipment has been in use for more than 10 years. This percentage is high, if we take other competitive markets into consideration, given the high number of technological and productivity advances for plastic processing equipment over the past ten years, mainly on fast cycle injectors for injection, for example, preforms or disposables. Other important technological advances in the machinery and equipment sector are in the reduction of the noise level and the sharp reduction in electricity, which is the main input of the plastics manufacturing industry.

The sectors that have the highest number of transformers are packaging (44%), automotive (24%) and domestic utilities (19%).

Type of machines

Num

ber o

f mac

hine

s

Figure 12 – Absolute and relative distribution of equipment available to the Brazilian plastics manufacturing industry. Data obtained from the 2004 PI Inventory (base of 63.439 machines

Casting machines 0%

Celandras (extrusion coating) 1%

Thermal shapers 4%

Roto-shapers 1%

EPS shapers 1%

Injectors 58% Blowers 12%

Balloon extruders 10%

Extruders (films and plates) 4%

Extruders (tubes and fittings) 9%

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

[ileg

ible

]

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ible

]


Figure 4 – Absolute and relative distribution of the number of transformers, according to the market segment in which they are employed. The total number of responses exceeds the questionnaires (655 in 2000, 735 in 2002 and 927 in 2004), since each transformer generally works for more than one market segment. Data obtained from 2000, 2002 and 2004 PI inventories Sector research performed by the Revista Plástico Industrial on 255 companies that extrude films, plates, tubes and profiles, performed between December of 2005 and February of 2006, shows that the segment is essentially comprised of small companies with up to 50 workers, and that these represent 62.7% of all of the companies. The sector has recently undergone profound technological advances, under which 62% of companies acquired equipment between 2004 and 2005. Just 31% of the equipment was acquired using financing. The remaining 69% were acquired using specific funds, which could signal that there are credit difficulties faced in the sector, especially by micro and small sized companies. Approximately 82% of the equipment is used to increase production capacity, and only 18% was to substitute obsolete equipment. The extrusion segment has shown itself to be one of the most up to date machinery sectors for the plastics industry, with 31% of the equipment that has been in use for more than 10 years.

The main motives for acquiring the equipment were as follows:

49% improvement to the quality of the product 31% expansion in capacity and productivity and diversification of the product line

20% reduction of production costs

The main difficulties presented were as follows

32% difficulties in post-processing, especially with printing 28% difficulties with the extrusion process 21% logistics and administrative aspects

Packaging Automotive Domestic utilities Electric-Electronic Civil Construciton Machinery and equipment Furniture Appliances Toys Agriculture Wires and cables Foot wear Others

Packaging AutomotiveDomestic utilitiesElectric-ElectronicCivil ConstrucitonMachinery and equipmentFurnitureAppliancesToysAgricultureWires and cablesFoot wearOthers

Com

pani

es

Com

pani

es


These factors demonstrate the likely need to train workers so they obtain better technical know-how. Therefore, it is evident that there is a need to provide better credit mechanisms, mainly to micro and small sized companies, to apply toward improving technology and management systems, which are fundamental to the sector, so that it can improve its productivity indicators.

Source: Industrial Plastics Magazine – April of 2006 2.3.3 Tools and Modeling The factory itself may produce molds and matrices, an activity known as tool and dye making, or they may be produced by specialized companies that belong to the metal-mechanical line. Access to competitively made molds and tools make it possible for new product projects to be manufactured quickly and with the quality demanded by the market, and it is therefore an important competitive factor in the sector. According to information provided by MaxiQuim, in 2003, there were three clusters where the majority of the approximately 2000 mold factories in Brazil were concentrated: São Paulo, Joinville and Caxias do Sul. In addition to these clusters, there is a center growing in the state of Bahia. Of the 2000 factories, approximately 1,200 are directly related to plastic manufacturing that in large part involve micro or small companies. With increased international competition in the sector, companies have to adapt to new methods for project development in order to simulate and manufacture molds more efficiently in production, and increasingly with much shorter lead times between the project and its execution. Therefore, increased computerization of the project and mold manufacturing process, combines processes of Industrial Design, Fast Prototyping to validate designs, and CAD/CAM systems for manufacturing. This technological and qualification modernization process for tools is a slow process that demands heavy investments that generally are not available to micro and small companies. Therefore, the importance of technological support to CTs involved in these regions is important, both on the supply of design, simulation and fast prototyping technological services, as well as in the training of workers.

Research on 255 extrusion sector companiesAverage age of the equipment in years

Research on 255 extrusion sector companies Number of employees by company

0 to 4 5 to 9 10 to 19 20 or more 501 or more 0 to 50 51 to 100 101 to 500


Figure 7 – Computerization of the Project and Mold Manufacturing Processes

Below we transcribe some of the conclusions of the “Prospective study on plastic injection mold manufacturing technologies” performed in 2002 by DEMa/UFSCar and EQ/UFRJ with the help of FINEP, the intent of which was to develop a technological prospecting study that focuses on technological innovations and tendencies relevant to the competitiveness of the Brazilian plastic injection molds industry. Simplified schematics for the production chain and the mold manufacturing process for plastic injection:

Indicators of competitiveness and the technology on the mold industry (Vidossich, 1997) The main recommendations for strengthening the Brazilian mold industry, in light of competitive challenges provided by existing importations and increased exporting capacities, are presented below:

Creation of a National Mold Technological Center

This is an aspect that needs to be prioritized to technologically strengthen the mold industry, given its impact on the competitive boost experienced by countries that are more advanced in this matter, with special emphasis on Germany and Portugal (CEFAMOL - Marinha Grande).

Creation of a network of technological service units

To strengthen existing technological agents located in the main Brazilian mold production centers (mainly the CTs affiliated to the PLAs of Caxias do Sul, Joinville and São Paulo), integrating them within the National Mold Technological Center, to work together locally on company needs with respect to services, training and other activities intended to improve the competitiveness of the industry;

Technological Services (CAD/CAE/CAM, final product design for the sequence, mold project, rapid and virtual

prototyping, simulation, etc.)

Sectors Metallurgy Aluminum Copper Polymers Lubricants Others

Brazilian Molds

Industry CNAE 29 69 6

Plastics Manufacturing Industry (Injection, etc.)

Sectors

Automotive

Domestic appliances

Electric-Electronic

Civil construction

Hygiene/cleaning

Footwear

Others

Machinery and components industry (machinery, mold frames,

channels, etc.)

Finishing and treatment services

(Polishing, engraving, texturizing, etc.)

Final consumer

Inputs Metallurgy

Aluminum

Copper

Polymers

Lubricants

Others

Mold Project Mold/Part design Material Selection Process Selection - CAD/CAE -Simulation -Prototyping -Modeling

Manufac- turing process Electroerosion Turning, Milling, ect -CNC, -Manual -CAM Technical handling

Finishing and handling Engraving Texturizing Polishing Surface treatment

Mold

Project

Adjustments

Tests

Prototyping

SimulationManufacture

Adjustments

CAE

CAD CAM Mold


Creation of a program or higher level specialty on mold engineering Education of workers who specialize in the mold technology area, creating specific professionals based on materials, mechanics, mechanical electronics and computer sciences. Countries that were cited by the study as examples in the educational area are: Germany, Portugal, Spain, Japan and France;

Creation of a high school or technical college course for mold projects

Investment incentives

Creation of government sponsored lines of financing, as well as the

implementation of complementary actions, focusing on the mold industry, with

the intent of encouraging modernization and technological innovation, increase

of the installed capacity, development of human resources, and promotion on

foreign markets.

Tools for packing, stamping and welding metal and glass molds are also included in the export and import statistics provided by the Sector’s Chamber for machinery and equipment for the tools and modeling industry described below. We were unable to obtain the specific data or total sales for the sector.

NCM 8207.30.00 8480 2002 2003 2004 2005

EXPORTS (US million) 32.0 50.8 62.0 106.2

IMPORTS (US million) 223.1 112.9 111.8 136.4

COM. TRADE (US million) (191.1) (62.1) (49.8) (30.2)

Source: DEEE / ABIMAQ (based on data provided by SECEX) The main export destinations were Argentina (18.2%), Spain (16.1%), China (11.5%) and Mexico (11.1%). The main countries where imports originated were Japan (18%), United States (13.8%),Germany (12.6%) and China (9.6%).


2.3.4. Machinery and Equipment for the Plastics Industry The sector is comprised of approximately 190 companies who produce locally. A good number of these companies belong to multinational groups that build factories locally to better meet the local market’s demands. This demand is estimated at between 1500 and 1600 injectors/year, 350 to 400 blowers a year and 150 to 180 flexographs a year. Despite instabilities in the economy and an unfavorable exchange rate, the sector has increased sales and productivity over the past few years, with the incorporation of new products into its portfolio.

Importations by country of origin Machinery and equipment for the plastics industry

US$ millions Country FOB 2005/2004 2005

2004 2005 % % Germany 33,7 99,1 194,1 32,6

Italy 21,5 48,9 127,1 16,1 USA 14,9 21,2 42,3 7,0

China 5,7 19,3 238,6 6,4 Switzerland 8,6 16,5 91,6 5,4

Japan 10,6 15,8 48,1 5,2 Canada 5,1 13,2 158,8 4,3 France 8,5 11,9 40,0 3,9 Austria 13 10,6 -18,5 3,5 Taiwan 6,8 9,7 42,6 3,2

Others (37) 21 37,4 78,1 12,3 Total 149,4 303,6 103,2 100,0

Source: DEEE/ABIMAQ-SINDIMAQ – April of 2006

Year US$ million FOB

Export Import

Export/Billing

%

Installed

capacity

Apparent cons.

R$ million

Plastics machinery and accessories industry

Invoicing (R$ million) Productivity(R$ thousand/employee)


The increase of apparent consumption in the sector of 41% in 2005 has demonstrated that investments are being made again in the plastics industry. Owing to the current exchange policy, importations increased 103.2% in 2005 and exports fell 6%, which constitutes a serious threat to the sector. Germany and Italy were responsible for 48.7% of all importations, and Chinese imports grew by almost 240% (basically injectors). Exports were made in large part to Mexico, Argentina and Angola, and represented 35.2% of the total. 2.3.5. Recycling Industry

The mechanical plastics recycling rate (transformation of plastic waste into pellets for manufacturing new products) in Brazil is 16.5%, only falling behind Germany (31.1%) and Austria (19.1%). This information is provided to us by Plastivida – Instituto Sócio-Ambiental dos Plásticos, after it performed a never-before national study, prepared by MaxiQuim in 2004, based on results obtained in 2003, and the methodology comes to us from the Brazilian Geographic and Statistical Institute – “IBGE”. The research shows that the plastics recycling industry in Brazil is comprised by approximately 492 recycling companies, 80% of which are concentrated in the southeastern region of the country. Sales were on the order of R$ 1.23 billion, employing 11,500 people directly. The industry has an installed capacity to recycle 1.055 million tons a year, and consumes 777,000 tons and produces 703,000 tons of recycled plastic. The southeastern region leads post-consumption plastics recycling, at 58%, followed by the southern (24.9%) and northeastern (14.5%) regions. Below the table presents the final destination of recycled products, according to the study performed by MaxiQuim:

Total Market Segments (ton) %

Domestic utilities 166,245 23.6 Civil construction 97,860 13.9

Textile 74,957 10.7 Disposable 63,084 9.0 Agriculture 55,389 7.9 Footwear 41,510 5.9

Electric-Electronic 37,224 5.3 Domestic cleaning 31,455 4.5

Industrial 30,694 4.4 Automotive 19,168 2.7 Furniture 12,649 1.8 Others 72,761 10.3

TOTAL 702,997 100.0 According to ABEPET, PET recycling in Brazil reached a level of 48% of packaging consumed in 2004, totaling 173,000 tons. Bottles are generally recovered by individual recyclers, as well as by factories and selective collection operations performed by certain municipalities.


Post consumption PET generation (in ton/year)

Source: MaxiQuim Assessoria de Mercado (2004)

YEAR RECYCLING RATE thousand/ton % 2001 8 33 2002 10 35 2003 141. 43 2004 17 48

The “IRMP” (plastics recycling industry) has been growing at a rate of 20% a year, and is mostly comprised of micro and small sized companies (23.4 employees per company) and requires appropriate investments and equipment in order to improve productivity. On the other hand, the quality and productivity for the sector also depends on the quality of the post consumption waste. Therefore, actions to improve the competitiveness of the sector should include activities surrounding selective collection programs. Recycling of empty cleaning supply receptacles has been under development through the “inpEV” (National Institute for the Processing of Empty Receptacles) since 2002. This program is responsible for collecting empty bottles and packages, recycling them and sending the waste generated in the processing to its final destination. In 2004, there were 6 recyclers who had been accredited by the institute to directly process empty packaging and to produce plastic artifacts, providing more than 2500 jobs. Approximately 18,000 tons of empty agrotoxin bottles were recycled in 2005, representing more than 65% of the packaging sold. Roughly 5% of the packaging collected cannot be recycled, and is incinerated at the appropriate units (Clariant and BASF).

Source: InpEV- Oct/2005

Last 12 months


2.4. Criteria for evaluating the different segments in the Sector Each industrial segment was individually submitted to an evaluation of some of the indicators that jointly or individually express the dynamics of the respective markets, technological innovation and the level of technological content, within the context of analyzing the potential interest in collaboration with industrial sectors and industrial support for the European Union. The level of innovation for the different segments was established through an analysis of PINTEC 2003 and articles on the subject published in the Brazilian Innovation Magazine (Revista Brasileira de Inovação).

The table below demonstrates the level of innovation and patents for the Brazilian transformation industry. Although the numbers indicate that the plastics and rubber manufacturing sector are above the international transformation industry, they are in actuality below the average.

THAT IMPLEMENTED INNOVATION Patent pend. Patent in force

ACTIVITIES IN THE TRANSFORMATION INDUSTRY

TOTAL of

companiesTOTAL %

TOTAL % TOTAL % Manufacturing Industry Food and beverage products manufacturing Creation of Clothing and Accessory articles Textile product manufacturing Prep. of Leathers, leather artifacts, travel articles and footwear Wood product manufacturing Man. of cellulose, paper and paper products (including pack.) Chemical and pharmaceutical drug manufacturing Rubber and plastic product manufacturing Machinery and equipment manufacturing Manufacture of machinery for offices and computer equipment Manufacture of machinery, electrical devices and material Manufacture of electronic material and communication equipment Man. of medical-hospital instrum., precision and optics, Auto Man. and assem. of automotive vehicles and auto parts Manufacture of furniture and miscellaneous industries RECYCLING

82374 10606 11726 3173 3843 5102 1593 3509 5049 5411 201

1705 614 845

1947 6707 312

27621 3563 3782 1111 1143 1609 490

1529 1828 2354 143 699 348 384 772

2264 43

33.5 33.6 32.3 35.0 29.7 31.5 30.8 43.6 36.2 43.5 71.1 41.0 56.7 45.4 39.7 33.8 13.8

1713 173 12 16 38 58 34

212 108 355 22 80 37 80 75

117 0

2.08 1.63 0.10 0.50 0.99 1.14 2.13 6.04 2.14 6.56

10.95 4.69 6.03 9.47 3.85 1.74 0.00

1391 116 11 40 35 15 37

167 152 254 22 42 18 97 96 85 0

1.69 1.09 0.09 1.26 0.91 0.29 2.32 4.76 3.01 4.69

10.952.46 2.93

11.484.93 1.27 0.00

Note: companies with 10 or more people working were considered. Source: analysis of Pintec 2003 data

The weight of the strategic alignment was based on the governmental priorities for the sector: PITCE, Plastics Competitiveness Forum, Renai – Plastic and on the Brazilian industrial policy.

The depth of the analysis varied from segment to segment, owing to a lack of data in many of the segments researched, and the large dispersion of companies throughout practically every sector of the manufacturing industry.

Brazilian industrial policy

Horizontal actions

Sector priorities

Software

Semiconductors

Capital assets

Drugs and medications

Areas with future potential

Biotechnology Nanotechnology Biomass


o Export Plastic Program – 2006

RENAI - National Investments Informational Network The document from the MDIC / SDP concerning the distribution of investments in the plastics industry for the 1st half of 2005 indicates that the plastics and rubber products sector played a very small role in the volume of investments, as well as in the number of projects. The table below demonstrates that the plastics transformation sector represented just 1.2% of the value invested, and 5.7% of the projects total for the transformation industry.

Sector Value (US$ millions) (%) Nº Projetos Industry – total 28800 100,00 565

Product/distribution Energy/gas/water 7900 27,43 -

Transportation/storage/communication 1015 3,52 -

Trade/services/health 857 2,98 -

Extraction industry 315 1,09 -

Civil construction 138 0,48 -

Agriculture – ranching 75 0,26 -

Manufacturing industry 18500 64,24 - Rubber and plastic articles 540 1,88 36

Rubber (Michelin – tires = MUS 2000) 202,0 37,41 4

Packaging 189,7 35,13 13

Resins 64,0 11,85 1

Electric-Electronic 38,2 7,07 2

Laminates 17,5 3,24 2

Domestic Utilities 10,4 1,93 2

Civil Construction / PVC comp. 9,4 1,74 3

Disposables 2,9 0,54 3

Recycling 1 0,19 1

Others 4,9 0,91 5

Of the US$ 540 million invested in the sector, 62.6% was earmarked for the plastic manufacturing sector, and the packaging sector has the highest amount of investments, with 35.1% of the total amount invested.

Target products (priority)


With respect to the origin of the capitalization, except for a US$ 200 million investment made by Michelin in a tire factor, 28 of the 36 projects were capitalized domestically.

