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BIOCOM  Naft Asia Biodegradable Plastics Corporation

BIOCOM  Naft Asia Biodegradable Plastics Corporation. JSP JIA SHING PLASTIC INDUSTRIES PTE. LTD. Executive summary. Market Research…………………………………………… 1 Market Environment……………………………………….. 2 - 6 Some numbers……………………………………… 3 Environmental concern…………………………….. 4

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BIOCOM  Naft Asia Biodegradable Plastics Corporation

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  1. BIOCOMNaft Asia Biodegradable Plastics Corporation JSP JIA SHING PLASTIC INDUSTRIES PTE. LTD.

  2. Executive summary • Market Research……………………………………………1 • Market Environment………………………………………..2- 6 • Some numbers………………………………………3 • 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 opportunity………………………………14 • Different thoughts to reduce plastic bag usage………15 • Strategy………………………………………………………16 • An alternative………………………………………………..17

  3. Market Research Plastic bags Back

  4. Market Environment World & French trends Back

  5. 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 Some numbers 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 • Reduce cost • Improve company image in environmental concern • Environmental friendly • Easier for exporting with better packaging Click Click Back

  12. JSP Biocom® Technology Plastic bags No specific machine adjustment Material cheaper than corn starch Low petrochemical properties No incidence of petroleum market fluctuations Lower material cost at mass production 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 • Safe • Effective • Functional • Competitively priced • Positioning • Biocom bags are better than both conventional PE bags & “biodegradable” bags 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 16:China Hygienic Standard for Composted Laminated Food Packaging Bag 1999 July: China Agricultural Science Soil and Fertilizer Institute 1999 June 05:China 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. Environmental politics Desire to stop using plastic bags (less 25% usage in 3 years) Opportunities and Threats • “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. ASpecificOpportunity • 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 customer’s 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

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