BIOCOM? Naft Asia Biodegradable Plastics Corporation

1
BIOCOM?Naft Asia Biodegradable Plastics
Corporation

• JSP
• JIA SHING PLASTIC INDUSTRIES PTE. LTD.

2
Executive summary

• Market Research1
• Market Environment..2 - 6
• Some numbers3
• Environmental concern..4
• French case.5
• Consumer behavior....6
• Biocom?.7 - 10
• What is Biocom? .8
• Reasons for using Biocom? ..9
• Biocom? technical information..10
• SWOT analysis...11 - 14
• Strengths.12
• Opportunities threats.13
• A specific opportunity14
• Different thoughts to reduce plastic bag
  usage15
• Strategy16
• An alternative..17

3
Market Research

• Plastic bags

Back
4
Market Environment

• World French trends

Back
5
Some numbers

• French plastic bag industry in 2003
• Import 40
• Production 60
• Who buy ?
• Great distribution 70
• Smaller distributors 30
• T-shirt bags 88 15 billions units per year
• Basket bags 12 2 billions units per year

Back
6
Environmental Concern

• Different countries declared the war to plastic
  bags
• Taiwan plastic bags are forbidden by law
• Ireland 0.15 euro Tax on plastic bags less 90
  usage in 3 months
• France (most particularly Corsica) alternatives
  tested
• Bangladesh plastic bags are forbidden by law
• Australia, New Zealand, UK, Singapore
  sensitization campaign
• Japan on 14 million Ton plastic per year, only
  20 000 Ton are biodegradable. Tries to produce a
  polymer based on rice (as its rice stock over 3
  million Ton)
• 100 billions plastic bags 12 millions oil
• barrels (USA numbers)

Back
7
French Case

• Since few years, super/hypermarkets started to
  propose diverse alternatives to plastic bags
• The different payable alternatives are
• Paper bag (0.08 euro cents / piece)
• Basket bag refundable (1 euro / piece)
• Mater-bi bag (0.05 to 0.14 euro cents / piece)
• The solution adopted in most of the cases is the
  refundable basket bag (Corsica 61 of votes)
• Objective less 25 of plastic bags in 3 years

FCD source (Federation des Entreprises du
Commerce et de la Distribution)
Back
8
Consumer Behavior

• Consumers are environmentally concerned

• But 50 of them wish to continue using plastic
  bags
• (64 of these 50 are young peoples)

• 18 are willing to use payable alternatives
  (peoples of 65 years old and over)

• 80 of consumers reuse their plastic bags as bins

• 90 of consumers are willing to use less plastic
  bags

Source IFOP - FCD
Back
9
BIOCOM?

• Multi-degradable Resin

Back
10
What is Biocom? ?

• The first company in the world using
  Multi-degradable Resin in degradable products
  (photo-degradation, hydro-degradation,
  oxy-degradation and Biocom? degradation).
• Using Biocom? means no increase in cost and
  great support to the environmental business.
• Biocom? products can be recycled, and is also
  suitable for incineration (no agglomeration can
  improve incinerator life).
• Biocom? general application shopping t-shirt
  bags, grocery packaging bags, plastic film for
  fruit vegetables, fast food disposal tableware
  and container.
• Storage time is 5 to 10 years.
• Plastic products made by Biocom? will degrade by
  95 in a natural environment in one year,
  remaining 5 will completely degrade within 5
  years.

Back
11
Reasons for using Biocom?
Click

• Reduce cost
• Improve company image in environmental concern
• Environmental friendly
• Easier for exporting with better packaging

Click
Back
12
JSP Biocom Technology Plastic bags
Material cheaper than corn starch
No specific machine adjustment
Low petrochemical properties
Lower material cost at mass production
No incidence of petroleum market fluctuations
No supplementary cost
JSP degradable bags Cost Effectiveness
Back
13
Environmental Friendly
Day 83 Film crumbled into brittle shreds
Back
Day 115 Film almost completely degraded under
visual examination
14
Biocom? Technical Information