2.4.1. Description of the Indicators The choice of indicators sought to determine the market dynamic for various sectors and the respective alignment with the project’s directives.

Description of the Indicators Ref. Designation Objective

I1

Level of Sales ($)

Understand the level of importance of the sector, within the contexts of the Manufacturing Industry and the Plastic manufacturing sector

I2 Annual growth rate (%)

(weight 2) Understand the dynamic nature of the segment with respect to the consumer public

I3

Level of added value ($/ton) Understand the level of involvement on the international market that the segment demonstrates

I4

Export level (%) Understand the importance/experience of the relationships established with the foreign market

I5

Innovation level (weight 2) Understand the technological development and production dynamics for the segment (PINTEC 2003

I6

Strategic alignment

Understand the importance of the segment/product in the value chain for the sector and/or in the respective cluster (PITCE/Industrial Policy)

I7 Integration with Technological

Centers Understand the level of the existing relationships withthe respective Technological Centers and MSCs.

I8

Level of MSCs Participation (%) Understand the diffusion and weight of the participation of the MSCs in the Segment.

Classification (weighted values)

Final result of the sum of the indicator values, after the application of the weight (level of importance) for each indicator.

Plastics manufacturing – 1st semester of 2005 US$ 540 million in 36 projects

Fran

ce

Bra

zil

Italy

USA

Ger

man

y

Finl

and

Can

adá

Number of projects Investments (US$)


2.4.2. Scoring Criteria The main purpose of scoring the segments in the plastics manufacturing industry sector was to identify that segments present a market dynamic that is above the average for the Sector.

Ref. Scoring criteria 1 2 3 4 5 I1 US$ billion < 1

billion 1 to 10 billion

10 to 15 billion

15 to 20 billion

above 20

billion I2 % Negative

growth Between 0%

and the GDP

GDP value up to 20% above

up to 21%

above I3 US$ / ton <2600 2601 to

4600 4601 to

6600 6601 to

8600 above 8600

I4 Exports/production (%)

Less than 6%

6 to 8% 8 to 10% 10 to 15% > 15%

I5 % innovation (Pintec 2003)

Less than 20%

21 to 30% 31 to 40% 41 to 50%

I6 PITCE Sector Chamber

LOW Average/low LOW Average/low high

I7 Level of Integration

LOW Average/low LOW Average/low high

I8 % PMEs in the sector

Less than 50%

51 to 80% 61 to 70% 71 to 80% above 81%

It is also worth noting that although these indicators are dynamic, they accurately reflect the current situation of the segments analyzed.

Many indicators were obtained through an analysis of secondary and tertiary data.

It was very hard to obtain segmented data, owing to the fact that the plastic manufacturing sector is rather spread out throughout the manufacturing industry.

Generally the indices presented provide consolidated data. This obliged up to adopt some qualitative values, based upon sector and market information, as well as upon our own research.


2.4.3. Classification of the Priority Segments After the description of the indicators and the choice of the scoring criteria, scores were assessed for the segments, pursuant to what is set forth in the table below.

Indicator: Total

Code Designation

S- PACKAGING 38 Food / beverages 37 Pharmaceutical 33

S-2

CIVIL CONSTRUCTION 23

S- DISPOSABLE 34

S- TECHNICAL COMPONENTS 41 Automotive (Auto-parts) 40 E&E 44 Medical-hospital... 39

S- AGRICULTURAL 34

S- DOMESTIC UTILITIES 28 S- SHOES 27

S- LAMINATES 28

S- TOYS 29

S-10 OTHER SEGMENTS 24 Component Extrusion and Masters 29 Biopolymers, Nanocompounds 42

ITP

PLASTICS MANUFACTURING (ton) 28

ITP

PLASTICS MANUFACTURING (US$) 36

S-11 MACHINERY AND ACCESSORIES FOR THE PLASTICS INDUSTRY

38

S-12 TOOLS AND MODELING 36 S-13 RECYCLING 26

NOTE: The scoring spreadsheet for the segment is located in Chapter 7. ANNEXES.

We think that it is necessary to maintain some sub-sectors out of this study, because they maintain technical characteristics and market dynamics that are different, as is the case of the technical components segment, which covers the automotive, electric-electronic and medical-hospital equipment sectors. 2.5. Technological Centers for the Plastics Sector The technological institutions in Brazil are rather diverse in relation to criteria such as: organizational set up, scope of activities, legal status, training and infrastructure. The country maintains rather advanced technological institutional infrastructure, such as: institutions affiliated with the Brazilian Ministry of Science and Technology (“MCT”), including institutions affiliated to the National Nuclear Energy Commission (“CNEN”); state public technological institutes; technology centers of SENAI System; business incubation institutions; institutions affiliated to the Ministry of Health and the Ministry of Defense; institutions affiliated to universities; private technological institutes and new organizational models for institutions, such as social organizations and executive agencies.


The publication “Ciência, Tecnologia e Inovação: desafio para a sociedade brasileira” (2001) – o Livro Verde da CT&I no Brasil”, makes it quite clear that “...the country maintains a rather well-defined and well-founded set of scientific and technological research institutions, which rest upon reasonably solid bases...”, although it also acknowledges that there is uneven geographic distribution of these CT&I institutions.

On this point, we should take into consideration the fact that the technological research environments in Brazil have always been linked to the government in one way or another – at different levels (federal and state) – which shape and support the national science and technology system, and most recently, technological innovation as well. It has been suggested that the definition on the types of CTs in Brazil should be classified in the following manner: they are public/private in nature, accredited by the “MCT”, that fulfill a specific mission with respect to scientific and technological research and development, in addition to maintaining the capacity to offer technological and innovative services on the development and preparation of products and/or processes, on technological education and training, as well as scientific production and the dissemination of knowledge. The Technological Centers for the Plastics Sector were listed and classified based upon a diagnosis of the difficulties and weak spots in the infrastructure in technological centers and in business associations within the plastics sector in Brazil, which is part of the Brazilian Technological Center and MSC Support Network Project, described in the following table.

Table 9 - CT scores for the plastics sector

CT CIDADE UF REGIÃO PONTIAÇÃO

COPPE/PEQ RIO DE JANEIRO RJ SE 35 INT RIO DE JANEIRO RJ SE 35 ITAL CAMPINAS SP SE 35 SOCIESC PL JOINVILLE SC SU 34 CCDM/UFSCar SÃO CARLOS SP SE 33 IPT-LAPB SÃO PAULO SP SE 33 CIMATEC SALVADOR BA NE 32 CETEBO SÃO LEOPOLDO RS SU 28 IMA/UFRJ RIO DE JANEIRO RJ SE 27 TECPAR CURITIBA PR SU 25 EQ/UFRJ RIO DE JANEIRO RJ SE 22 ULBRA CANOAS RS SU 21 SENAI SP S.B. DO CAMPO SP SE 21 FIEMTEC CUIABÁ MT CO 18

In a specific meeting, according to the minutes dated 07/10/06, ELETROS cited the CTs at UFRS – materials department, and UNICAMP – department of polymers technology, as the Institutions important to this study, since they demonstrate special interest in the sector. 2.6. Local Productive Arrangements – LPAs. The LPAs can be defined as agglomerations of companies located in the same region, which work in the same production activity, and that maintain relationships involving articulation, interaction, cooperation and apprenticeships with one another and with other local players, like the government, credit institutions, education and research, as well as business associations. Below we provide a list of the LPAs in the Plastics manufacturing sector published by the MDIC on 05/03/06.


State Name of the APL Central city Institution Instituição

POLYMERS AL MANUFACTURED PLASTICS MACEIÓ CNI

IEL MDIC

BA PLASTICS MANUFACTURING SALVADOR SISTEMA C e T MEC CNI IEL SECTI BA

GO MANUFACTURED PLASTICS GOIÂNIA MDIC MG MANUFACTURED PLASTICS BELO HORIZONTE MDIC PE MANUFACTURED PLASTICS RECIFE MDIC PR MANUFACTURED PLASTICS S CURITIBA MDIC RJ MANUFACTURED PLASTICS DUQUE DE CAXIAS SEDE RJ RJ MANUFACTURED PLASTICS RIO DE JANEIRO MDIC RS MANUFACTURED PLASTICS CAXIAS DO SUL MDIC RS MANUFACTURED PLASTICS PORTO ALEGRE MDIC SC MANUFACTURED PLASTICS CRICIÚMA MDIC SC MANUFACTURED PLASTICS JOINVILLE MDIC

SEBRAE SP MANUFACTURED PLASTICS SANTO ANDRÉ MDIC

SISTEMA C e T SEBRAE

SP MANUFACTURED PLASTICS SÃO PAULO MDIC

With the objective of creating incentives to increase the international competitiveness of Brazilian MSCs, through the promotion of larger and more dynamic technological and commercial interfaces between companies and Brazilian and European technological sectors, we recommend that at the next stage of the project, a correlation be made between the LPAs, the CTs listed, as well as the priority segments and applications, with the intent of identifying possible opportunities for establishing partnerships. Based upon this premise, a project is being developed for the LPA (Local Productive Arrangement) in the region of Santo André – SP, with the intent of promoting technical and administrative training for plastics manufacturing companies that comprise the LPA of the Greater ABC region (Tools, Auto parts and Plastics). This project will be developed under the coordination of SENAI/DN, through the Industrial Technology Unit – UNITEC, with technical coordination provided by the School Escola SENAI Mario Amato, and services will be provided through an agreement executed between SENAI/DN and the Ministry of Development, Industry and Foreign Trade – “MDIC”. Details of the project are described in annex 14 (Item 7.1) 2.7. Priority Segments for Cooperation Based upon an analysis of the spreadsheet, the priority segments for cooperation projects are:

Biopolymers and nanocomposites

o Packaging: plastic bags, disposables, film.

o Fibers for surgical sutures, parts for bone implants, capsules for the controlled release of medications.

o Plasticulture (greenhouses, mulch), agricultural (small replanting pipes).

Electric-Electronic Sector

o Applications in industrial design, prototyping in the areas of portable

electronic devices, white line.

o Special compounds: flame retardant compounds, conductive compounds, high thermal resistance, high energy saving devices, electromagnetic armoring, etc.


o Packaging with low environmental impact and structural nanocompounds.

o Smart cards and smart labels.

Automotive and auto parts segment

o Applications on industrial design, prototyping and project management.

o Structural nanocompounds.

o Quality management system and productivity increases.

Packaging and disposables

o Multilayered films to create a barrier effect. o Stand-up pouches. o “Retortables” packaging. o Packaging identifiable using RFID technology. o Packaging design presentation especially in the cosmetics and personal

care segments.

Medical-hospital and dental equipment

o Special plastics o Biocompatible polymers compatible with orthopedic, cardiac,

neurological, breast and other types of prosthetics. o Materials for medical-hospital consumption, hypodermics and others for

a single use.

Tools and Modeling

o Industrial design, fast prototyping to validate the design and CAD/CAM systems for manufacturing.

o Programs for technical training and technical improvements. o LPAs and CTs integration for the sector through the creation of a

network of technological service units, both for the supply of technological design services, simulation and fast prototyping, as well as worker training.

o Characterization tests of domestic resins, to create a database for

simulation software for injection/extrusion.

Machinery and Equipment for the Plastics Industry

o Development of automated production cells for components with


injection processes, insert placement, welding and the final inspection of the product

o Development of integrated industrial design products, productivity and

quality increases. o Program for improving energy efficiency for equipment and industrial

facilities o Programs to encourage modernization of machinery for the MSCs.

(Modermaq, for exemple).

Recycling: although it does not have a high score, the recycling is of fundamental importance in the plastics chain.

o Programs supporting technological improvements, increased

productivity and worker training for the IRMP. o Development and characterization of compounds with the incorporation

of recycled polymers o Development of applications that incorporate recycled materials, as for

example, “plastic wood” o Development of chemical and energy dispensing recycling processes of

plastic materials after consumption. Note: we think that the list of priority segments and applications presented above should not exclude possible partnership projects that are proven to present innovative aspects and that have not been considered in this study.


PART 3 – ANALYSIS OF THE EU PLASTICS SECTOR

3.1. MACROECONOMIC OVERVIEW IN THE EUROPEAN UNION The Euro’s economic community grew by approximately 1.6% within the year of 2004. With respect to performance by country, Germany and Italy were noteworthy for their slow economic growth, which did not allow the average growth of the region. On this point, the countries that are not in the Euro zone, and in particular the United Kingdom, are benefiting from a much higher growth rate.

PRINCIPAL MACROECONOMIC INDICATORS IN THE EURO AREA

(% inter-annual variation)

2001 2002 2003 2004

DEMAND AND PRODUCT

Gross domestic product 1.4 0.9 0.6 2.0

Domestic demand 0.9 0.2 0.8 0.8

Private consumption 1.8 0.1 1.0 1.3

Public consumption 2.1 2.9 1.9 1.9

Gross fixed capital composition -0.6 -2.4 -0.5 2.1

Exports 2.8 1.5 0.1 0.1

Imports 1.5 -0.1 1.8 1.8

PRICES AND COSTS

Consumption prices (annual average) 2.4 2.3 2.1 2.1

Unit work costs 2.6 2.4 2.4 2.4

Work production 0.0 0.2 0.4 0.4

LABOR MARKET

Total employment 1.4 0.5 0.1 0.1

Unemployment (%/ active population) 8.0 8.4 8.7 8.8

Source: CEP Studio (2005)


3.2. THE EUROPEAN PLASTICS MANUFACTURING INDUSTRY Study of the European plastics manufacturing market. Summary of significant points:

Total plastics consumption, including virgin polymer and recycled pellets, continued to grow, increasing by 5.6% between 2001 and 2003. The bulk of the growth took place between 2001 and 2002 (3.7%), in comparison with 1.9% growth between 2002 and 2003.

Western Europe consumption in 2003: 39,706,000 tons (Brazil 4,263,000

tons).

Per capital consumption of virgin plastics in Western Europe increased to 96.6 kilograms in 2002, increasing to 98.1 kilograms before 2003.

Mechanical recycling of plastic waste increased by 11.3% tons between 2001

and 2002, with a similar increase in 2002, maintaining the mechanical recycling rate at approximately 14% in 2003.

The energy was recovered from 4,678,000 tons of plastic waste in 2002, an

increase of 2.1% in 2001, as represented in the figure below.

23% of the recovery of the total collectable plastics waste. This increase was due to a growth in the expansion of the energy recovery capacity and new factories.

Generally, the increase in the recovery capacity meant that the amount of

plastics ending up in landfills only slightly increased between 2001 and 2003, and it is effectively separated from the rise in consumption and associated to waste generation.

Plastics raw materials only consume a small fraction (four percent) of the

world’s petroleum. There are innovations in plastic, with the latest technological applications and manufacturing solutions to minimize environmental impact. For example, we see an increasingly higher amount of plastic components in cars. The use of plastic instead of metal causes the weight of the car to decrease, thus leading to a subsequent reduction in fuel consumption, and as a result, this reduces fuel consumption as well as contamination rates. Increased consumption reflects the acknowledgement of plastic’s capacity: strength, flexibility, in addition to the acquisition capacity and durability which make it convenient for a variety of applications, ranging from packaging to construction, in addition to telecommunications and electronic equipment.


Plastic is one of the most efficient and versatile material resources we have, and as such, it plays a significant role in achieving sustainable development. The European plastics industry is committed to facilitating the efficiency of these resources, as well as to make prevention techniques available through technological developments and the understanding and implementation of various recovery and recycling options. This first section indicates to us that the European plastics sector has experienced continuous growth rates, despite some unfavorable times (2002 and 2003).

Note: Plastic’s consumption value generally refers to the plastic products market as consumed by final users in Western Europe. This includes recycled polymers but excludes applications that are not plastic. These data do not take into consideration the flows of imports/exports of either full or empty packaging.


Consumption for 15 countries and Europe and expansion.


From these tables we cite the consumption values (x1000 tons/year) for the countries expressly mentioned in the TdR:

The information about the countries noted is requested explicitlyby the TdR.


3.2.1. Classifying Europe using geographic criteria1

The European association of the manufacturers of PlasticsEurope plastics groups the European market into the following zones of interest:

Source: www.plasticseurope.org

1 Source: PlasticsEurope, Association of Plastics Manufacturers. Annual report (2005)


Detail of each zone defined: Central Region

In 2005, the Central Region began to position plastics as the “material for the 21st century”. Covering the countries of Austria, the Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia and Switzerland, the Central Region covers more than a third of the European production and demand for plastics. Communications and opinion making, along with edition management, provide the backbone for the activities in the Central Region. In Germany, plastics and the plastics industry obtained a principal position in the public’s opinion in 2005, when compared to other materials. 2005 was the year that saw the creation of PlasticsEurope Polska and PlasticsEurope Austria, and cooperation agreements were reached with the Swiss association KVS plastics and the Slovenian Plast Technics Cluster. Conferences and congresses were part of the work to position the industry as a trustworthy partner in its relationships with policy makers, governments, NGOs, universities, as well as other parties responsible for decision making in the industry. Iberian Region The Iberian Region, which covers Portugal and Spain, has four groups that work on the environment, the consumer, standardization and communications. One of the main activities in the Iberian Region is plastics used in agricultural projects. The growing use of plastics in agriculture in southern Europe creates plastic waste at the end of the life cycle that needs to be controlled. Very little of the plastic waste is collected and this leads to a considerable loss of resources. A European project including France, Italy, Spain and the United Kingdom was negotiated, to promote the administration of plastic waste in agriculture. The Iberian region is also discussing the possibility of recovering energy from plastic rich waste in Catalonia with local authorities, with technical assistance provided by Tecpol. Mediterranean Region The regional consulting committee considers developments in the plastics industry in Croatia, Cyprus, Greece, Italy, Malta and Turkey. PlasticsEurope published a position paper on Green Public Procurement (GPP) and was active in plastic cables. Another study was performed on plastics and environmental policy in Italy, and the recovery of energy was the subject of significant communication. The Mediterranean Region has also addressed the question of plastic bags and tarps. The Regional also continues to work on the plastics value sequence chain, in large part with COREPLA, a national plastic packaging recycling consortium, where communication and announcements also played a significant role in the activities of the Mediterranean region.


