The Philippine Chemical Masterplan August 1, 2013 Bobby - - PowerPoint PPT Presentation

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The Philippine Chemical Masterplan August 1, 2013 Bobby - - PowerPoint PPT Presentation

The Philippine Chemical Masterplan August 1, 2013 Bobby Batungbacal, President Samahan sa Pilipinas ng mga Industriyang Kimika Samahan sa Pilipinas ng mga Industriyang Kimika PROFILE OF THE CHEMICAL INDUSTRY Samahan sa Pilipinas ng mga


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The Philippine Chemical Masterplan

August 1, 2013 Bobby Batungbacal, President Samahan sa Pilipinas ng mga Industriyang Kimika

Samahan sa Pilipinas ng mga Industriyang Kimika

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PROFILE OF THE CHEMICAL INDUSTRY

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Global Chemical Market

  • One of the largest trade-able products in the

world worth US$ 6 trillion in total trade.

  • Chemicals touches nearly 90% of all

manufactured products

Market sizes

EU -US$ 600 billion US - US$ 500 billion China – US$ 300 billion Belgium, France, Japan – US$ 200 billion each

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Benefits of Chemistry to Society

  • Enables modern life
  • Pharmaceutical, cleaners, disinfectants, plastic

packaging to saves lives

  • Chlorine for safe drinking water
  • Fertilizers, pesticides, biotech increase food

production

  • Chemistry to reduce CO2 emissions & enables

renewable energy

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Philippine Chemical Industry

  • 3rd largest manufacturing sub-sector

– 147,000 direct workers – Php 24 billion in direct salaries and wages – Php 336 billion in revenues, 7% g.r. in last 5 years – 1,405 chemical manufacturers

  • Rapidly growing chemical trade

– US$ 9 Billion in total trade in 2011 – US$ 7 Billion imports at 13% g.r. in last 5 years – US$ 2.5 Billion in exports at 17% g.r. in last 5 years – Exporting to 177 countries

  • Highly diverse and highly regulated

– 55,000 chemicals registered – Advanced and comprehensive EHS regulations – Pro-active private sector regulation thru Responsible Care

Source: NSCB 2011 National Accounts at Current Prices, NSO-ASPBI 2009, 2011 Global Trade Atlas

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Chemical Sectors & Products

BASIC CHEMICALS

Resins Basic chemicals Gases Organics Inorganics Alcohols

CHEMICAL PRODUCTS

Pharmaceutical Soap & Detergents Paints, Inks Cosmetics Fertilizers Pesticides Adhesives

RUBBER PRODUCTS Tires Industrial products Re-threading PLASTIC PRODUCTS Plastic articles Plastic products Pipes and tubings Industrial products Films, sheets

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Philippine Chemical Manufacturing Industry

(Php 336 Billion)

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PSIC Codes: D241, D242, D251, D252 Source: NSO, 2009 ASPBI

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D241: Basic Chemicals

(Php 48.3 billion)

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D242: Other Chemical Products

(Php 177.5 Billion)

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D251: Rubber Products

(Php 16.8 Billion)

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D252: Plastic Products

(Php 81.3 Billion)

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Industry Value Chain

Raw Materials

  • Air

Minerals Water Oil (Naphtha)

  • Natural gas

Plants Coal

Intermediates

  • Hydrogen *Nitrogen *Oxygen *Chlorine *Carbon Oxide *Caustic Soda *Soda Ash

*Chlorine*Hydrochloric Acid *Sulfuric Acid *Phosphoric Acid *Ethanol *Ethylene *Propylene *Benzene *Toluene *Xylene

Primary Products

  • Surfactants *Industrial Gas *Fertilizers *Agricultural Chemicals *Petrochemicals *Oleochemicals

(cocomethyl esters, fatty acid & alcohols, glycerine)*Plastics (PE,PP, PVC, PS)* Pigments and additives*Bioethanol*Others: calcium carbide*carbon black*activated carbon*hydrogen peroxide*ammonium nitrate

Chemical Products

  • Plastic products

Rubber products Explosives

  • Coatings and Inks

Adhesives Pharmaceuticals

  • Soap and detergent

Cosmetics Oil & Fat products

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Responsible Care

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Pollution Prevention Code Process Safety Code Employee Health and Safety Code Distribution Safety Code Product Stewardship Code Community Awareness and Emergency Response Code Security Code

60 Countries

In Philippines since1995

Voluntary self-regulation

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Chemical Trade Growth

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IMPORTS EXPORTS

Ave G.R: 13% Ave G.R: 17%

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THE PHILIPPINE CHEMICAL MASTERPLAN 2030

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Philippine Chemical Masterplan

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Strong Philippines 2016

Chemical Industry Council Petrochem integration R&D 0.5% of Revenue US$ 5 billion exports 75% practice RC

Enter ASEAN+4 2022 Domestic feedstock Diversification & expansion US$ 10 billion exports