• Polymer additives multi-degradable resin
• Environmental friendly
• Easy application
• Cost effectiveness
• Patented resin
• Completely safely degradable
• Praised (customers)
• Properties
• Recyclable
• Safe for incineration
• In a landfill environment, at least as good as
  PE, even better
• If in an outdoor environment, help to litter
  control
• Tests
• Non toxic, hygienic
• Safe for food packaging and not harmful to the
  soil
• Photodegradable
• Mechanical and chemical actions
• Good quality (tensile fracture OK)
• Strengths

More details
?
Back
15
Summary for Accredited Test Reports
2003 Dec 22 Intertek Testing Services NA Ltd,
Canada 2003 Oct 08 China National Center for
Quality Supervision Test of Plastic
Products 2001 Apr 03 AM Test Laboratories,
Inc., U.S.A. 2000 Oct 17 Hebei Province Test
Station for Hygienic Epidemic Prevention - Resin
Finished Products 2000 Oct 12 China National
Center for Quality Supervision Test of Plastic
Products 2000 Jun 27 China National Center for
Quality Supervision Test of Plastic
Products 1999 Nov 02 Heavy Metal Research
Center of China Agricultural Science Soil and
Fertilizer Institute 1999 Sept 16China Hygienic
Standard for Composted Laminated Food Packaging
Bag 1999 July China Agricultural Science
Soil and Fertilizer Institute 1999 June 05China
National Center for Quality Supervision Test of
Plastic Products
Back
16
SWOT Analysis

• Strengths and Weaknesses
• Opportunities and Threats

Back
17
Strengths

• Biodegradable

• Recyclable

• Fulfilled tests

• Market demand

• Cost effective

Back
18
Opportunities and Threats

• Environmental politics

• Desire to stop using plastic bags (less 25 usage
  in 3 years)

• Plastic war

• Plastic bags bad image

• Alternative between PE bags and still
  experimental natural polymers

• New natural polymers (starch corn)

• Consumers still prefer using plastic bags

• Replacement products (paper bag, refundable bag)

• Other alternatives use fossil resources

Back
19
A Specific Opportunity

• According to the results of the study ordered by
  Carrefour, the Reusable Flexible LDPE Bag would
  be one that has the less impact on the
  environment (the one super/hypermarkets should
  use)

• The weaknesses of such bags, are that people
  have to pay for it, and they have to use it at
  least 4 times to be effective however peoples
  often forget it

• Reusable Flexible loops Bags represent a good
  opportunity to Biocom?, being able to make them
  degradable

Ecobilan and ADEME
Back
20



Disposable bags have a price Consigned 0,15
euro, Exchangeable at life The E.Leclerc bag,
an exception which should be a rule
?
If we use Biocom with any kind of bag, we can
make the world even better
21
Different thoughts to reduce plastic bag usage

• Prohibition Restriction Not realistic
  because of the conflict between environmental
  protection and convenience, but a real abuse
  exists. The real problem appears to be food
  packaging materials.
• Using degradable and suitable material for
  incineration Dry plastic material can be
  recycled and reused, need a regulation to
  encourage incineration practice.
• Minimizing household garbage Difficult
  because depends on the packaging material and its
  ability to be easily cleaned up, assorted and
  recycled.
• Packaging legislation To control potential
  abuses in food packaging.
• Paper Not environmental friendly anymore.
  Can harm the earth.
• Fee system for recycled material
  Establish regulation for recycling. Free
  collection would be a good way to solve the
  problem.

Back
22
Strategy
In regards to all the information we found, the
better strategy to adopt would be
To base our communication on the fact that it is
an existing need
To promote Biocom? as an Alternative to this need
And to educate peoples on biodegradable plastic
bags and why is it a good alternative
Back
23
An Alternative

• To the need to be environmental friendly while
  not changing too much the customers habits
• To sensitize people to the care of their
  environment
• To classic disposable PE bags
• To reusable PP carrier bags, which are not
  convenient in case of unexpected shopping
• To biodegradable bags intended only to organic
  wastes
• To other expensive and experimental biodegradable
  bags, or paper bags (not so environmental
  friendly)

Back
24
(No Transcript)