North Region The countries in the North Region – Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden and the United Kingdom – were fully integrated into the Pan-European network through a regional office in London in the British Plastics Federation. Cooperation agreements were signed with Denmark, Finland, Sweden and the United Kingdom. Important work was performed on plastic pipes, realized in cooperation with TEPPFA (The Plastic Pipes and Fittings Association), the Danish Federation of Plastics and DEPA, the Danish Environmental Protection Agency.

Using waste as an energy source was also promoted in the North Region, aided by the introduction of better recovery practices, including recycling. The region took part in plastics fairs in Birmingham, United Kingdom, and in Lahti, Finland. Relationships with the media began to increase the Region’s visibility. West Region The Western Region covers France and Benelux, and included a variety of communication efforts, which include domestic news bulletins, announcements, project competitions and educational games France focused on communications through various compartments and a campaign announced on the radio in the summertime, talking about reusing and recycling plastic bags. A subsequent examination indicated that the ad campaign had been very successful in promoting the message of “plastics and the environment”. The idea that plastic bags can be reused and recycled to produce energy was well transmitted by the campaign. 3.2.2. Lines of work in accordance with the association PlasticsEurope The association PlasticsEurope defined the work groups that group activities or projects that mark the tendencies or lines of interest in Europe for the plastics sector. The main work groups are listed below: Energy - saving The study of energy saving materials concluded that increased use of energy saving plastic materials would significantly aid in the management of sustainable resources in Europe. Total liquid energy – the saving of isolation plates from the plastics sold in 2004, improving energy saving standards for exterior walls in Europe, is estimated at 5,150 million GJ throughout a 50 year lifetime. If sales in 2004 of plastic energy saving devices took place over the twenty-two year period for the Kyoto accord (1990 - 2012) approximately one-third of the EU1 Kyoto target would be reached. Solid Waste Administration In order to contribute to the waste debate in Europe, the experts at PlasticsEurope focused more on the definition and development of different techniques to recover plastics at the end of their life cycle. In doing so, they focused not just on innovation in


close cooperation with partner industries, but they also seek to identify the best practices, and recommend and contribute towards the presence of sustainable waste administration systems throughout all of Europe. A special attempt to introduce the accumulated knowledge gathered over the past 15 years was made. In specific guidelines for the end of the life cycle for products, PlasticsEurope was actively involved in the consultation of the interested party with the European Commission on targets for End-of-Life-Vehicles. The guidelines from the European Commission (2000/53/OEC) for end of life vehicles sets ambitious goals for reuse, recovery, recycling and energy. According to a 2003 estimate, 12 million vehicles were junked, with a plastics return rate of approximately one million tons. This is a sufficient reason for highlighting the most eco-efficient means of recovery, and to assure a favorable legislative structure. That structure would examine the whole life cycle of the product for the client, reducing the focus on specific targets, but in order to insure a reduced impact on the environment. Exposure matrix (contact with food) The exposure matrix is a project to emphasize plastic packaging in contact with food for the consumer. PlasticsEurope has undertaken this project in conjunction with other associations, within the context of European regulations on matters related to food contact, and creating tools to analyze risk and create databases about food contact, in order to insure greater confidence on the protective benefits of using plastic as food packaging.


3.3. DETAILS ON THE SEGMENTS CONSIDERED

Table Based upon ABIPLAST (Brazil)

Ref. Sector Designation

S-1 PACKAGING S-2 CIVIL CONSTRUCTION S-3 DISPOSABLES S-4 TECHNICAL COMPONENTS S-5 AGRICULTURE S-6 DOMESTIC UTILITIES S-7 FOOTWEAR S-8 LAMINATES S-9 TOYS

S-10 OTHER SEGMENTS

Ref. Sector Designation

S-11 MACHINES & ACCESSORIES FOR THE PLASTICS INDUSTRY

S-12 TOOLS AND MODELING S-13 RECYCLING

Segments taken based upon the study in Brazil. Adaptation of the classification according to the sector criteria provided by ABIPLAST.

For the European study, product or utility categories were developed that were different than those previously defined for Brazil. The data provided for the study were taken from different company databases: Dun & Bradstreet, Kompass, SABI and Europages. The most available data only went through 2003. The classification of different companies in sectors previously defined in Brazil took place in accordance with the following conversion tables, as agreed to with the experts from the European Union and Brazil. For some graphics, some criteria for associations were considered.


Table relating European segments with Brazilian segments. It shows details of the segments for those based in Europe, with their corresponding segment defined for Brazil.

Segment-BR

Databases segments

S-1 Plastic fittings and joints S-1 Plastic tanks and storage S-1 Plastic bottles, according to the material S-1 Plastic casks, cans and boxes: packaging storage, food and transportation containers S-1 Plastic pipes and bottles for filling S-1 Plastic sacks and bags S-1 Plastic closures and lids S-1 Plastic articles for the food and beverage industry S-1 Plastic articles for the chemical, pharmaceutical and cosmetics industries S-1 Plastic articles for tents and supermarkets S-2 Semi-finished plastic products: bars, joints, profiles and pre-formed S-2 Plastic tubes, hoses, pipes and channels S-2 Plastic valves, plugs and accessories S-2 Plastic articles for construction S-2 Plastic doors and windows S-2 Plastic blinds, curtains and sheets S-2 Plastic sanitary installations S-3 Semi-finished plastic product: bars, joints, profiles and pre-shaped (part 2) S-3 Plastic articles for the bathroom S-3 Plastic baby articles S-4 Fiberglass reinforced plastic articles S-4 Plastic articles for transportation infrastructure S-4 Plastic articles for the mechanical industry S-4 Plastic articles for the electric-electronic industry S-4 Plastic articles for laboratories S-4 Plastic articles for metered devices S-4 Plastic articles for optics, photography and film S-5 Plastic articles for agriculture, cattle and animal husbandry S-6 Plastic articles for domestic use S-6 Plastic articles for kitchen and table S-6 Plastic accessories for decorating S-6 Plastic articles for the furniture industry S-8 Semi-finished plastic products: Laminates, sheets, films and belts S-8 Plastic laminated sheets

S-10 Preprocessed plastics S-10 Plastic articles for grooming S-10 Plastic merchandising accessories S-10 Miscellaneous plastic articles S-10 Plastic accessories for textile machinery S-13 Plastic recycling

Source: Kompass (2003)

Note: The economic activity code (CNAE) were not used, since the company data that only include this information in their databases have a cost, and are not included in the budget for this project.


3.4. BILLING FOR THE DIFFERENT SEGMENTS

2003 BILLING (Plastic Sector Segments, EU-15)

Segments

The sector of the companies that have proportionally higher sales in the plastics industry is the segment of “Civil construction”, at 28.5%, followed by the “Packaging” segment, with 21.8%. If we add “technical components” and “other segments” to these two, we would cover more than 80% of the market.

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3.5. NUMBER OF COMPANIES BY SEGMENT

Plastics Manufacturing Sector 2003 (EU-15)

33% S-1 Packaging 24% S-2 Civil construction 15% S-4 Technical components 12% S-10 Other segments 5% S-3 Disposables 5% S-8 Laminates 4% S-6 Domestic utilities

1% S-5 Agricultural 1% S-13 Recycling n.d S-7 Footwear n.d. S-9 Toys n.d. S-11 Machinery and accessories for

the plastics industry n.d. S-12 Tools and modeling n.d. S-13 Recycling

With respect to the number of companies on the European market (EU-15), the main segment is that of packaging, with 33% of the companies in the sector, followed by the civil construction segment (24% of companies), and technical components is in third place, with 15%. We note that recycling companies and companies that handle disposable material for products, are directly quite involved in waste management (of plastic). These segments, despite the fact that they are not quantitatively significant at the present time for the plastic manufacturing sector, they are in expansion, owing to increasing awareness of environmental protection and concepts of sustainability.

Market share - Europe -

(number of companies)


3.6. VOLUME CONSUMED BY SEGMENT (tons) The segmentation criteria used for the following graphics does not agree with what was previously used to analyze billing and the number of companies in the sector. This graphic was taken from the annual report of the PlasticsEurope association (2002-2003), and consequently makes use of the segmentation criteria employed by this organization.

Source: PlasticsEurope (2003)

3.6.1. Packaging Packaging was still the greatest plastics consumer in 2003, the equivalent of 14,764,000 tons, or 37.2% of all plastics consumed. Packaging experienced a growth of 1.3% on consumption rates between 2002 and 2003, despite economic declines. The reason for this is that plastics continue to be the material of choice for packaging, and it is always substituting other more traditional materials because it is light, flexible and easy to process. Continued technological development in the plastics industry means that currently the large family of plastics continues to do more with less, helping to save valuable resources. In fact, although more than 50% of the merchandise throughout all of Europe is packed in plastics, the weight of plastic only equals 17% of all packaging. 3.6.2. Agriculture Agricultural plastics equal 1.9%, 744,000 tons, of all the plastics consumed in Europe in 2003. Despite the fact that there was no growth in this sector between 2002 and 2003, they continue to play an important role. Agricultural irrigation and drainage systems based on plastics supply effective solutions for crop expansion. For example, in arid regions, plastic tubes and drainage systems may cut irrigation costs by one or two-thirds, and it can equally double the harvest.


3.6.3. Building and Construction (B&C) The building and construction industry (B&C) uses plastics in a wide variety of tube wrapping applications, in window frames and interior design. It is the durability of plastic, its strength, resistance to corrosion, low maintenance cost and final aesthetic result that assures its continued popularity in the sector. This is reflected in the data that demonstrate that despite an economic decline, B&C consumed 7,350,000 tons of plastic in 2003, the equivalent of 18.5% of the total plastics consumption for Western Europe, making it the third largest consumer, after packaging and domestic sectors. The relatively low growth, of two percent, in the plastic consumption between 2002 and 2003 is an indication of the negative impact that the larger economic recession has had, as well as the drop in new home starts. 3.6.4. Automotive The demands of the automotive industry are a challenge for current designers. The solution to balance high performance, competitive prices, style, comfort, safety, fuel economy and minimum environmental impact, often times can be found in a new generation of light plastics. This is reflected in the plastics volumes that are used in the automotive sector. The automotive sector challenged the stagnant economic climate and experienced relatively high growth rates between 2002 and 2003 – 5.7%. The volume of plastics consumed by the automotive sector reached 3,170,000 tons, which is to say, eight percent of total plastics applications in 2003. Plastics are at the vanguard of automotive innovation, with designs like the smart car from Daimler Benz and the development of light fuel cells are among the example of light materials that perform an essential role in the future of the automotive sector and efficient energy consumption. Actually, it is forecast that light plastics will contribute to the reduction of 10% per year on the fuel consumption for passenger cars in Europe. 3.6.5. Electrical and Electronic (E&E) Despite a global economic decline, electrical and electronic plastics consumption (E&E) increased 3.4% to 3,360,000 tons in 2003, in comparison with the 3,250,000 tons in 2002. This confirms that plastic is an essential material for the E&E sector. It is a fact that many new technological developments take advantage of cutting edge plastics – consequently, the devices are getting smaller and lighter. This means that while the amount of E&E applications continue to grow, the weight of the plastic used in each unit, as in the packaging, goes down. This is a perfect example of plastics that make more with fewer resources.


Segmentation differences existing between Brazil and Europe:

Packaging 42%

Disposables 11% Technical comp.

11%

Civil Construction 10%

Agriculture 9%

Others 7%

Domestic utilities 5% Foot wear

3% Toys 1%

Laminates 1%

Brazil (2005)

4.263 million tons Source: ABIPLAST (2005)

Western Europe (2003)

4.263 million tons Source: ABIPLAST (2005)

Agriculture 1,9% Packaging 37,2

Civil Construction 18,5

Domestic Utilities/Others 20,1

E&E; 8,5

Automotive 8

Industrial 5,8


3.7 MSC PARTICIPATION FOR EACH SEGMENT With respect to this section, it studies companies that produce plastics by the number of employees. Given that this is an important part of this study of MSCs, we think it is important to characterize the size of the company by segment. In order to facilitate the presentation of this data, the analysis tool was EXCEL for program data used in the histogram, with a graphic representation of the frequencies and accumulated frequencies by class, along with two tables that support the data origin for the graphics. The two tables that appear for the sector and for each particular segment (which is data held) represent the following:

- Table located on the left: Table of frequencies required in the form, taken from the field “Class”.

- Table located to the right: Table of frequency, with the preceding data, required from the form taken from the field “frequency”.

The table then shows the entire sector plus a key concerning how each number of the class should be interpreted (example: class 200 groups all companies that have between 51 and 200 employees). The criteria for the definition of “classes” to study. The values of the classes were grouped, defining the companies in the range of employees that allow a definition of companies that are considered MSCs and those that are not. Some values at times have apparently been defined as follows, like 200 and 250, with the objective of verifying which companies might be in this range. This fact is important, since the criteria for MSCs vary in accordance with the agency or association setting the rules (the criteria noted at the start of this study). We found that the percentage of companies that are located in the range of 200-250 is minimal: less than 1.5% of the companies. What this means that there are not many companies that can challenge this based upon the criteria adopted for the MSC, and that is completely different if that value leads to a higher value. These companies may be willing to consider MSCs, according to this criteria, and a non- MSC, in accordance with another, which in the subsequent phase of the project may imply assistance from the EU or not.


Class Frequency % accumulated Class Frequency % accumulated

10 4.743 21.91% 50 9.715 44.88% 50 9.715 66.79% 200 5.407 69.85%

200 5.407 91.76% 10 4.743 91.76% 250 278 93.05% 500 853 95.70% 500 853 96.99% above … 652 98.72%

above … 652 100.00% 250 278 100.00%

Plastics Sector Histogram

Class Employees 10 0-10 50 11-50

200 51-200 250 201-250 500 251-500

above … >500 Source: Specifically prepared based upon Kompass-2003

Freq

uenc

y

Class (according number of employees)

Frequency % accumulated


On the tables and histograms for each segment below, we can see that he participation of MSCs in Europe is quite important, representing approximately 90% of the companies in the sector.

S-1 (EU-15)

Class Frequency % accumulated Class Frequency % accumulated 10 50

200 250 500 above …

1.383 2.854 1.728

96 281 184

21,19% 64,92% 91,40% 92,87% 97,18%

100,00%

50 200 10

500 above …

250

2.854 1.728 1.383 281 184 96

43,73% 70,21% 91,40% 95,71% 98,53%

100,00%

S-2 (EU-15)


200 250 500

above …

909 2.031 1.186

64 235 187

19,71% 63,75% 89,46% 90,85% 95,95%

100,00%

50 200 10

500 above ……

250

2.031 1.186 909 235 187 64

44,04% 69,75% 89,46% 94,56% 98,61%

100,00%

S-3 (EU-15)


200 250 500

above...

212 476 281 16 42 44

19,79% 64,24% 90,48% 91,97% 95,89%

100,00%

50 200 10

acbove... 500 250

476 281 212 44 42 16

44,44% 70,68% 90,48% 94,58% 98,51%

100,00%

S-4 (EU-15)


200 250 500

above …

628 1.304 117 112 681 37

21,81% 67,11% 96,11%

100,00% 90,76% 92,05%

50 200

above … 250 10

500

1.304 681 112 37

628 117

45,29% 68,95% 90,76% 94,82% 98,71%

100,00%

Source: Specifically prepared based upon Kompass-2003


S-5 (EU-15)


200 250 500

above …

62 120 52 2 7 7

24,80% 72,80% 93,60% 94,40% 97,20%

100,00%

50 10

200 500

above … 250

120 62 52 7 7 2

48,00% 72,80% 93,60% 96,40% 99,20%

100,00%

S-6 (EU-15)


200 250 500

above...

189 364 198 12 28 20

23,30% 68,19% 92,60% 94,08% 97,53%

100,00%

50 200 10

500 above …

250

364 198 189 28 20 12

44,88% 69,30% 92,60% 96,05% 98,52%

100,00%

S-7 (EU-15)

n.d.

S-8 (EU-15)


200 250 500

above …

194 379 273 15 49 35

20,53% 60,63% 89,52% 91,11% 96,30%

100,00%

50 200 10

500 above …

250

379 273 194 49 35 15

40,11% 68,99% 89,52% 94,71% 98,41%

100,00%

S-9 (EU-15)

n.d.



S-10 (EU-15)


200 250 500

above …

559 1.054 502 31 83 59

24,43% 70,50% 92,44% 93,79% 97,42%

100,00%

50 10

200 500

above … 250

1.054 559 502 83 59 31

46,07% 70,50% 92,44% 96,07% 98,65%

100,00%

S-11 (EU-15)

n.d.

S-12 (EU-15)

n.d.

