Bangladesh's plastics industry to grow to US$4B turnover by 2020 from US$1B now, but country must address its infrastructure support, facilities for waste management and recycling, skills development, UN report says

LOS ANGELES , July 26, 2012 () –

The plastics industry in Bangladesh is expected to increase its turnover to US$2 billion by 2015 and double that to $4 billion five years later, according to a new report by the United Nations’ Economic and Social Commission for Asia and the Pacific, reported Plastics News on July 26.

The report, which is a case study on Bangladesh, notes that the country’s plastic industry is a substantial sub-sector of its chemical industry, and now has a market of about $1 billion. Of this, $714 million is consumed domestically and the remainder is exported.

Bangladesh has one of the lower levels of plastics consumption globally. Per capita consumption of plastics and plastics-based products in the country is just 2 kilograms versus the global average of 80 kg. per person, the report indicates, Plastics News reported.

Consumption should grow, however, as the country’s economy expands. The country will need to make it a priority to address three key issues, including infrastructure support, recycling and waste management facilities, and skills development, according to the study.

The report suggests that the government of Bangladesh establish a separate economic zone for the plastics industry. This would provide such economic amenities as uninterrupted power to operate the factories on a reliable schedule, reported Plastics News.

Bangladesh also should provide the plastics industry with consistent policies and policy direction, suggests the report. While the country’s plastic industry has made progress it lacks a well-designed approach to reaching long-term, sustainable growth, it was noted in the report.

The plastic sector in Bangladesh has about 3,000 manufacturing facilities that employ more than two million people directly and indirectly. Plastics recycling is a sizeable portion of the sector, with major recycling centers in an around Dhaka, the UN study indicated, Plastics News reported.

The primary source of this article is Plastics News, Akron, Ohio, on July 26, 2012.

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