GLOBAL CAPTURE 2030 3rd largest export US$ 30 billion exports

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Strategic Vision

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  • Create a wide range of products by leveraging our

comparative advantage

  • 1. DIVERSIFIED
  • Satisfy the domestic demand and be a leading contributor

to the Philippine export basket

  • 2. POSITIVE TRADE
  • Promote a high level of workforce productivity
  • 3. PRODUCTIVITY
  • Be innovative, both in products and processes
  • 4. INNOVATION
  • Develop and manage the industry sustainably to protect

the natural assets on which the industry depends

  • 5. SUSTAINABILITY
  • Be competitive as an industry so as to provide benefits to

the Philippine economy and to the Filipino people

  • 6. INCLUSIVE
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RECOMMENDATIONS TO GOVERNMENT

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GOVERNMENT GOVERNMENT

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Engineering and Science Advanced Technology Program (EnSAT Program)

ACTION PLAN RESPONSIBLE ENTITIES

Send engineers and science graduate to master and PHD program in other countries; CHED, DOST, Philippine universities’ Center of Excellence in Engineering and Sciences Develop industrial training programs towards acquiring and applying expertise/knowledge on specific chemical industry technology needs Chemical companies in the Philippines, mother companies, foreign partners, foreign universities, National research Council of the Philippines Develop technology and skills preparedness program for high school graduates Tesda, LGUs, Philippine Science High Schools Develop training programs for skills needed in the downstream industry using chemicals like plastics, paints, adhesives,

  • leochemicals, etc.

TESDA, Chemical Companies Develop skills for grassroots entrepreneurial capabilities for applied technology for new application products/indigenous materials/green products DTI, DOST

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Science and Technology based Legislation and Policy

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ACTION PLAN RESPONSIBLE ENTITIES

Use of scientific studies and methodologies to guide legislative processes in Congress and local councils Senate, Congress, DENR, DTI, LGUs, DENR, Civil societies groups (NGOs) Presence of technocrats as part of standing committees to craft policies and legislation for the industry Legislate information dissemination programs for the public to fully understand the use and disposal of chemical products Curb eliminate tax evasion & smuggling through proper and strict implementation of laws

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Establishment of the Chemical Industry Cluster Zone

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ACTION PLAN RESPONSIBLE ENTITIES

Identification of chemical industry cluster location

  • Chemical industry
  • DTI
  • BOI
  • Senate and Congress
  • DOLE
  • DOE
  • DENR

Identification of sectors in the chemical industry that will locate in the cluster zone Institutionalize incentive programs (Replicate PEZA incentives) for companies in the cluster zone that will supply products for domestic needs Subsidies on infrastructure for cluster zone locators Tapping SMEs in the downstream market to be part of the industry cluster Develop a master plan for the creation of the chemical industry cluster for the domestic market similar to the Jurong Island Rationalization of processes to allow backward and forward integration Expansion of infrastructure services to the zone

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OUTCOMES & MEASURES

GOALS OBJECTIVES/OUTCOMES INDICATORS

  • 1. Create a wide range of products

with the best consumer value by adding value to the nation’s basic resources New product offerings that:

  • Are competitive in price, quality and service
  • support forward integration to consumer goods
  • are for environmental applications
  • are diversified and differentiated

Number of products introduced for specific markets and uses; products with comparative advantage Available and sufficient feedstock Domestic supply of raw materials Increased utilization and patronage of local raw materials Number of products developed using local raw materials

  • 2. Satisfy the domestic demand and

be a leading contributor to the Philippine export basket An industry that is a net exporter Import /Export Data

  • 3. Promote a high level of workforce

productivity A cadre of skilled, trained and motivated workforce that have high levels of productivity Labor productivity

  • 4. Be innovative, both in products

and processes Innovative products and processes

  • Number of patents and trademarks applied for
  • New technology produced
  • Number of new products and processes introduced
  • Number of technology licenses
  • 5. Develop and manage the

industry sustainably to protect the natural assets on which the industry depends

Chemical companies’ adherence to sustainability and Responsible Care principles

  • Number of companies with RC and Environmental

Management Systems (ISO 14001, ISO 26000)

  • EMB data on chemical industry
  • New management system on sustainability
  • Number of active programs by companies
  • 6. Be competitive as an industry

so as to provide benefits to the Philippine economy and to the Filipino people

Top export performance Trade performance New chemical MSMEs Number of SME partners developed Significant contribution to GDP

  • Share to GDP
  • Employment
  • Investments
  • Trade

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RECENT UPDATES ON THE ROADMAP

  • 1. Ease of Doing Business

(a) EMB and FDA have replied positively, by issuing circulars, to our request for facilitation of issuance of government permits.

  • 2. Science and Technology and Workforce Productivity

(a) ERDT has assigned 10 scholars to SPIK to do applied research for the chemical manufacturing companies. (b) TESDA has already identified the required technical skills for the chemical industry, to be included in TESDA's curriculum.

  • 3. Innovation

(a) DOST-PCIEERD has agreed to collaborate with SPIK in the holding of 2nd SPIK INNOVATION FAIR in the DOST compound in December.

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Summary

  • The Philippine chemical industry is highly

strategic to the Philippine economy.

  • Manufacturing and trade is rapidly growing
  • Need to diversify our products thru research,

production and trade.

  • Leverage on chemicals with comparative

advantage.

  • Support the Philippine Chemical Masterplan and

the vision of US$ 30 Billion exports by 2030.

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