S-13 (EU-15)


200 250 500

above …

607 1.133 506

5 11 4

26,79% 76,79% 99,12% 99,34% 99,82%

100,00%

50 10

200 500 250

above …

1.133 607 506 11 5 4

50,00% 76,79% 99,12% 99,60% 99,82%

100,00%



Source: prepared based upon Kompass-2003

Histogram S-1

Frequency

% accumulated

Freq

uenc

y

Class

above

Histogram S-2

Frequency

% accumulated

Freq

uenc

y

Class

above

Histogram S-3

Frequency

% accumulated

Freq

uenc

y

Class

above


Source: prepared based upon Kompass-2003

Histogram S-4

Frequency

% accumulated

Freq

uenc

y

Class

above

Histogram S-5

Frequency

% accumulated

Freq

uenc

y

Class

above

Histogram S-6

Frequency

% accumulated

Freq

uenc

y

Class

above


Source: prepared based upon Kompass-2003Source: prepared based upon Kompass-2003

Of the graphs and data explained, one is beyond all of the segments studied for approximately 90% of the companies that have less than 20 employees Dos gráficos e dos dados expostos um está para fora aquele para todos os segmentos estudados em torno de 90% das companhias que têm menos de 20 empregados.

Histogram S-8

Frequency

% accumulated

Freq

uenc

y

Class

above

Histogram S-10

Frequency

% accumulated

Freq

uenc

y

Class

above

Histogram S-10

Frequency

% accumulated

Freq

uenc

y

Class

above


Special emphasis for the recycling sector (S-13) for 99.1% of the companies who have less than 200 employees and 76.8% thereof who have less than 50. Emfatiza especialmente o setor da reciclagem (S-13) para que 99.1% das companhias têm menos de 200 empregados e 76.8% do mesmos têm menos de 50. 3.8. GROWTH

The billing data for 2003 with the data for 2004 were compared for this indicator, for companies that made these amounts available.

There was notable growth in plastics for application in the IT electronic industry.

Additionally, we note the trend to reduce the weight of vehicles, with the intent of consuming less fuel and therefore reducing emissions. This evolution is based on a variety of things, including the incorporation of more plastic components within the vehicle. We also detect an increase in the electrical cabling used on electronic components in the vehicle. The cables, in turn, are protected by plastic materials. EVOLUTION OF THE TRANSFORMATION, FOREIGN TRADE AND DOMESTIC

SALES OF THERMOSTABLE DEVICES (Spain)

In millions of Euros. Base year = 1994

Source: CEP (2005)


3.9.- MACHINES AND EQUIPMENT List of the main machinery manufacturers for the plastic manufacturing sector that operate in Europe.

CompanySumitomo BattenfeldCincinnati

NetstalNikon Engel

ArburgSandretto

Negri BossiSource: www.eppm.com

There is a detailed example attached of a company in the machinery manufacturing sector for the ENGEL plastics manufacturing industry.


3.10. EVOLUTION OF THE MOLD SECTOR, ACCORDING TO THE TYPES OF CLIENT COMPANIES The molds sector in Portugal has approximately 300 companies that are typically sized MSCs (Small and Medium Sized Companies), located in large part in Marinha Grande and in Oliveira de Azeméis, employing roughly 7500 people. The graphics below represent the main industries served using molds manufactured in Portugal, and show the evolution of the sector over the past few years (according to Cefamol).

PRINCIPAL INDUSTRIAL CLIENTS

Source: CEFAMOL (2004)

Appliances

Automotive industry

Electrical materials

Electrical/Telecommunications

Toys

Packaging

Office material

Others

Automotive

Domestic utensils

Packaging Electrical/Computer/Telecommunications

Outdoor furnishings Agriculture/Irrigation Construction Material Electrical material Pediatrics

Appliances

Others


We can discern from these graphics that there is an important growth in molds for automotive parts, rising from 14% in 1991 to 60% in 2003. Even so, we notice a drop in domestic appliance molds, dropping from 34% to 7%.

The increasing importance acquired by packaging has to be noted. In this mold use classification, it was nonexistent in 1991, and now represents 7% in 2003.

Below we present details on the main molds market (manufactured in Portugal). 1999 2000 2001 2002 2003 2004

1st France France France France Germany France

2st United States

United States

Germany Germany France Germany

3st Germany Germany United States

Spain United States

Spain

4st Spain Spain Spain United States

Spain United Kingdom

5st United Kingdom

United Kingdom

United Kingdom

United Kingdom

United Kingdom

United States


3.11. RECYCLING This sub-segment is becoming increasingly more important. European legislation is moving in the direction of providing broader protection to sustaining the environment. There are various directives working toward that end: The European Directive of Packaging Plastics and Waste (P&PW) was revised in 2003. For the end of life cycle for a vehicle (ELV) and Waste Electrical and Electronic Equipment (WEEE), the Directives were finalized and are being written into domestic legislation and the industry has begun to concentrate on its implementation.

Fig. Solid Waste Management and Disposal Since there is a growing trend to use plastic materials, the problem arises of how to recycle it after the useful life of the products has expired.


According to the study “Solid Waste Management and Disposal” from UNLV (Darren Divine), an increase in plastic waste was detected, and this fact means that it is increasingly important to handle the disposal thereof.


Forecasts about plastic recycling volumes (estimated data for 2003).



Plastics waste recovery in 2002 – breakdown by recovery route (x 1 000 tonnes/year) 2003 data shown in italics



Applications for recycled plastics in Europe:

Source: PlasticsEurope (2003) Recycled plastics have notable application with respect to the packaging sub-segment (40%), within which the largest part, some 74%, is employed for “films & bags”.


3.12. INDUSTRIAL AND TECHNOLOGICAL PROCESSES Below we present a list of the main technologies employed in the plastic transformation production processes.

Injection molding Blown molding Extrusion – Fiber – Film – Heat shaped plates – Profile – Tube – Wires and cables – Compounds and master Calandering Compression molding Rotomolding Other processes

We would like to point out the growing importance of roto-molding technology, and it is a successful example of innovative processes used in Europe by the company Allibert.


3.13. TECHNOLOGICAL INVESTIGATION AND DEVELOPMENT IN THE EU OF TECHNOLOGICAL SUPPORT NETWORKS Technological Centers / Technological Clusters 3.13.1. EU-ROPLAS

Full Members

Research Technical Organisation (RTOs) from EU countries. (only one Centre each Country).

Source: http://www.eu-roplas.com/members.html

OFI Oesterreichisches Forschungsinstitut für Chemie & Technik (Austrian Reasearch Institute for Chemistry and Technology)

CRIF-WTCM - Centre de Recherches scientifiques et techniques del'Industrie des Fabrications métalliques. Engineering des Matériaux Polimeric

ELKEDE Technology & Design Centre S.A.

Laboratorio di Impresa INEGI - Instituto de Engenharia Mecânica e Gestao Industrial Portugal AIMPLAS - Plastic Technologic Institute

IFP Research AB - The Swedish Institute for Fibre and Polymer Research NPL - The National Physical Laboratory


3.13.2. EARTO

EUROPEAN ASSOCIATION OF RESEARCH AND TECHNOLOGY ORGANISATIONS

Austria Austrian Cooperative Research - ACR

Austrian Research Centres Seibersdorf - ARCS

JOANNEUM RESEARCH Forschungsgesellschaft mbH - JOANNEUM RESEARCH

Belgium The Association of Geological Surveys of the European Union - EuroGeoSurveys

VITO - Flemish Institute for Technological Research

Denmark Danish Technological Institute - DTI

Finland Finnish Pulp and Paper Research Institute - KCL VTT - Technical Research Centre of Finland France ADEPRINA ADERSA ADIV. Developpement ARCHIMEX ARMINES ASRC - Association des Structures de Recherche Contractuelle (French Association of Contract Research Organisations)

B+ Development

Bertin Technologies - Bertin

Bourgogne Tecnologies - Bourgogne Tech

Commissariat à l’énergie atomique - CEA CEDRAT TECHNOLOGIES S.A.

CIRTEM

CIRTES

Centrale Recherche SA - CRSA

Cybernétix

Direction des centres d expertises et d essais - DGA/DCE

EZUS Lyon 1

GRADIENT

Hydromécanique et Frottement -

HEF INSAVALOR S.A.

IREPA-LASER - IREPA-

LASER Le Moteur Moderne

- LMM


Microondes Energie Systèmes

MV2

NEXYAD - Nexyad

PRINCIPIA R&D Réseau CTI

SERA

SERAM

SESO

SINA

PTEC

SIREHNA

VIBRATEC

Germany Arbeitsgemeinschaft industrieller Forschungsvereinigungen - AIF

Center of Logistics and Expert Systems GmbH

DFKI GmbH

Deutsches Textilforschungszentrum Nord West - DTF

European Food Institutes - EFI

Fraunhofer Gesellschaft zur Förderung der Angewandten Forschung e.V. - FHG

Research Institute for Operations Management at Aachen University of Technology (RWTH) - FIR

IABG - IABG

KIST Forschungs GmbH - KIST

Papiertechnische Stiftung - PTS

Greece Ceramics and Refractories Technological Development Company - CERECO

Clothing Textile and Fiber Technological Development Company - CLOTEFI

Shoe and Leather Research Institute - Technology and Design Centre - ELKEDE

Hungary Bay Zoltan Foundation for Applied Research - Bay Zoltan

VEIKI - Institute for Electric Power Research

Ireland Hyperion Energy Systems Ltd - Hyperion

Italy Associazione Italiana per la Ricerca Industriale - AIRI

Biostrands Srl

Chemiricerche SRL

D Appolonia S.p.A. - D Appolonia S.p.A.

Ricerca Sviluppo Documentazione S.p.A. - EIDON

EniTecnologie


Technobiochip S.c.a.r.l.

Tecnoalimenti S.C.p.A.

Netherlands Delft Hydraulics - Delft Hydraulics

Energy Research Center of the Netherlands - ECN

GeoDelft - GeoDelft

Sino-Europe Technology Promotion Center - SETPC

Netherlands Organisation for Applied Scientific Research - TNO

Zeton B.V.

Norway Norwegian Geotechnical Institute - NGI

SINTEF

Poland TPC - Technology Partners Consortium

Portugal Association for the Institute of Biomedical Research on Light and Image - AIBILI

Instituto de Engenharia Mecanica e Gestao Industrial - INEGI

National Institute of Engineering and Industrial Technology - INETI

Instituto Pedro Nunes

Romania The Research-Development National Institute for Textile and Leather -

Executive Agency For Higher Education and Research Funding - Executive Agency

Spain Association of Research and Industrial Cooperation of Andalusia - AICIA Asociacion Vasca de

Centros de Investigacion Tecnologica - EITE

Federación Española de Entidades de Innovación y Tecnología - FEDIT

Fundacion Tecnalia - TECNALIA

UNITEC - Asociación Unitec

Sweden ACREO AB - ACREO ECOFIN Invest AB - ECOFIN

Swedish Defence Research Agency - FOI

The Imego Institute - IMEGO

IRECO Holding AB - IRECO

Industrial Research Institutes in Sweden - IRIS

MEFOS - The Foundation for Metallurgical Research - MEFOS

Swedish National Testing and Research Institute - SP


United Kingdom British Marine Technology Ltd - BMT

Canesis Limited - Canesis

PERA QinetiQ Ltd

Smith Institute

TWI - World Centre for Materials Joining Technology


3.13.3. Details on the centers in Germany, Spain, France and Italy

According to the TdR, we must request a more detailed study for the countries indicated. Below we present the technological centers (indicating their areas of expertise), and institutions directly providing quality and innovation support in the plastics sector.

The matrices initially proposed that would have to relate the different segments of the plastics sector to the different existing technological centers in Europe, in consideration of the expertise of each one, are not included in this study, since the information available on the European centers is generally rather generic, and we could not make a sufficiently grounded estimate, without first verifying in situ with the technological centers to insure that the examinations are correct.

Of the four countries that according to the TdR require a more detailed analysis, only in France there is information that once established could be related to the technological centers located in that country. This information was provided to us by EARTO (European Association of Research and Technology Organisations).


Germany

Arbeitsgemeinschaft industrieller Forschungsvereinigungen - AIF

Information concerning its expertise is only available in German, at the site: www.aif.de Center of Logistics and Expert Systems GmbH

Research and development planning focuses on the following key areas: material flow and logistics, quality and technology and expert environmental systems DFKI GmbH Currently there are five centers of the Competence, and this package of knowledge, skills and technologies held by DFKI is used to tackle important questions in: computational culture, e-learning, language technology, semantic photo-receptor currents as well as virtual offices of the future. Deutsches Textilforschungszentrum Nord West - DTF Areas of Expertise: Supercritical means and coatings for textiles, textile measures, products, new biotechnology, Electrochemistry within textile coatings, physical technologies. European Food Institutes - EFI The main focus is on the following topics: Professional training, courses accredited Europe-wide, food quality guarantee, pharmaceuticals and cosmetics, technical school, state approved instruction, food processing, food concepts. Fraunhofer Gesellschaft zur Förderung der Angewandten Forschung e.V. – FHG

Adaptronics, Energy, information and communication technology, materials and components, Nanotechnology, polymer surfaces, surface and Photonics technology, safety and defense, High-Performance ceramics, life sciences, Micro-electronics, numeric simulation, production, traffic and transportation. Research Institute for Operations Management at Aachen University of Technology (RWTH) –FIR Research Institute for Operations Management (Forschungsinstitut für Rationalisierung; FIR): Application operational systems, customer relations, ebusiness, systems control, product structuring, Numeration and classification, engineering maintenance services, source current management, Management knowledge. IABG - IABG Automotive, InfoCom, Transportation & environment, Aeronautics, Space.


KIST Forschungs GmbH - KIST The KIST Europe research institution was established in Saarbrucken, Germany, as an affiliate to KIST (South Korean Institute of Science and Technology) in Seoul, South Korea. Areas: Environmental Technology, Human Engineering, Medtronics, Innovative Research. Papiertechnische Stiftung - PTS

Area: Paper technology, and more information is available on the web at: http://www.ptspaper.de


Spain

CENTRE CATALA DEL PLASTIC

Colom, nº 114 08022 TERRASSA (Barcelona)

Tel. 93 783 70 22 Fax. 93 784 18 27

FUNDACIO ASCAMM

CENTRE TECNOLOGIC

Avd. Universitat Autònoma, nº 23 08290 CERDANYOLA (Barcelona)

Tel. 93 594 47 00 Fax. 93 580 11 02

FUNDACION GAIKER Parque Tecnológico Zamudio - Edif. 202

48170 ZAMUDIO (Bizkaia)

Tel. 94 452 22 36 Fax. 94 452 23 23

FUNDACION INASMET Camino de Portuetxe, nº 12 20009 SAN SEBASTIAN

Tel. 94 321 75 60 Fax. 94 331 66 22

TIIP Centro Politécnico Superior

María de Luna, nº 3 50015 ZARAGOZA

Tel. 976 76 19 70 Fax. 976 76 19 69

AIMPLAS Parque Tecnológico, s/n 46980 PATERNA (VALENCIA)

Tel. 961.36 60 40 Fax. 961.31 80 13

INSTITUTO DE CIENCIA Y

TECNOLOGIA DE LOS

POLIMEROS

Juan de la Cierva, 3 28006 MADRID

Tel. 912.26 29 00 Fax. 915.64 48 53

APPLUS+ Campus UAB Aparat de Correos, 18

08193 BELLATERRA (BCN)

Tel. 93. 567 20 00 Fax.93. 567 20 01

There are other research centers, like the CSIC (Consejo Superior de Investigaciones Científicas), but they do not focus on plastics.


France

List of centers, according to their area of expertise. On this list, there is no one entity that acts as an “expert in plastics manufacturing”, and for that purpose, according to the area of knowledge that the concrete project extends to, or the final application thereof, another type of center should be sought. For that purpose, we should point out that there is a category of centers that specialize in packaging.


