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 Industriyang 12/9/2012 2 Kimika
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
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 Samahan sa Pilipinas ng mga Industriyang 12/9/2012 4 Kimika
Philippine Chemical Industry • 3 rd 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 CHEMICAL RUBBER PLASTIC PRODUCTS PRODUCTS PRODUCTS Resins Pharmaceutical Tires Plastic articles Basic chemicals Soap & Detergents Industrial products Plastic products Gases Paints, Inks Re-threading Pipes and tubings Organics Cosmetics Industrial products Fertilizers Inorganics Films, sheets Pesticides Alcohols Adhesives Samahan sa Pilipinas ng mga Industriyang 12/9/2012 6 Kimika
Philippine Chemical Manufacturing Industry (Php 336 Billion) PSIC Codes: D241, D242, D251, D252 Source: NSO, 2009 ASPBI Samahan sa Pilipinas ng mga Industriyang 12/9/2012 7 Kimika
D241: Basic Chemicals (Php 48.3 billion) Samahan sa Pilipinas ng mga Industriyang 12/9/2012 8 Kimika
D242: Other Chemical Products (Php 177.5 Billion) Samahan sa Pilipinas ng mga Industriyang 12/9/2012 9 Kimika
D251: Rubber Products (Php 16.8 Billion) Samahan sa Pilipinas ng mga Industriyang 12/9/2012 10 Kimika
D252: Plastic Products (Php 81.3 Billion) Samahan sa Pilipinas ng mga Industriyang 12/9/2012 11 Kimika
Industry Value Chain • Air Minerals Water Oil (Naphtha) • Natural gas Plants Coal Raw Materials • Hydrogen *Nitrogen *Oxygen *Chlorine *Carbon Oxide *Caustic Soda *Soda Ash *Chlorine*Hydrochloric Acid *Sulfuric Acid *Phosphoric Acid *Ethanol *Ethylene *Propylene *Benzene *Toluene *Xylene Intermediates • 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 Primary peroxide*ammonium nitrate Products • Plastic products Rubber products Explosives • Coatings and Inks Adhesives Pharmaceuticals Chemical • Soap and detergent Cosmetics Oil & Fat products Products Samahan sa Pilipinas ng mga Industriyang 12/9/2012 12 Kimika
Responsible Care Voluntary self-regulation Pollution Prevention Employee Health and Process Safety Code Code Safety Code Community Awareness Product Stewardship and Emergency Distribution Safety Code Code Response Code In Philippines 60 Countries Security Code since 1995 Samahan sa Pilipinas ng mga Industriyang 12/9/2012 13 Kimika
Chemical Trade Growth Ave G.R: 13% IMPORTS Ave G.R: 17% EXPORTS Samahan sa Pilipinas ng mga Industriyang 12/9/2012 14 Kimika
THE PHILIPPINE CHEMICAL MASTERPLAN 2030 Samahan sa Pilipinas ng mga Industriyang 12/9/2012 15 Kimika
Samahan sa Pilipinas ng mga Industriyang 12/9/2012 16 Kimika
Philippine Chemical Masterplan GLOBAL CAPTURE 2030 3 rd largest Enter ASEAN+4 2022 export Strong Philippines US$ 30 billion Domestic feedstock 2016 Diversification & exports Chemical Industry Council expansion Petrochem integration US$ 10 billion exports R&D 0.5% of Revenue US$ 5 billion exports 75% practice RC Samahan sa Pilipinas ng mga Industriyang 12/9/2012 17 Kimika
Strategic Vision • Create a wide range of products by leveraging our 1. DIVERSIFIED comparative advantage • Satisfy the domestic demand and be a leading contributor 2. POSITIVE TRADE to the Philippine export basket 3. PRODUCTIVITY • Promote a high level of workforce productivity 4. INNOVATION • Be innovative, both in products and processes • Develop and manage the industry sustainably to protect 5. SUSTAINABILITY the natural assets on which the industry depends • Be competitive as an industry so as to provide benefits to 6. INCLUSIVE the Philippine economy and to the Filipino people Samahan sa Pilipinas ng mga Industriyang 12/9/2012 18 Kimika
RECOMMENDATIONS TO GOVERNMENT Samahan sa Pilipinas ng mga Industriyang 12/9/2012 19 Kimika
GOVERNMENT GOVERNMENT Samahan sa Pilipinas ng mga Industriyang 12/9/2012 20 Kimika
Engineering and Science Advanced Technology Program (EnSAT Program) ACTION PLAN RESPONSIBLE ENTITIES Send engineers and science graduate to master and PHD CHED, DOST, Philippine universities’ Center of program in other countries; Excellence in Engineering and Sciences Develop industrial training programs towards acquiring and Chemical companies in the Philippines, mother applying expertise/knowledge on specific chemical industry companies, foreign partners, foreign technology needs universities, National research Council of the Philippines Develop technology and skills preparedness program for high Tesda, LGUs, Philippine Science High Schools school graduates Develop training programs for skills needed in the downstream TESDA, Chemical Companies industry using chemicals like plastics, paints, adhesives, oleochemicals, etc. Develop skills for grassroots entrepreneurial capabilities for DTI, DOST applied technology for new application products/indigenous materials/green products Samahan sa Pilipinas ng mga Industriyang 12/9/2012 21 Kimika
Science and Technology based Legislation and Policy ACTION PLAN RESPONSIBLE ENTITIES Use of scientific studies and methodologies to guide legislative processes in Congress and local councils Senate, Congress, DENR, DTI, Presence of technocrats as part of standing LGUs, DENR, Civil societies groups committees to craft policies and legislation for (NGOs) 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 Samahan sa Pilipinas ng mga Industriyang 12/9/2012 22 Kimika
Establishment of the Chemical Industry Cluster Zone ACTION PLAN RESPONSIBLE ENTITIES Identification of chemical industry cluster location Identification of sectors in the chemical industry that will locate in the cluster zone • Chemical industry Institutionalize incentive programs (Replicate PEZA incentives) for • DTI companies in the cluster zone that will supply products for domestic needs • BOI • Senate and Congress Subsidies on infrastructure for cluster zone locators • DOLE • Tapping SMEs in the downstream market to be part of the DOE industry cluster • DENR 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 Samahan sa Pilipinas ng mga Industriyang 12/9/2012 23 Kimika
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