Philippine Chemical Industry · Philippine Chemical Industry ... Samahan sa Pilipinas ng mga Industriyang Kimika 25. Summary •The Philippine chemical industry is highly strategic

The Philippine Chemical Masterplan

August 1, 2013

Bobby Batungbacal, PresidentSamahan sa Pilipinas ng mga Industriyang Kimika

Samahan sa Pilipinas ng mga Industriyang Kimika

PROFILE OF THE CHEMICAL INDUSTRY

12/9/2012Samahan sa Pilipinas ng mga Industriyang

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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 sizesEU -US$ 600 billionUS - US$ 500 billionChina – US$ 300 billionBelgium, France, Japan – US$ 200 billion each

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

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

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 CodeEmployee Health and

Safety Code

Distribution Safety CodeProduct Stewardship

Code

Community Awareness and Emergency Response Code

Security Code60 CountriesIn Philippines

since 1995

Voluntary self-regulation

Chemical Trade Growth


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IMP

OR

TSEX

PO

RTS

Ave G.R: 13%

Ave G.R: 17%

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+42022

Domestic feedstockDiversification &

expansionUS$ 10 billion exports

GLOBAL CAPTURE

2030

3rd largest export

US$ 30 billion exports

Strategic Vision


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• Create a wide range of products by leveraging our comparative advantage1. DIVERSIFIED

• Satisfy the domestic demand and be a leading contributor to the Philippine export basket2. POSITIVE TRADE

• Promote a high level of workforce productivity3. PRODUCTIVITY

• Be innovative, both in products and processes4. INNOVATION

• Develop and manage the industry sustainably to protect the natural assets on which the industry depends5. SUSTAINABILITY

• Be competitive as an industry so as to provide benefits to the Philippine economy and to the Filipino people6. INCLUSIVE

RECOMMENDATIONS TO GOVERNMENT


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GOVERNMENTGOVERNMENT


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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,

oleochemicals, etc.

TESDA, Chemical Companies

Develop skills for grassroots entrepreneurial capabilities for

applied technology for new application products/indigenous

materials/green products

DTI, DOST

Science and Technology based Legislation and Policy


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Use of scientific studies and methodologies to

guide legislative processes in Congress and

local councilsSenate, 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

Establishment of the Chemical Industry Cluster Zone


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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

OUTCOMES & MEASURESGOALS 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

- Trade12/9/2012Samahan sa Pilipinas ng mga Industriyang

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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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Documents

Philippine Chemical Industry · Philippine Chemical Industry ... Samahan sa Pilipinas ng mga Industriyang Kimika 25. Summary •The Philippine chemical industry is highly strategic