Aéronautique, Espace : ARMINES, BERTIN TECHNOLOGIES, CENTRALE RECHERCHE S.A., CIRTEM, CIRTES, CYBERNETIX, GRADIENT, HEF R&D, INSAVALOR, MV2, SESO, VIBRATEC, SERAM, IREPA LASER Agroalimentaire : ARMINES, M.E.S. TECHNOLOGIES, ADEPRINA, ADIV, ARCHIMEX, B+DEVELOPMENT, BERTIN TECHNOLOGIES, CYBERNETIX, EZUS LYON 1, GRADIENT, MV2, SINAPTEC, SERAM, BOURGOGNE TECHNOLOGIES, IREPA LASER

Ameublement : CIRTES Art et Décoration : CIRTES Automobile : SERA, ARMINES, BERTIN TECHNOLOGIES, CENTRALE RECHERCHE S.A., CIRTEM, CIRTES, GRADIENT, HEF R&D, INSAVALOR, LE MOTEUR MODERNE, SINAPTEC, SIREHNA, VIBRATEC, SERAM, ADERA, IREPA LASER Bancaire : ARMINES, BERTIN TECHNOLOGIES, MV2, SERAM Biologie, biotechnologie, génétique : ARMINES, M.E.S. TECHNOLOGIES, ADEPRINA, ADIV, ARCHIMEX, BERTIN TECHNOLOGIES, CYBERNETIX, EZUS LYON 1, GRADIENT, INSAVALOR, ADERA, BOURGOGNE TECHNOLOGIES Cartes à puce, semi-conducteurs : B+DEVELOPMENT, CYBERNETIX, EZUS LYON 1, GRADIENT, INSAVALOR Céramique : M.E.S. TECHNOLOGIES, CENTRALE RECHERCHE S.A., CIRTES, HEF R&D, INSAVALOR Chimie : M.E.S. TECHNOLOGIES, ARCHIMEX, BERTIN TECHNOLOGIES, CENTRALE RECHERCHE S.A., EZUS LYON 1, GRADIENT, INSAVALOR, SINAPTEC, SERAM Cosmétique : ARCHIMEX, BERTIN TECHNOLOGIES, EZUS LYON 1, HEF R&D, MV2, SINAPTEC Défense : SERA, ARMINES, B+DEVELOPMENT, BERTIN TECHNOLOGIES, CENTRALE RECHERCHE S.A., CIRTEM, CIRTES, CYBERNETIX, EZUS LYON 1, GRADIENT, HEF R&D, INSAVALOR, LE MOTEUR MODERNE, MV2, PRINCIPIA R&D, SESO, SIREHNA, VIBRATEC Distribution, logistique, tri : ARMINES, B+DEVELOPMENT, BERTIN TECHNOLOGIES, CYBERNETIX, MV2 Electroménager : BERTIN TECHNOLOGIES, CIRTES, MV2, VIBRATEC Energie : ARMINES, BERTIN TECHNOLOGIES, CIRTEM, GRADIENT, INSAVALOR, LE MOTEUR MODERNE, MV2, VIBRATEC, SERAM, IREPA LASER Environnement : ARMINES, M.E.S. TECHNOLOGIES, ADEPRINA, ADIV, BERTIN TECHNOLOGIES, CENTRALE RECHERCHE S.A., CIRTEM, CYBERNETIX, EZUS LYON 1, GRADIENT, INSAVALOR, SINAPTEC, SIREHNA, SERAM, ADERA, IREPA

Fonderie : ARMINES Métallurgie : ARMINES, CENTRALE RECHERCHE S.A., CIRTES, GRADIENT, INSAVALOR, LE MOTEUR MODERNE, MV2, VIBRATEC, IREPA LASER Nucléaire : ARMINES, CENTRALE RECHERCHE S.A., CIRTEM, CYBERNETIX, EZUS LYON 1, INSAVALOR, LE MOTEUR MODERNE, SESO Offshore : B+DEVELOPMENT, CYBERNETIX, MV2, PRINCIPIA R&D, SIREHNA Pétrole : PRINCIPIA R&D Pharmacie : M.E.S. TECHNOLOGIES, ARCHIMEX, CYBERNETIX, EZUS LYON 1, INSAVALOR, LE MOTEUR MODERNE, MV2 Plastiques, Plasturgie : CIRTES, EZUS LYON 1, HEF R&D, LE MOTEUR MODERNE, SINAPTEC, SERAM Sidérurgie : CENTRALE RECHERCHE S.A., HEF R&D, SERAM Textile : SINAPTEC Transport : SERA, CENTRALE RECHERCHE S.A., CIRTEM, HEF R&D, LE MOTEUR MODERNE, SIREHNA, VIBRATEC, SERAM, Nutrition : ADIV Embalage : B+DEVELOPMENT

http://www.earto.org/get_url.asp?url=/home/nexus/memberlist.asp


Italy Associazione Italiana per la Ricerca Industriale - AIRI 1-AIRI Italian association for industrial research. NANOTEC IT Members:

A.P.E. Research

BREMBO

CNR - I.E.I.I.T. (Institute of Electronics, Computer and Telecommunication Engineering)

CNR - IFN (Institute for photonics and nanotechnologies)

CNR - ISMAC (Institute for the study of macromolecules)

CNR - ISMN (Institute of nanostructured materials)

CNR - ISTM (Institute of molecular science and technologies)

CNR – ITIA (Institute of Industrial Technologies and Automation)

CRF - Centro Ricerche FIAT

CSM - Centro Sviluppo Materiali

CTG – Centro Tecnico di Gruppo – ItalCementi

DE NORA Tecnologie Elettrochimiche

GRINP S.r.l.

INSTM (Italian Inter-University Consortium for Material, Sciences and Technologies)

ENEA (Italian National Agency of New Technologies, energy and the Environment)

ENITECNOLOGIE

INFN (Italian National Institute for Nuclear Physics)

ITC-IRST- Center for Scientific and Technological Research

PIRELLI LABS

SAES GETTERS

SCUOLA SUPERIORE SANT'ANNA – CRIM (Center of Research in Micro engineering)

SALIX SISTEMI INTEGRATI

SERVITEC

STMICROELECTRONICS

TEXCLUBTEC

VENETO NANOTECH


2- NAoMTEC

Small and medium-sized companies that sustain NAoMITEC services, by undertaking the most appropriate projects for micro and nano technologies involving R&D, jointly financed by the European Commission. On the one hand, thanks to NAoMITEC, large companies, research centers, universities and research consortia have the opportunity of selecting the SMEs that meet their R&D needs to move forward or enter into preparation projects. NAoMITEC is focused on five select sectors: Aerospace, Automotive, Environmental, Health, Information Technology and Communication. Countries partnered with NAoMITEC are as follows: Austria, Belgium, Finland, France, Germany, Greece, Israel, Italy, Poland, Switzerland, the Netherlands and the United Kingdom. Biostrands Srl See the page: http://com.area.trieste.it/biostrands/ D Appolonia S.p.A. - D Appolonia S.p.A.

Areas: Energy, Environment and Infrastructures, Industry and Transportation. Chemiricerche SRL No website Ricerca Sviluppo Documentazione S.p.A. – EIDON Eidon develops original ICT products and services, providing assistance and aid, helping companies who seek to overhaul or modernize their products, processes or services, using the most technologically advanced tools in information technology and communication. Areas: computer vision, Internet and advanced software solutions, system processing and engineering. Technobiochip S.c.a.r.l. Research and Development on electronics and biology. RESEARCH FOR SMEs: The constant challenges presented by the market, and technological development require companies to invest in more advanced product innovation and basic research. Technobiochip has vast experience in supplying basic research and technology, which may improve the performance and competitiveness of the SMEs and their products in the field of biology and electronics. Technobiochip belongs to the MIUR (Italian Ministry of Education, University and Research), working to perform third party research, upholding confidential research for the industry.


Tecnoalimenti S.C.p.A. As a non-profit research consortium that specializes in food research, Tecnoalimenti S.C.p.A. is comprised of 26 factories in the food sector, and one financial institution, San Paolo IMI, which acts as the trusty of ministerial funds. Its factories respond for 12% of Italian food sales. Tecnoalimenti’s activities: Based upon its research initiatives, investments in strategic research, projects, installation and organization of industrial research, research project management, technology transfers to the MSC, as well as professional training for the food industry.


3.14. SEGMENTS WITH THE GREATEST POTENTIAL AND PRIORITY SEGMENTS In order to establish which areas have the greatest potential, analyses were performed upon the information existing in Europe about the plastics sector, considering the opinions of the main business associations and technological centers directly related thereto. We should add quantitative aspects to this qualitative analysis, which did not find any important differences within the different segments (according to the division made in Brazil, according to Abiplast). The percentage of MSC was approximately the same for the different segments. There is no detailed export data for the segments defined, only consolidated information for the sector, available through Eurostat. The value added criteria is completely subjective, and we complement it with the aspect of competition from countries with cheaper labor, like China, we think that it should be substituted by an assessment of the degree of technology incorporated into the product, more than by the segment to which we say it belongs. With the aforementioned consideration, we have to emphasize the high performance priority areas to be those that include the following:

- Technical plastics (medical applications, engineering, electric-electronic, etc.) - Environmental sustainability (recycling, energy recovery, etc.) Technical plastics: Despite the fact that Abiplast has a specific technological components category, here we consider how those products have important value – added due to its development, including in this segment medical-hospital plastic, plastics for the automotive industry and plastics with engineering demands and those requiring special efforts. The automotive sector increasingly emphasizes the incorporation of plastic parts and sets, and this has had an added effect as a second high priority area to the one previously mentioned. The substitution of metallic parts existing on a vehicle using plastic parts has the effect of reducing the vehicle’s weight, which means less fuel to travel, and lower consumption implies a lower subsequent degree of contamination and greater environmental protection. Many of the plastics considered herein have a direct application in the electric-electronic sector (plastic with electric properties to face static electricity problems, semiconductors, etc.). It is possible to emphasize the important correlation between the evolution of the electric-electronic sector and the volume of plastic materials used therein. Technical plastics applied to the medical-hospital sector. There is a growing trend to use applications resulting from micro-fusion (micro-molds) in the medical-hospital sector.


Solid waste management Although part of Brazil has established a Recycling segment, we should adopt a more generic point of view, in order to establish which MSCs have the most potential, irrespective of what segment they belong to. We should consider that the entire sector that is dedicated to managing waste and maintaining the environment as high-priority, not just for social purposes, but also due to the growth that it has experienced and the attention it has commanded in the past few years. This directly overlaps with the economic sector of plastic packaging (reusable, single use, materials that act as plastic substitutes, etc.). Projects are also beginning to obtain a larger benefit from remnant or recycled plastics, or to obtain energy in fuel formulations.


3.15. EXAMPLES OF SUCCESS Allibert and its molding technology applications. See more examples in the annexes.


3.16 – SUB-SEGMENTS AND PRIORITY MARKETS

3.16.1 Trends

Recycling: - To improve recovery options at the end of a product’s life cycle. - To uncover realistic quantitative objectives to legislate on this subject. Plastics: Energy conservation is the key of this project. Plastics can reach this objective in a variety of different ways: 1. Saving energy during manufacturing. 2. Saving energy during the life cycle of a product. 3. Saving energy at the end of a product’s life cycle: reuse, recycling and recovery

of energy. Flame retardant plastics


Plastics waste management


As a possible solution for part of the problem that is generated with the increase of plastic remnants, we could also possibly consider the new technology that is being developed by the Australian OsmoTech company, which manages this waste energy. The potential fuel lost: Please see the article on the company OsmoTech in the annexes.


3.17. AREAS OF OVERLAP WITH THE ELECTRIC-ELECTRONIC SECTOR We have noted a growing trend in the use of plastics in the electric-electronic sector.


According to the annex, there is interest in developing specific packaging for the electric-electronic sector.


PART 4 –EU-BRAZIL COOPERATION An initial evaluation leads us to consider the following segments as ones that are priorities to both regions: 4.1 – TECHNICAL PLASTICS FOR THE E&E AND MEDICAL-HOSPITAL SECTORS

o Saving energy is the key to this product. Plastic can achieve this goal in a variety of different ways: ■ Saving energy during manufacturing. ■ Saving energy during the life cycle of a product. ■ Saving energy at the end of a product’s life cycle: reuse, recycling

and recovery of energy. 4.2 – WASTE MANAGEMENT TECHNOLOGIES

o Find ways to reduce waste production. o Improve the recovery options at the end of a product’s life cycle. o Find realistic quantitative objectives in order to create legislation on the subject. o Biodegradable plastics: Encourage projects using these products, focusing on the

fermentation phase of the process. Make use of the know-how and qualified equipment in place in Brazil, even if it is employed by other sectors (beer, sugarcane rum). Make use of the know-how involved in these techniques, to be employed in the plastics sector.

In the first case, Europe has Technological Centers and successful applications, as for example, the case of flexible electronic plastic for document reproduction (see examples of success). To understand the plastic technologies used in the medical-hospital sector, we are considering the possibility of participating alongside CT ASCAMM, making use of its expertise in micro-injection.

In the second case, Brazil has a CTs network, which develops biopolymers. As mentioned elsewhere, PHB Brasil is already producing P(3HB) on a pilot scale, with a project to expand to 2000 t/year in 2008. Please note that for our study, the CT selected to participate is the IPT-SP (Technological Research Institution of São Paulo). PHB Brazil is mentioned in the text on biopolymers, since it is already producing P (3HB) on a pilot scale, with a project to expand to 2,000 ton/year in 2008. See the attached document about biopolymers.


PART 5 – TRENDS AND CONCLUSIONS 5.1. TRENDS After an analysis of the various sectors in Europe and Brazil, we will summarize the trends for the sector pursuant to the following lines of investigation: - Micro-injection and micro-mold technology. - Technical plastics for the E&E and medical-hospital areas - Biopolymers and nanocompounds in various segments of the sector - Intelligent packaging. - Waste management technologies. Note: Attached article reporting seminars and trends for 2006 for the plastics industry at the Chicago NPE 2006 fair. It ratifies the information presented and that coincide with the main international trends.


5.2. CONCLUSIONS 5.2.1. PROBLEMS FACED BY THE SECTOR

Shifting to areas with cheaper labor.

Although the study includes European and Brazilian geographic zones, the global context must always be kept in mind when developing daily activities. It is against this backdrop that products with little added value and high production costs is now increasingly being manufactured in places on the planet with lower costs, like China and Eastern Europe.

Variation of raw material prices

The petroleum industry and raw material manufacturers have a decisive influence on the plastics manufacturing market. Their decisions on prices may favor or reduce sales and the evolution of this sector.

Improvements to installation and infrastructure

The more modern the machinery a country owns, the better. But a modern industrial park will not guarantee success. You must take into consideration the importance of performing appropriate equipment maintenance.

You don’t have to think about plastics for the aerospace sector, what we need is for manufacturers to better understand the existing technology in order to be able to add value to their products.

With relatively old machinery, but optimized maintenance, it is possible to be competitive on the market.

The level of training that workers have is directly related to this important element.

The MSCs should find their own market niches to increase the added value,

since the current tendency is that products with lower added value will migrate to countries with cheaper labor.

As Mr. Toni Soler of Talleres Format S.A. puts it: “injecting and manufacturing plastics is not the same thing as creating them”.

The management of MSCs demonstrates a very low level of commitment to

participating in international cooperation projects.

Among other things, this project attempts to encourage the MSCs to participate in international projects, notwithstanding that the large majority of MSCs do not actively participate in cooperation projects with other companies, unless they see cash results almost immediately.

The MSCs in the molds and tools sector suffer stiff competition from

countries that work at lower costs, as is the case with China.


5.2.2. FIELDS OF DEVELOPMENT After an analysis of the various sectors in Europe and Brazil alike, we can summarize the trends for the sector pursuant to the following areas of investigation:

- Micro-injection and micro-mold technology. - Technical plastics for the E&E and medical-hospital areas - Biopolymers and nanocompounds in various segments of the sector: packaging, agriculture, medical-hospital,... - Waste management technology. - Administration and industrial design.

Note: Attached article reporting seminars and trends for 2006 for the plastics industry at the Chicago NPE 2006 fair. It ratifies the information presented coincides with the main international trends.


PART 6 – SUPPORT MATERIAL 6.1. INFORMATION SOURCES

ABDI – Balanço PITCE – 2005 ABDI – Política Industrial, Tecnológica e de Comércio Exterior: Inovar para

competir – Alessandro G. Teixeira – 2006 ABICALÇADOS – Resenha Estatística 2006 ABIEF – Relatório anual 2005 ABIMAQ ABIMO ABIPLAST – Análise da Balança Comercial 2000 à 2005 ABIPLAST – Perfil 2004 e 2005 ABIPLAST – Série Histórica ABIQUIM – A Indústria Química Brasileira – abr/2006 ABIQUIM – Relatório Anual 2005 ABRAFLEX – Dados Setoriais 2004 ABRE – Relatórios anuais 2004 e 2005 Anais da Nanotec 2005 – nov/05 ANFAVEA APME. Association of Plastics Manufactures in Europe Austin Asis – Análise Setorial – Plásticos – 2006 Cambra de Comerç de Manresa / Copca Capacitação Tecnológica de MPEs em APLs – um Estudo no Segmento de

Materiais Plásticos – ANPEC SUL 2005 – UFSC Cefamol. Associação Nacional de Industria de Moldes (Portugal).

