Opportunities and Challenges of

“Plastic Sector” in Bangladesh

Light weight, attractive color, ease of processing, non-rusting property and low cost are some of the features of plastic.

As a result, many house hold and technical items which were used to be made of metal, wood, clay, etc. are now being made of plastics.

The sector is one of the thrust sectors in the Industrial Policy - 2010.

Bangladesh There are about 3000 manufacturing units in the plastic

sector of which 98% belongs to the Small and Medium Enterprises (SMEs). The plastic sector contributes 1.0 percent of GDP and provides employment for half a million people.

According to UN-ESCAP Report-2009 Growth 20 percent per annum for direct export of plastic

goodsDomestic Market Tk. 9,000 CrorePer Capita Plastic Consumption About 5 kg/YearDirect Export Earning Tk. 500 Crore (US $ 69 million)Deem Export: RMG Accessories Tk. 2000 Crore (US $

286 million)About 3,000 small, medium and large plastic

Manufacturing Units operate across the countryThere are approx. 300 small units in Dhaka City which

recycle about 138 tons of plastic each day.

Bangladesh Commodity polymers widely used in Bangladesh are:

Poly Ethylene (HDPE and LDPE)Poly Vinyl Chloride (PVC)Poly Propylene (PP)Poly Ethylene Terepthalate (PET)Poly Styrene (PS)

• Three basic types of machines employed in plastic products manufacturing Blowing Extrusion Injection Molding

Plastic Products and their Applications in BangladeshAPPLICATIONS PRODUCTS

Accessories for RMG Packaging material, bags, hangers, etc.Household, Tableware & Kitchenware Bucket, jug, plate, glass, containers etc.

Furniture ware Chair, Table etc.Packaging All kinds of food and non-food packaging

Healthcare Toiletries (Soap case, tooth brush), Medical Accessories (blood bag, saline bag, injection, medicine container)

Building and construction Plastic pipe, door, toilet flush etc.

Electrical and Electronic Equipment

Electrical cables and wires, switches, regulator, computer accessories, telecommunication equipment etc.

Agricultural products Plastic pipes for irrigation, and plastic films for shedding crops

Industrial Applications Engineering parts

OpportunitiesShift of Manufacturing Industries

A shift in manufacturing from the west to a region with low labor cost, high knowledge and technology base

Growing Export TrendsThe exports comprise of direct export of plastic goods and deem export

of RMG accessories. In FY 2003-04 total export was Tk.632 cr. whereas in FY 2010-11 it was Tk. 2466.

Rank in Export Sectors6th in export earning sectors of the country.

Competitiveness:The low wage structure and the fast developing recycling industry of

waste plastics in Bangladesh are potential advantages to be competitive in global market.

Market Size PotentialIn 1990 the consumption of plastics was about 14,000 tons. In 2010 it

was 750,000 tons, an increase of 50 times. At present per capita consumption of plastics in Bangladesh is 5

kg/year as compared with the global average of 30 kg/year. The per capita consumption of ASEAN countries is 17 kg/year.

Constraints & ChallengesMajor constraints identified in this sector are:

Skilled manpower development Trouble shooting in operation of processing

machines Mold design and mold makingTesting facilities for quality control servicesCertification for export of plastic productsTechnical consultancy servicesProper management of plastic wastesNegative environmental image of plastic industries

Constraints & ChallengesEnhancing Competitiveness of SMEs

Some large-scale plastic industries have demonstrated capability to be world class in terms of technology, quality and costs. However, 98% plastic manufacturing units belong to the small-medium sector (SMEs). Major task will be to make these SMEs competitive in the global market by upgrading them in terms of innovative technology, products diversity and operation costs.

Environmental Issues and Recycling of Waste Plastics Management of PE bags Recycling of Waste of Plastics

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