CEFAMOL. Industria Portuguesa Moldes 2004 CEMPRE Informa – Compromisso Empresarial para a Reciclagem (various

editions) CNI – A Indústria e a questão Tecnológica – 2002 CNI – Mapa Estratégico da Indústria – 2007 – 2015 (2005) CNI – Tendências da Indústria Mundial – Desafios para o Brasil – 2005 CNI / SEBRAE – Indicadores de Competitividade para a Ind. Brasileira – 2005 Cordis DATAMARK Consultoria Dun & Bradstreet Earto Estudo do Potencial dos Clusters ABC e Joinville – UnB / MDIC – 2002 Estudo Prospectivo da Cadeia Produtiva de Embalagens Plásticas para

Alimentos – MDIC/STI – EQ/UFRJ Eurostat Export Plastic News – 2005 e 2006 ExportPlastic – Plastshow 2006 – Formação de cultura e oportunidades de

exportação IBGE – PIA / Produto – Vol. 22 – Nº 2 – 2003 IBGE – PINTEC 2003 Sector Reports – (various) INP – Instituto Nacional do Plástico InpEV – Instituto Nacional de Processamento de Embalagens Vazias –


Relatório Anual 2004 e 2005. • Instituto do PVC

Instituto Inovação – Mapeamento dos Centros de Inovação no Brasil - 2004 Instituto PLASTIVIDA IPT / SP – PRUMO – Projeto de Unidades Móveis – Plastshow 2006 ITAL / CETEA – Embalagens Plásticas – Jul/2004 Kompass MaxiQuim Assessoria de Mercado – Diagnósticos Setoriais MDIC / SDP – Fórum de Competitividade – Cadeia Produtiva da Indústria de

Transformação Plástica – Perfil – Apr/2004 MDIC / SDP – RENAI – Projetos de Investimentos – 1º Semestre de 2005 MDIC / SDP – RENAI – Setor de Transformação Plástica MDIC / SECEX – Balança Comercial Brasileira – 2005 MDIC / SECEX – Exportação Brasileira por Porte de Empresa – Aug/2005 MPI – Modern Plastics International - Economic forecast 2006: What's in

store? – Jan/2006 MPI - Modern Plastics International (various editions) Nanocompósitos Poliméricos – novos mercados para a Indústria do Plástico –

Braskem. Observatório Econômico – Year 4 – No. 11 – Jan/Fev/Mar/2006 Omnexus.com web site Plásticos Biodegradáveis – Telmo Ojeda – Ulbra – Plastshow 2006 Plastics Europe. Association of Plastics Manufacturers. An analysis of

plastics consumption and recovery in Europe (Published Summer 2004) Projeto Rede de Centros Tecnológicos e apoio à PMEs no Brasil – Diagnóstico

das dificuldades e carências de infra-estruturas em CTs e Associações Empresariais dos Setores de Plásticos e E&E no Brasil – Dec/2005

Revista Brasileira de Inovação – Vol.3 – No. 1 – Jan/Jun/2004 Revista do BNDES – Estrutura e Competitividade da Indústria Brasileira: O

quê mudou? – Dec/2004 Revista Plástico Industrial (various editions) SEBRAE / SP – A inserção do DESIGN na sua empresa – Aug/2005 SENAI/SP – Congresso ABIPITI 2004 – A Experiência de um Centro de

Formação Profissional em Inclusão e Inovação SINDIPEÇAS – Desempenho do Setor de Autopeças - 2005 Specialchem4polymers web site Valor Econômico – Valor Setorial – Oct/2004

6.2. WEB SITES Website for SPI (SOCIETY OF THE PLASTICS INDUSTRY, INC.) www.plasticsindustry.org

Website for “Association of Plastics Manufacturers: PlasticsEurope” www.plasticseurope.org

Website for RTP Co. Engineering Plastics http://www.rtpcompany.com/info/apps/market/packaging/index.htm


Website for the European Plastic Product Manufacturer (EPPM) – source of information on materials and equipment for the plastics manufacturing industry http://www.eppm.com

Website for Association of Plastics Manufacturers in Europe (APME) http://www.apme.org

Website for the Australian company OzmoTech, technological leader in converting plastic waste into fuel http://www.ozmotech.com.au/

Website for IDES. The Plastics Web http://www.ides.com


Website for Consejo Superior de Investigaciones Científicas de España (CSIC) http://www.csic.es/

http://www.global21.com.br


6.3. OUR THANKS List of agencies and companies in alphabetical order: Abiplast Abimaq Abiquim Aimplast Allibert ASCAMM Braskem BASF Biblioteca (general de Manresa) Cambra de Comerçio de Barcelona Cambra de Comerçio de Manresa CCP CDTI Centro Español de Plásticos (CEP) Centro Tecnológico de Manresa CIDEM COPCA Earto ESADE European Comisión Export Plastic FATEC-ZL – Fundaçao Paula Souza FEAMM FINEP Fundació EMI-Manresa INWENT INP – Instituto Nacional do Plàstico IPT – Instituto de Pesquisas Tecnològicas de Sao Paulo Josep Manel Manresa MDIC PIMEC (Pequena y Mediana Empresa) Seinba SENAI-DN – Serviço Nacional de Aprendizagem Industrial SENAI Mario Amato SOLVAY Talleres Format, S.A. Universitat Autônoma de Barcelona Universitat Politécnica de Catalunya (EPSEM, Manresa) UNICAMP VIGES Consulting, S.L.


6.4 CONSULTANTS This study was prepared in June of 2006 by the following consultants, who were chosen based upon the agreement reached between the delegation from the European Commission in Brazil, under the aegis of Project EuropAid/119860/C/SV/multi “Technological Centers Network and Support to Small and Medium-Sized Companies”. Afonso Henriques Neto, chemical engineer with an MBA in Marketing, Planning and Industrial Administration, with experience in the Plastic Resins and Manufacturing Industries. He began his career in the Plastics and Additives Division at Ciba-Geigy. Later he worked for seventeen years in the plastics engineering division at Rhodia S/A, where he worked in the Laboratory, Product Development, Applications and Technical Assistance Area. He held various internships and took a variety of extension courses throughout Europe and the United States. He also worked in the product marketing area, performing various market studies in South America and Brazil. As a consultant, he specialized in Strategic Marketing and New Business Development for the Plastics Chain, performing work for companies such as BASF, LATI Thermoplastics, SCANIA Latin America, among others. As a university professor, he teaches a variety of classes in the areas of Industrial Organization, Quality and Productivity and the Science and Technology of Polymers. Antoni Viladomat Vers has an MBA in Company Management and Administration from ESADE (Escuela Superior en Administración y Dirección de Empresas), and a Masters in Administration from Universitat Politècnica de Catalunya (UPC). He also holds a Superior Engineering Degree in Organization from the Universitat de Vic (UV), as well as an Industrial Technical Engineering Degree from Universitat Politècnica de Catalunya (UPC). His professional activities through 2003 included work for a variety of different private companies in the banking, industrial, entertainment and professional training/qualification sectors, where he held management, teaching and consulting positions. His broad experience also includes work at small, medium and large sized national and multinational companies in countries such as Spain, France, England, Japan and Brazil. Currently he is a director at the company Viges Consulting SL where he is one of the founding partners, and he gives classes on matters related to business administration at different educational facilities such as the Universitat Politècnica de Catalunya (UPC), among others.


PART 7 – ANNEXES 7.1. LIST OF ANNEXES Annex 1: Examples of Success: Electronic Plastic

Annex 2: Breakthrough in biodegradable cosmetics packaging Annex 3: Rapid prototyping, the solution for those who need to make decisions quickly and efficiently. Annex 4: Article about the trends in the plastics sector, according to NPE 2006 Annex 5: Packaging for Electronics Annex 6: Article about new technology to convert plastics waste into fuel Annex 7: Technological Examples in the Plastics Transformation Sector (ENGEL) Annex 8: Technological lines of investigation for the ASCAMM Technological Center) Annex 9: Scoring spreadsheet for the different segments of the Plastics Transformation Sector: Annex 10: Structure and competition within the Brazilian Market Annex 11: CNI Special Probe – Year 3, No. 3, Nov/2005 Annex 12: Plastics Manufacturing Industry – Commercial Trade Balance Annex 13: Analysis of the Plastic Manufacturing Trade Balance (2005) Annex 14: LPA of the Santo André region - SP / Plastic – Thermoplastic Injection


Annex 1: Examples of Success: Electronic Plastic

Technology Plastic Logic is developing and exploiting world-class technology for manufacturing printed plastic electronic circuits. These circuits are constructed using solution processing and direct-write techniques and consist of transistors and other components that are produced from polymers and a variety of other materials. The technology is characterised by:

New solution-based air-stable materials. Direct-write manufacturing techniques to

achieve high resolution atterning on distorting substrates.

Low processing temperatures allowing the use of flexible and low-cost plastic substrates.

Eventual migration from sheet-based to roll-to-roll processing. Plastic Logic has unique intellectual property and know-how in combining novel materials and fabrication techniques to create manufacturable processes which are truly scalable for: - Large-area - High-volume - Low-cost


This approach enables active electronic circuits to be produced on large flexible plastic substrates with high yield. In addition, direct-write techniques provide the potential for rapid design cycles and customisation, shorter run-lengths and faster turn-around. This is achieved without the complexity and capital expense of:

- Multiple mask steps requiring precision alignment - High temperature processing - Vacuum deposition

The performance of printed plastic electronics today is broadly comparable to amorphous-Silicon with the potential to go beyond this with new innovations in device architectures, manufacturing processes and nano- materials.

Company

Plastic Logic is a leading developer of plastic

electronics technology. It develops and exploits new

manufacturing processes which combine the power

of electronics with the pervasiveness of printing. The

company's technology enables new product

Concepts in a wide range of markets

including displays and sensors.

The technology has the potential to radically change the economics of key segments of the electronics industry. It enables revolutionary new applications by printing electronics on thin and flexible plastic substrates using a process scaleable for large area, high volume and low cost. Founded in November 2000, as a spin-out from Cambridge University's Cavendish Laboratory, Plastic Logic is building on over 10 years of fundamental research by a world-class team. It is developing and exploiting a portfolio of intellectual property based on printing of active electronic circuits using advanced plastic materials.

Headquartered in state-of-the-art clean room facilities on the Cambridge Science Park, the company has received investment of over $25 million from a range of Venture Capital and other investors. The company's business model in high volume markets is to licence its device and process technology to manufacturers and thereby enable the rapid growth of the plastic electronics industry. Source: http://www.plasticlogic.com/index.php


Annex 2: Breakthrough in biodegradable cosmetics packaging (May 29, 2006) RPC Cresstale has successfully completed the first trial production of a 100% biodegradable lipstick. The development – which follows the moulding of a compact using the same polymer – represents a significant breakthrough in cosmetics packaging.

The pack was produced using PHA, a polymer produced from organic sugars and oils that breaks down in soil, composting, waste treatment processes, river water and marine environments. The only products generated during decomposition are carbon dioxide and water; since these are the materials required used to make the material, the life cycle is effectively a closed loop.

PHA, while behaving essentially like fossil fuel based polymers when moulded, has a smaller manufacturing 'window.' The resulting mouldings have, to date, proved to be far more heat stable than the more familiar biodegradable PLA polymer, proving PHA's suitability to the cosmetics packaging market. The lipstick uses the RPC patented 'Revolve' mechanism, which boasts a unique collapsible tower. This allows the lipstick, including the decorative cover and base, to be made in only four moulded parts and from one single material, instead of the conventional five components requiring a number of different materials. Work began on the lipstick following the successful moulding of a complete screw-top cosmetic powder compact. "A high degree of moulding expertise was needed to overcome the previously unknown problems presented when moulding this innovative new material," comments John Birkett, Project Manager at RPC Cresstale. "The successful application of PHA indicates that fully biodegradable cosmetics packaging can be a reality." Source: RPC Group site: www.omnexus.com


Inside view – Head officeSão Caetano do Sul, SP

Annex 3: Rapid prototyping, the solution for people who need to make decisions quickly and efficiently.

RAPID PROTOTYPING THE SOLUTION FOR PEOPLE WHO NEED TO MAKE DECISIONS QUICKLY AND

EFFICIENTLY. CONTEMP is a company headquartered in São Caetano do Sul that manufactures and sells measurement and process control instruments. Founded in 1984, the company has built its reputation on the quality of the products it develops using Brazilian technology. CONTEMP is the only company on the market that manufactures metering and process control instruments, calibrated with RBC certification, with assembly options that include either an electrical panel or remote supervision. Plastic parts and prototype production technology without the need for molds, developed exclusively in Brazil by Quickplast, was the solution found by CONTEMP, to perform studies on a new Temperature Data Acquisition device, designed by the company.

According to Dener G. Kruziski, Engineering Supervisor at CONTEMP, “the company needed a prototype for a plastic cabinet that covers the circuitry of the acquisition device”. With the objective of this prototyping stage of the project was to perform studies on the device and verify the details necessary for the production of the instrument at a national level, the pressure on the execution was the company’s greatest needs. Dener affirms that “the quickness supplied by the technology employed by Quickplast was decisive. The delivery was made over a short period of time, and there was no need to develop tools to create the mold”.

.

Source: http://www.pecasplasticas.com/cases_prototipagem_rapida.asp


Annex 4: Article about trends in the plastics sector, according to NPE 2006

The New Technologies Pavilion will be organized around innovations or technical questions that SPI considers to be of great importance for the plastics sectors over the next few years, according to Lynne Harris, vice president of science and technology at SPI. These questions cover four different themes, described by Lynne Harris below: -NANOTECHNOLOGY: Miniscule filler materials can earn a lot of money. “When you incorporate molecule sized filler materials into polymers, scientists are creating new types of nanocompounds that expand the reach that plastics have, and can be applied to a wide variety of different materials, from auto parts to packaging”, says Harris. -BIOPLASTICS: Innovative resins from abundant sources.” This expanding field has the potential to reduce the sector’s dependency on fossil fuel raw materials, and to expand its biodegradability options.” ENERGY EFFICIENCY: Obtaining profits in a time of high fuel costs.” Plastic processors and companies that supply them with molding tools and equipment began a search throughout the sector to find ways to reduce energy consumption. Some of the innovations that are reaching the market are already promising major reductions.” –RECYCLING: Discovering value in processing remnants and post-consumption waste. “Strong conservation laws and the power held by economic factors join forces to impose an even greater priority upon maximizing the useful life of polymer materials by making use of recycling.” The New Technologies Pavilion will have displays from technical companies and organizations, including companies that will be displaying throughout other areas in the fair. Each one of the four first days of the NPE 2006 will be dedicated to presentations on one of the pavilion’s four themes. “We have set aside a large prominent area in the southern room of McCormick Place for the New Technologies Pavilion, and we have reduced the fee normally charged to non-SPI member companies by 25%, per meter squared of display space within the pavilion”, says Walt Bishop, vice president in


charge of commercial fairs for SPI. Information about the displays in the New Technologies Pavilion can be obtained from Walt Bishop, who can be contacted through e-mail [email protected], or by telephone 1-202-974-5230 (USA).

### NPE 2006: The INTERNATIONAL PLASTIC PRODUCTS FAIR will be held on June 19-23, 2006, at the McCormick Place Convention Center in Chicago, and will be the largest international presentation of plastics products this year. Founded and sponsored by SPI (Society of the Plastics Industry, Inc.), this triennial fair will be the 25th NPE since 1946. More than 2000 companies are expected to provide displays and share a space more than 93,000 m2 in size, of which a full third will be from outside of the United States. More than 75,000 professionals in the sector will be in attendance. Visit the site www.npe.org to obtain more information about the fair. Founded in 1937, SPI (SOCIETY OF THE PLASTICS INDUSTRY, INC.) is a trade association that represents one of the largest industrial sectors in the United States. Members of SPI represent the entire supply chain in the plastics sector, including processing companies, machine and equipment manufacturers, as well as raw material suppliers. The American plastics industry employs 1.3 million workers and generates more than US$ 345 billion in annual sales. To obtain more information, please visit SPI’s website at www.plasticsindustry.org.


Annex 5: Packaging for Electronics Electronics Packaging Applications

ICP Storage Bins

Akro-Mils located in Akron, OH specializes in material handling and storage systems. Their totes and bins can be found worldwide, helping manufacturers sort, store, and transport parts safely and efficiently.

ICP Storage Boxes

Stat-Tech™ develops and manufactures injection molded, rigid plastic packaging to protect sensitive electronic parts.

ASC Chip Trays

A new family of Static Dissipative Compounds improves reliability and saves time in manufacturing chip trays, packaging products, and consumer goods.

Wafer Carrier

Modern automated wafer handling processes have increased the need for tighter tolerances on wafer carriers. Entegris, Inc., is the first company to make significant changes to the original linear wafer carriers developed in the early 1970's

Handheld Breath Analyzer

Drunk driving offenders in many states now have a choice: Forfeit their license or test their breath alcohol content before and while driving with the LifeSafer™ Interlock device.

Guide Rails

In the growing European electronics market, manufacturer C.E.P.I. Rack s.r.l. in Italy has pioneered a new guide rail for module racks which hold and transport electronic circuit boards.

Clean & Ship Tray

Thermoplastic compounds used in the data storage and semiconductor industries must pass stringent requirements for cleanliness.

Tape Cases

Protecting sensitive magnetic media from static electricity prompted Perm-A-Store, Inc. of Wichita, KS to develop the Conductive Turtle® cases.


Cases When one of their top distributors, Faes BV of Bladel, needed a static dissipating material for suitcase-type carriers, SPI BV of Eersel, Netherlands knew what to do.

ESD Shelf Support Pictured is a storage system for reticle boxes. Reticles are the master pattern of the circuitry that is exposed by a photolithographic process onto semiconductor chips. Precision Robots, Inc.

Conductive Transport Box

A carbon fiber reinforced ABS material compounded by RTP Company provides conductive properties needed for a new substrate carrier box.

ESD Storage Box

Classic Line, a division of Northwest Molded Products in Racine, Wis., expanded its line to include ESD protective storage/transport containers ranging in size from 1 5/8 by 2 1/8 inches to 5 by 7 inches.

PC Board Rack

K & R Associates, Inc., of Lawrenceville, N.J., produces Max-Rak, an assembly line rack for up to 25 printed circuit boards ranging from 0.031-inch to 0.125-inch thick.

http://www.rtpcompany.com/info/apps/market/packaging/index.htm


Annex 6: Article about new technology to convert plastic waste into fuel Melbourne-based group OzmoTech has had to take its ideas overseas to be recognised, writes Emma-Kate Symons

April 20, 2006 AN innovative Australian technology that converts plastic bags, ice-cream containers, milk crates and wheely bins into clean diesel fuel suitable for cars, trucks, trains and buses is seducing environmentally conscious investors and local governments across Europe. But at home OzmoTech, the Melbourne-based group that developed the ThermoFuel process, is still a relatively low-profile waste-to-energy outfit battling government indecision over excise on fuels derived from plastics, and local council preferences for traditional waste-disposal methods. The Dutch environmental technology firm EnvoSmart made headlines from Paris to Amsterdam and Berlin when it paid $190 million for the exclusive continental European rights to OzmoTech's system for turning plastic waste typically destined for landfills into standard diesel. It was the biggest joint venture between an Australian and Dutch company, marked by a special ceremony at the Australian embassy in The Hague in February. Starting this year, OzmoTech will ship 31 plants - all manufactured in Melbourne - to 14 European countries, beginning with Germany later this year. The Berlin plant will transform 42,000 tonnes of plastic waste into 38 million litres of diesel fuel annually. In 2007, plants will be established in the Netherlands, Poland and Sweden, followed by Luxembourg, Belgium, Slovakia, Norway, Denmark, Italy, Latvia, Lithuania, Estonia and the Czech Republic. Last year, OzmoTech signed an exclusive contract with Axiom, backed by the Victor Smorgon group, to begin building its plastic waste conversion plants in Australia. But the potential $90 million deal is on hold pending an Australian Taxation Office decision on excise applicable to diesel produced from plastic waste. While Australia deliberates, most of OzmoTech's business is being conducted overseas, and particularly in Europe where local authorities and investors are eager to jump on the alternative fuel bandwagon amid rising oil prices, diminishing fossil fuel resources and concerns to promote "profits as well as the planet" in the waste industry. According to the Organisation for Economic Co-operation and Development, developed nations will produce about 45 per cent more waste in 2020, compared with a quarter of a century earlier. About 350 waste-to- energy plants are operating in Europe in a market worth $500 million a year. The industry has been traditionally dominated by mass incineration facilities, but the EU is now moving towards "cleaner" fuel production. In late 2004, OzmoTech struck a $35 million agreement with British renewable energy firm Cynar to build seven plants for the United Kingdom and Ireland. The firm is also expanding into Spain; with Hungary, Turkey and eventually the US identified as the next export market targets. Speaking to The Australian from the headquarters of EnvoSmart in Roosendaal in The Netherlands, chairman John Bouterse said the technology appealed to European investors because of widespread concerns about sustainable energy sources.


"We have a lack of energy and we have a lack of fossil fuels," Bouterse says. "And we are realising now that in our waste there's more potential in converting some of those products into fuel. "Of course, there is money to be earned but most investor groups we have now are also concerned about the planet. So the profit is one factor but so is the future of the planet.

"It is also political. The more open energy market that we have in Europe makes it much easier to produce energy and to sell it. And we have increasing oil prices. The lack of energy in general means that more investors are realising that we can make big money. "If oil prices increase nearly every day, then your profits increase similarly. It makes the waste market where you can produce fuel with waste a very good market to invest in."

According to Bouterse, the waste industry used to be a very old market that held little sex appeal for investors. "It was not sexy to invest in garbage and waste, but now it is becoming a professional, innovative market and therefore also interesting for venture capitalists to invest in," he says.

"In Europe, people are realising that if you don't invest in waste, in clean water, clean air and clean soil, then your children and grandchildren won't have a life in 25 years." Technological advances helped EnvoSmart convince governments and venture capitalists that alternative fuels generated from waste were a sensible investment. Local authorities were also under pressure across the EU to reduce landfills. Under a Brussels directive, biodegradable waste going to landfill must be reduced to 35 per cent of the total within 10 years. "In the past, industrial processes for recycling plastic wastes were not profitable, because fuel was not produced in sufficient quantities," Bouterse says. "But with the Australian technology, the output is raised to 99 per cent. Each kilo of plastic gives almost one litre of diesel. Boats, trucks, buses, generators, every type of diesel motor could use the diesel produced." OzmoTech chief executive Garry Baker says the Melbourne group has orders for more than 60 plants worldwide, of which only 14 are destined for Australia. "There are different sorts of pressures applicable to the European markets," he says. "In Australia many councils and waste managing operators still operate normal landfills and don't have the imposition on them to seek alternatives." Marketing manager Marc Middleton gives the example of Mornington Council in Victoria, which put its waste management out to tender two years ago. "We approached them to say: 'You should do some of these (ThermoFuel) plants, you have got enough plastics'. It was just tailor made for it. And they said they were committed to landfill for the next nine years. "The Europeans are more aggressive in their development of alternative environmental technologies and also more aggressive in their support for the development of alternative fuels. "We're currently working through these issues with the Australian government and are hopeful of a successful outcome which will catergorise the thermofuel diesel as an alternative fuel. That outcome would give the fuel an excise rate similar to biodiesel. We are a genuine alternative and should be considered one like biodiesel."

OzmoTech purchased the intellectual property rights to the ThermoFuel technology from a Japanese inventor three years, refining and advancing the process. The company had managed to bypass concerns about recycling because it did not tap into existing plastic recycling programs, drawing only on feedstocks that were heading for landfills. OzmoTech has no competitors in the energy-to-waste industry.


"As far as energy from waste and the waste-management industry broadly is concerned that has not worried us because we're working in a very specific field," Middleton says. He says he likes to give potential clients the example of one ice-cream container stuffed with plastic wastes that could be turned into diesel fuel that would drive a car 11 kilometres. "This plastic will go to landfill but we can turn it into something genuinely beneficial. It reduces demands on fossil fuels. Its environmental benefits are broad. Some of them are only modest. Regarding air emissions, the benefits are marginal but still are genuine.

"There is a perception that alternative fuel is still backyard stuff. But I think we're right on the cusp now. There is a genuine shift in acceptance that this type of technology is operationally effective and financially viable."

Source: http://www.theaustralian.news.com.au/story/0,20867,18864063-643,00.html


Annex 7: Example of Technologies in the Plastic Manufacturing Sector (ENGEL)

ENGEL European know-how – global presence.

Over the past half century, Engel has developed into a group consisting of 8 production plants located on 3 continents, with Sales and Service representations in 90 countries.

ENGEL AUSTRIA GmbH. ENGEL AUSTRIA GmbH. ENGEL AUSTRIA GmbH. Plant Schwertberg, Austria Plant St. Valentin, Austria Plant Dietach, Austria (Robots, Automatio(Small/Medium-Sized Machines) (Large-Capacity Machines)

Engel Machinery Korea Ltd. Engel Canada Inc. Guelph, Ontario, Engel Machinery Inc. York, Pennsylvania,Pyungtaek-City, Korea Canada (Small/Medium-Sized Machines) USA (Small/Medium-Sized Machines) (Large-Capacity Machines)

Engel Strojirenska spol s.r.o Kaplice, ENGEL AUTOMATISIERUNGSTECHNIK Czech Republic (Machine Components) DEUTSCHLAND GMBH. Hagen, Germany (Automation Units)


THE COMPLETE ENGEL RANGE …

Source: http://www.engelglobal.com/at/maschinen.html

... at a single glance.


Annex 8: Technological lines of Investigation for the ASCAMM Technological Center Technological lines of investigation undertaken by the ASCAMM Technological Center

The center has a technological R&D department comprised of researchers from different fields. The technological investigatory lines are listed below:

1. Full product development Innovative product solutions using new materials, advanced manufacturing technologies, which allow entry into new markets (conceptual design, prototypes, industrialization, life cycle)

2. Manufacturing processes and production technology

- Rapid Manufacturing processes: metallic drawings without frames and presses and fast manufacturing uses sinterized laser technology.

- Plastic injection processes: multi-material, multicomponent and microinjection

- Injected casting of lightweight alloys - Development and manufacture of cutting edge molds and matrices, sensor

tools for intelligent production

3. Materials Manufacture of new materials with new properties and structures or the Optimization of existing means. - intelligent materials (plastic materials with shape memory) - substitute materials to improve product services.

4. Technologies for the information industry

- expert design and production support systems - Collaborative work environments focused on projects - Technological knowledge management

The center’s experience with R&D projects has been garnered over ten years, and during this time, it has gained valuable knowledge and results for companies in the sector. Currently, the Foundation is actively participating in more than thirty investigative projects, of which seventeen are international. The ASCAMM Foundation has an active commercial and collaborative relationship with more than 30 companies, mainly small and medium sized companies in the reference sector. It also maintains a broad and solid international collaboration network with a wide number of different industrial, technological and teaching organizations throughout Europe as well as the rest of the world. All of this put together makes ASCAMM very knowledgeable on the subject, from both a technological as well as an organizational point of view, as well as with respect to the current circumstances faced by industrial manufacturing companies. Remarks: The aspects that are most relevant to the plastics manufacturing sector and correlate sectors are highlighted in yellow.


Annex 9: Scoring spreadsheet for the different Segments of the Plastics Manufacturing Sector:

SECTOR Manuf. plastics weight 2 Indicator: I1 I1 I1 I2 I3 I4

Code Designation Billing 04/05

(US$ billion) Billing 2004 (US$ billion) Billing 2005

(US$ billion) Annual average growth rate (%) Added value

level (%) export / production (%)

S-1 EMBALAGENS 10.2 (04) / 13.0(05) 5.40 6.70 7.6% (05) US 4582 / t 24.5% (05)Food/beverage - 3.40 4.10 7.5% (01 - 05) nd 20% (04)

Pharmaceutical - 2.00 2.60 7.0% (04) nd 4.9% (04)S-2 CIVIL CONSTRUCTION 7.6%GDP INDL.(04) 1.58 1.60 (-) 15.5% (05) US 2562 / t ndS-3 DISPOSABLES nd 1.45 1.75 3.9% (05) US 8080 / t nd S-4 TECHNICAL COMPONENTS xxx 1.32 1.75 16.1% (05) US 9816 / t 5

Automotive (Auto-parts) 14.9 (04) / 16.5 (05) nd nd 10.8% (05) US 9155 / t 24%(04)/26.8%(05) E&E 27.95 (04) / 38.21 (05) nd nd 16.3% (05) US 54669 / t 21.8%(04)

Medical – hospital ... 1.85 (04) nd nd nd nd 17% (04)S-5 AGRICULTURAL 10%GDP NAC.(04) 1.05 1.44 11.8% (05) US 2606 / t nd S-6 DOMESTIC UTILITIES nd 0.66 0.8 4.4% (05) US 3503 / t nd S-7 FOOTWEAR nd 0.40 0.48 (-) 3.3% (05) US 4017 / t 27.5% (03-05) S-8 LAMINATES 0.8 (04) 0.13 0.16 6.1% (04) US 5703 / t nd S-9 TOYS nd 0.13 0.16 6% (04) nd nd

S-10 OTHER SEGMENTS nd 1.05 1.12 (-) 10% (05) US 3877 / t nd (RESINS) Extrusion of Compounds and

Masters 6.2 (05) nd nd 4% (04) nd 22.6% (05) Biopolymers, Nanocompounds 1.25 (04) nd nd nd > US 6000 / t nd

ITP MAN. PLASTICS xxx R$ 40.44 R$ 38.76 (-) 4.1% (05) ----- 6.5% (ton) ITP MAN. PLASTICS xxx 13.17 15.95 3.8% (05) US 3742 / t 6.1% (US)

S-11 MACH. & ACC. FOR THE PLASTICS INDUSTRY 0.33 0.26 0.33 23.8% (99 - 04)

9.5% (05)5 7.6% (04-05)

S-12 TOOLS AND MODELING nd nd nd 50.7%(export) 5 US$ 106.3 million (05)

S-13 RECYCLING 0.45 0.45 (R$1.23) nd 10% (04) US 480 / t 4% (03)

peso 2

Indicator: I5 I6 I7 I8 Total Code Designation Level of innovation (%) Strategic

alignment Integration with CTs

PMEs level of participation (%)

S-1 PACKAGING 36.2% 4 4 75% (05) 38 Food/beverage 33.7% 4 4 > 60% 37

Pharmaceutical 46.8% 5 4 <50% 33 S-2 CIVIL CONSTRUCTION 29.9% 3 2 >80% 23 S-3 DISPOSABLES 36.2% 2 4 >70% 34 S-4 TECHNICAL COMPONENTS 49.7% 4 3 55% 41

Automotive (Auto-parts) 46.2% 3 3 54,8% (04) 40 E&E 56.4% 4 4 >50% 44

Medical – hospital ... 59.1% 5 2 79% (04) 39 S-5 AGRICULTURAL <30% 4 3 >80% 34 S-6 DOMESTIC UTILITIES <30% 2 2 >70% 28 S-7 FOOTWEAR 29.8% 3 4 88% (04) 27 S-8 LAMINATES 36.2% 2 2 75% (05) 28 S-9 TOYS 36.2% 2 2 >80% 29

S-10 OTHER SEGMENTS 36.2% 3 3 >50% 24 (RESINS) Extrusion of Compounds and

Masters 42.1% 2 3 <50% (04) 29 Biopolymers, Nanocompounds >70% 5 5 >70% (04) 42

ITP MAN. PLASTICS 36.2% 4 3 94% (05) 28 ITP MAN. PLASTICS 36.2% 4 3 94% (05) 36

S-11 MACH. & ACC. FOR THE PLASTICS INDUSTRY 44.4% 4 3 >70% (05) 38

S-12 TOOLS AND MODELING 43.5% 4 2 90% (05) 36

S-13 RECYCLING 13.7% 5 1 97% (03) 26

NOTES: 1. Average annual growth, considering an exchange variation of (-) 17% in 2005. 2. Packaging and laminates: ABRE and ABIEF 3. Automotive and auto parts sector: ANFAVEA and SINDIPEÇAS 4. Machinery and accessories for the plastics and tools and modeling industry: ABIMAQ, Revista Plástico Industrial 5. Level of innovation: Analysis of Pintec 2003 and Revista Brasileira de Inovação 6. Footwear sector: values based on the variation of the number of pairs and exports of plastic footwear (Source: Abicalçados summary for 2006) 7. Recycling sector: CEMPRE, ABEPET , PLAST IVIDA, MaxiQuim (2004), ABREMPLAST 8. Engineering Plastics and Compound Extrusion based on information from the Resins Sector 9. Resins, Compounds and Masters based on data from ABIQUIM and APEX 10. Level of Added Value: Analysis of Pintec 2003, MDIC (Exportations by Technological Intensity) and v alue of exports in US/ton (Perfil 2005 ABIPLAST ) 11. Billing: weight between total billing for the sector and billing on the IT P. 12. Strategic alignment: analysis of the relevance of the sectors based upon the PIT CE, Competitiveness Forum


Annex 10: Structure and competition within the Brazilian Industry BNDES Magazine– Dec/04

Table 5 Export coefficient (Exports/Production) 1996/2004 Industrial divisions 1996 1997 1998 1999 2000 2001 2003 2004ª

General industry 17,3 14,7 15,1 16,3 16,5 17,6 22,3 22,3 Extraction industry 66,1 63,4 55,9 60,3 66,9 71,2 83,7 89,8 Transformation industry 17,0 13,8 14,3 15,4 15,5 16,3 20,7 20,5

Food and beverages 23,5 16,3 15,2 14,7 19,3 20,6 27,3 27,5 Smoking 58,6 39,1 9,7 8,7 9,4 17,5 23,1 19,6 Textiles 14,0 9,3 8,5 9,4 11,1 11,0 17,2 15,0 Clothing and accessories 5,7 3,1 3,0 4,7 5,6 4,5 7,5 7,2 Leather foot wear and articles 49,4 31,1 32,0 36,1 38,3 37,5 45,6 48,4 Wood 38,1 33,1 41,1 45,3 48,6 56,8 64,9 70,4 Paper and cellulose 16,8 17,3 24,0 22,2 15,6 18,0 25,8 21,4 Petroleum and alcohol refining 4,9 3,5 5,9 6,8 7,2 7,6 10,3 8,8 Chemical products 9,3 8,3 8,3 9,0 8,4 9,2 12,5 11,9 Rubber and plastic 8,3 6,8 5,4 7,3 8,4 8,7 11,9 11,1 Non-metallic minerals 8,4 7,7 7,4 8,6 9,0 10,4 14,5 15,1 Basic metallurgy 47,9 28,3 33,1 31,1 23,4 29,8 34,8 31,8 Metal products – exclusive Machinery and equipment 7,1 6,2 5,1 5,8 6,4 5,5 7,9 7,7 Machinery and equipment 25,1 20,6 20,1 19,5 19,5 20,7 28,9 27,9 Electrical machinery, devices and materials 12,5 9,7 9,0 10,3 10,3 11,1 13,9 14,7 Electronic communications material

10,7 6,8 11,0 16,4 18,1 15,8 15,0 16,5

Automotive vehicles Other transportation

22,9 22,7 20,4 20,6 20,7 22,2 29,5 27,1

equipment 11,4 31,7 57,0 74,3 51,7 34,3 25,3 35,0 Furnishings 12,1 8,9 9,6 11,6 13,0 14,1 18,1 18,9

Source: Specifically prepared based on the BNDES database 2004 data based on the 12 month period of June, 2003 to June, 2004

Table 2 Added value of the Brazilian Industry: Relative participation of each segment in the Industry Total 1996 and 2002 (in %) Divisions within the industry Value of industrial

transformation (%) 1996 2002

General industry 100,0 100,00 Extraction industry 2,20 3, 01 Transformation industry 97,80 96,99

Food and beverages 17,80 16,77 Smoking 1,21 0,93 Textiles 3,18 2,30 Clothing and accessories 1,81 0,98 Leather foot wear and articles 2,15 2,04 Wood 0,84 1,15 Cellulose, paper and paper products 3,79 4,84 Publishing, printing and reproduction of recordings

4,77 2,97

Non-metallic minerals 7,62 13,95 Chemical products 13,04 11,24 Rubber and plastic 3,91 2,63 Non-metallic minerals 3,31 3,71 Basic metallurgy 5,42 7,26 Machines for the office and information technology equipment

5,26 2,86

Machinery and equipment 6,81 5,61 0,44 0,83 Machinery and equipment 2,54 2,27 Machines for the office and information technology equipment

Electrical machinery, devices and materials 3,79 2,93 Electronic materials, devices and equipment for communication

Medical Hospital, Optical instrumentation and others

0,83 0,73

Automotive vehicles 8,63 7,26 Other transportation equipment 0,74 2,22 Furnishings 2,04 1,65 Various 0,04 0,06


Annex 11: CNI Special Opinion Poll – Year 3, No. 3, Nov/2005 Investments in the Brazilian Industry

Realization of planned investments for the 1st semester of 2005

Investments planned for the 1st semester of 2005 were:

Realized Partially realized

Postponed until the 2nd semester

Postponed to 2006 cancelled

% % % % %

Size Small and medium 23,9 33,3 9,5 11,3 18,7

Large 43,4 37,9 8,4 3,9 6,4

Industrial types Non-metallic minerals 23,9 36,6 14,2 4,5 20,9

Metallurgy 43,0 32,2 7,4 6,7 10,7

Mechanical 24,7 37,1 6,7 7,9 23,6

Electrical material 34,3 40,0 8,6 11,4 5,7

Transportation material 36,1 31,2 16,4 4,9 11,5

Wood 15,1 35,9 9,4 5,7 34,0

Furnishings 17,0 22,0 10,2 18,7 32,2

Paper and cardboard 23,8 33,3 2,4 19,1 21,4

Rubber 27,6 41,4 10,3 13,8 6,9

Leathers and skins 11,1 48,2 11,1 14,8 14,8

Chemicals 47,6 33,3 2,9 6,7 9,5

Pharmaceutical products 31,4 54,3 5,7 5,7 2,9

Plastics 35,0 23,3 13,3 10,0 18,3

Textiles 28,0 20,0 14,7 17,3 20,0

Clothing and foot wear 12,8 37,3 9,8 12,8 27,5

Food products 32,6 33,3 9,6 13,3 11,1

Beverages 37,5 34,4 12,5 9,4 6,3

Others 27,4 35,0 7,0 12,1 18,5

Use rate for production capacity and expectation for the purchase of machinery and equipment

Full use of capacity

Purchase of machinery and

equipment

2004 2005 2004 2005

Size

Small and medium 47,0 49,5 56,3 50,0

Large 47,3 51,0 57,2 48,9

Industrial types

Non-metallic minerals 46,7 45,6 54,7 47,6

Metallurgy 45,3 52,6 59,5 48,8

Mechanical 46,1 51,1 56,8 52,0

Electrical material 48,2 49,3 55,4 52,5

Transportation material 43,2 47,1 58,5 49,6

Wood 48,7 47,7 49,4 33,8

Furnishings 46,4 52,2 53,1 47,8

Paper and cardboard 46,2 49,4 56,3 55,4

Rubber 48,7 54,2 54,4 47,5

Leathers and skins 40,6 50,0 55,2 43,5

Chemicals 46,9 50,0 60,9 53,3

Pharmaceutical products

42,3 45,0 67,4 66,4

Plastics 50,4 50,4 55,6 54,5

Textiles 46,3 47,3 59,1 49,0

Clothing and foot wear 46,4 48,3 55,0 46,0

Food products 48,3 51,1 56,5 50,2

Beverages 50,0 49,2 58,0 48,4

(a) Adequacy ratio between production capacity and expected demand

(b) Expectancy ratio between the purchase of machines and equipment for the next year.

The ratios vary from 0 to 100 points. Ratios above 50 points indicate more than adequate

capacity or expectation of increased purchases

(c) Source: Sondagem Especial [Special Survey] Year 2, no. 03, October 2004.

* Cancelled or postponed for indeterminated period

Main planned investment objectives for the following year

Small and medium in October of

Large in October of

2004* 2005 2004* 2005

Increase production 56,7 44,0 61,8 49,2

Improve the quality products 41,1 44,3 46,2 46,1

Launch a new product 28,0 30,2 20,4 22,3

Increase efficient use of inputs 15,6 19,6 26,9 27,5

Reduce labor costs 24,5 25,2 13,4 17,6

Reduces other costs 15,6 18,6 15,1 24,4

Others 1,8 3,5 4,3 5,7

Factors that could impede planned investments from being made for 2006

Uncertainty concerning thedevelopment of demand

Shortage of own financial funds

Insecurities regarding the tax system

Financing costs

Third party financial funding notavailable

Deficient infrastructure

Environmental regulations

Shortage of qualified workers

Others

Large

Small and medium


Annex 12: Plastics Manufacturing Industry – Commercial Trade Balance

Manufactured Plastics Commercial trade balance

Thou

sand

s of

tons

Chapter 39 Others (except 39) Total Chapter 39 Others (except 39) Total

Manufactured Plastics Commercial trade balance

US

$ m

illion

s


Annex 13: Analysis of the Plastics Manufacturing Trade Balance (2005)

Components for the automotive industry CDs and magnetic cards

Shoes and soles Pneumatic screens Others

Manufactured plastic products NOT classified in position 39

NON-PLASTIC PRODUCTS UNDER CHAPTER 39TRADITIONAL PLASTICS EXPORTS UNDER CHAPTER 39OTHER PRODUCTION IN CHAPTER 39

Products manufactured in Chapter 39

GENERAL MANUFACTURED PLASTICS TOTALSMANUFACTURED PLASTICS NOT CLASSIFIED UNDER POSITION 39

Total das Exportações US$ 974.36 million FOB

(2005 – January through December)

Analysis of the commercial trade balance for the total of manufactured plastic products


Analysis of Exports – January through December, 2005

% s/ General Total Weight (ton) US$ FOB US$ FOB/tonPeso US$ FOB

GENERAL MANUFACTURED PLASTICS TOTAL 275,074,41 974.357.317,00 3,542.16 100.00 100.00

PRODUCTS MANUFACTURED UNDER CHAPTER 39 221,327.79 613.928.381.00 2,773.84 80.46 63.01 3915 – Waste, residue and remnants 7,444.89 3,570,522.00 479.59 2.71 0.37 3916 - Monofilaments (monothreads), chambers, rods and profiles 1,876.12 6,452,868.00 3,439.48 0.68 0.66 3917 – Tubes and accessories 13,963.94 65,394,174.00 4,683.08 5.08 6.71 3918 – Coating for flooring, walls or ceilings 1,618.42 1,825,381.00 1,127.88 0.59 0.19 3919 – Plates, sheets, strips, tapes, films or other flat shapes, self-adhesive 8,385.93 46,686,889.00 5,567.29 3.05 4.79 3920 – Other plates, sheets, films, strips and blades, of non-cell plastics 101,501.69 206,241,198.0

02,031.90 36.90 21.17

3921 – Other plates, sheets, films, strips and blades 33,219.71 87,566,084.00 2,635.97 12.08 8.99 3922 – Baths, sinks, toilets, bidets, articles for sanitary or hygiene uses 1,043.18 3,746,914.00 3,591.81 0.38 0.38 3923 – Articles for transporting or packaging, corks, lids and devices used to l

35,344.09 100,905,451.00

2,854.95 12.85 10.36 3924 – Table services and other domestic, hygiene or cosmetic use 6,119.52 21,438,974.00 3,503.38 2.22 2.20 3925 – Construction equipment devices 2,117.72 6,672,914.00 3,151.00 0.77 0.68 3926 – Other works 8,692.60 63,427,012.00 7,296.66 3.16 6.51

NON-PLASTIC PRODUCTS UNDER CHAPTER 39 16,194.12 46,270,421.0 2,857.24 5.89 4.75 Cellulose filler 2,069.59 16,629,777.00 8,035.30 0.75 1.71 Cellulose and cellulose acetate plates 48.5 293,461.00 6,050.74 0.02 0.03 Polymethyl methacrylate plates (acrylic) 3,707.01 8,839,890.00 2,384.64 1.35 0.91 Plates of melamine formaldehyde (formica) 10,369.02 20,507,293.00 1,977.75 3.77 2.10

TRADITIONAL PLASTIC EXPORTS UNDER CHAPTER 39 89,533.36 229,503,320.0 2,563.33 32.55 23.55 BOPP film 46,735.07 81,809,745.00 1,750.50 16.99 8.40 Self adhesive film 8,385.93 46,686,889.00 5,567.29 3.05 4.79 PET films 11,852.48 26,923,765.00 2,271.57 4.31 2.76 Corks and lids 5,158.52 21,657,331.00 4,198.36 1.88 2.22 Domestic products 6,119.52 21,438,974.00 3,503.38 2.22 2.20 PVC laminates 9,425.71 18,243,370.00 1,935.49 3.43 1.87 Polyvinyl butyral 1,856.13 12,743,246.00 6,865.49 0.67 1.31

MANUFACTURED PLASTICS NOT CLASSIFIED UNDER POSITION 39

53,746.62 360,428,936.00 6,706.08 19.54 36.99 Shoes and soles 12,146.08 159,183,635.00 13,105.76 4.42 16.34 Components for the automotive industry 5,112.47 46,784,233.00 9,151.00 1.86 4.80 Pneumatic screens 11,572.39 36,528,009.00 3,156.48 4.21 3.75 CDs and magnetic cards 335.23 19,224,824.00 57,348.16 0.12 1.97 Syringes 918.13 5,350,875.00 5,828.01 0.33 0.55 Thermal bottles 1935.42 6,469,767.00 3,342.82 0.70 0.66 Toothbrushes 550.46 6,849,209.00 12,442.70 0.20 0.70 Lighters 600.71 5,744,928.00 9,563.56 0.22 0.59 Others 20,575.73 74,293,456.00 3,610.73 7.48 7.62


Annex 14: LPA for the Santo André region – SP / Plastic – Thermoplastic Injection

PRESENTATION OF THE PROJECT This project will be developed under the coordination of SENAI/DN, through the Industrial Technology Unit – UNITEC, with technical coordination provided by the School Escola SENAI Mario Amato, and services will be provided through an agreement executed between SENAI/DN and the Ministry ofDevelopment, Industry and Foreign Trade – “MDIC”. OBJECTIVE The objective of the project is to undertake activities that increase the competitive capacity, innovation and quality of the production sector, stimulating development of skills within the LPA, increasing competitive differentials, and consequently leading to qualitative improvements on the activities performed by the companies, with the goal of creating jobs, increasing occupation rates and earnings. This objective will be reached through an industrial diagnostic, technical training and technical assistance. The target public for these activities are micro, small and medium-sized companies, which comprise the Local Production Arrangement of the Santo André region - SP, with a total of up to 15 companies. People participating in the training activities will be the managers and workers directly involved in coordination activities and the execution of production activities in the area of thermoplastic injection. The number of spaces is limited to two participants per company for each course offered. Assistance work will be provided according to the pre-established schedule, as needed by the company to be served. The project may last for up to ten months, with respect to technical training and assistance. The goals to be reached by participating companies should be reflected in the productivity, quality, competitiveness and information technology indicators for the sector. PHASE 1 AWARENESS RAISING WORKSHOP

OBJECTIVE The main objective of the Workshop is to raise awareness among people at micro, small and medium sized companies in the plastics sector (Thermoplastic Injection), demonstrating the importance of the project’s action, with an eye toward innovation, quality and compliance that products have with technical norms, which are fundamental values for improving competitiveness and winning in new markets. The proposal is to promote the project, presenting the content, methodology, benefits and advances through participation in the project. This initiative will provide margins to companies so that hey may develop and produce their products based upon current market norms, adding value, increasing quality, productivity, as well as improving the possibility of earning a greater share of the domestic market, through the introduction of innovative and well established technologies and administrative practices.


The event hopes to reach up to 60 participants. METHODOLOGY Explanation with the aid of multimedia materials. - Raw materials – characteristics and properties - Influences that the raw materials have on the injection process - The technical relationships between: Product geometry X Tools - Technical factors of the injection processes - The technology applied to production - Presentation of the LPA project Duration: 04 hours. PHASE 2 VALIDATION AND APPLICATION OF THE DIAGNOSTIC QUESTIONNAIRE OBJECTIVE To collect general and specific information from fifteen LPA participant companies, which will aid in the preparation of the “PAI” (Immediate Plan of Action), as well as during the other phases of the project. METHODOLOGY Technicians from the SENAI “Mario Amato” School will schedule visits at each LPA participating company. During these visits, diagnostics will be performed, through the application of questionnaires, principally to verify the following information: - Environmental conditions; - Technology used; - Products manufactured by the company; - Raw materials; - Production bottlenecks; - Efficiency levels; - Product and Tool project; - Management Tools (Process, Quality); - Information technology (computers, software);


- Professional training and qualification of collaborators. DURATION: The initial diagnostic visits should not exceed the limit of four hours for each company. At least two daily visits should be held, one in the morning and the other in the afternoon. Total of 60 hours. TABULATION OF THE DATA COLLECTED

- The strategies used to survey the information cited will be as follows: - Validation of the questionnaire through an interview with three LPA companies; - Completion of the questionnaire during the interview by the other companies

participating in the LPA; - Compilation of the data collected; - Preparation of correlation tables. Processes X Companies / Companies X Raw

materials; - Calculation of the activities X products areas; - Presentation and selection of Performance Indicators; - Survey and analysis of company documentation (lay out, production schedules,

procedural forms...); - Photographs; - Product analyses; - Process analyses – production flow. Duration 24 hours Preparation of an Immediate Plan of Action– PAI OBJECTIVE To train companies to use the project as a tool for adding value to the product, as well as the “Element” that propels the competitiveness of domestic products. METHODOLOGY The “PAI” – Portuguese acronym for an Immediate Plan of Action, will be implemented through individual training and assistance provided to fifteen companies, using the data collected in the diagnostic as the starting point. These training sessions seek to provide theoretical training and more evenly distributed knowledge throughout the group. Therein, the individual assistance plans have the objective of providing the practical application of the knowledge acquired in the company’s routine.


CONTENT - Training;

- Individual Assistance;

- Schedule;

- Costs. Duration: 40 hours PHASE 3 Execution of an Immediate Plan of Action – “PAI” TRAININGS – THEORETICAL AND PRACTICAL TRAINING THEORETICAL TRAINING 1 – TRAINING: Raw material / Product / Tools Project Objective To supply participants with information that allow them to develop injected product, based upon theoretical and practical technological characteristics. METHODOLOGY Explanatory and practical classes Content - main polymers on the market – characteristics and properties; - Influences that raw materials have on the injection process; - Product - Form of the injected product Geometric details, color, texture; Functionality - Relationship between the shape of the product and the tools project; - Concept and foundation of the injection analysis - Moldflow; - Product conception and materialization technology – Reverse Engineering / Rapid Prototyping. Duration: 40 hours

ASSISTANCE

OBJECTIVE

To promote improvements to a product using the methodology applied in Theoretical Training 1.


METHODOLOGY Individual assistance and consulting for the LPA companies chosen. Based upon an initial diagnosis, provide in depth assistance to a company to develop and improve a product; Apply the technological information for raw materials / products / tool projects, presented in Theoretical Training 1, on the product selected. Expand the methodology applied on Theoretical Training, using modifications, making use of the product selected. Duration: 8 hours per company (total 120 hours) Product conception and project (analysis): (total: 200 hours) Reverse engineering and Prototyping: (total 225 hours) APPROPRIATENESS OF THE PRODUCTION PROCESS Training – Theoretical and Practical Training THEORETICAL TRAINING 2 – TRAINING: Thermoplastics Injection Process Objective To train participants to implement methodologies that aid in the compliance of the production process. Content Appropriateness of the raw materials (choice, control, storage, greenhouse, mixture); Equipment (machinery, components); Fast exchange (set-up) Important process aspects (problems and solutions); Finishing on the product;

Technical form preparation Tools evaluation (check – list)

Duration: 40 hours

ASSISTANCE OBJECTIVE To provide guidelines to a company concerning the appropriateness of their production process on a new product, or further, to improve existing processes. METHODOLOGY


Individual assistance and consulting for companies on the LPA chosen. - Instructions concerning the appropriateness of their machinery and/or equipment, or

further, the acquisition of new ones; - Set-up; - Appropriateness of the raw materials (choice, control, storage, greenhouse, mixture); - Product finishing; - Storage and stocking; - Control and tests; Duration: 8 hours per company (total 120 hours)

Appropriateness of the Production Process: 150 hours

APPROPRIATENESS OF THE PRODUCTION PROCESS (MANUFACTURING) TRAININGS – THEORETICAL AND PRACTICAL TRAINING THEORETICAL TRAINING 3 – TRAINING: Manufacturing Process – Thermoplastics Injection OBJECTIVE To train companies to organize their production process in order to reduce waste and improve competitiveness. METHODOLOGY Demonstration and practical classes; Content: - Lay-out (macro and local); - Production planning; - Production control; - Process form; - Quality control – Visual techniques; - Quality control – Laboratory tests; - Reuse of waste (remnants). Duration: 40 hours ASSISTANCE


OBJECTIVE To train companies to organize their production process in order to reduce waste and improve competitiveness. METHODOLOGY Assistance and individual consulting to companies listed for the LPA.

Content

- Study and Organization of the Lay-out; - Assessment of the appropriateness of production planning; - Apply production control tools; - Develop and apply process forms. Duration: 8 hours per company (total 120 hours) Phase 4 Reports PERFORMANCE INDICATORS

Strategic Plan of Action - PAE

OBJECTIVE

To accompany the improvements made to both process and product using measurable indicators. CONTENT - Accompaniment of the indicators listed; - Preparation of reports; - Evaluation of the results; - Realignment of the process; - Preparation of the Strategic Plan of Action – PAE


EVALUATION OF INDICATORS

Two months following the end of the project, the performance of the production for the participating companies will be calculated, based on the criteria and indicators defined in advance by the partners, in order to assess productivity or competitive gains related to the training received within the scope of the project. SENAI instructors/consultants will be responsible for establishing the measurement processes at the companies.

Duration: 80 hours

Assistance consulting (technical hours): total of 440 hours

Instruction (technical hours): total of 244 hours.

analysis of the plastic product sector in brazil

Documents